You have an idea for a business venture. You prepared a plan for the business, and have the financing secured. You are ready to start up a business of your own. Unfortunately, some entrepreneurs believe these to be the only things you need to think about before starting the business. There are some mistakes that are common an entrepreneur makes.
Some of these include:
All The Wrong Reasons
One common mistake, going into business for yourself for reasons that are wrong. If you recently been fired from your employment, step back and take the time to identify your weaknesses and strengths. There is a lot of prep work that needs to be done, prior to sinking time and money into a new business venture.
However, if you have done all your homework, had a business plan, weighed the pros and cons, then, by all means, go for it. As long as you have your eyes open wide, going into it.
No Long-Term Plans
Another mistake commonly seen, there is no long-term business plan made. Entrepreneurs sometimes only plan and see the first year of operation. You need to have an idea and plan that is solid, to keep the business profitable for several years. Having the passion for the business is needed, but your business could fail if you do not have a long-term business model. You want to do plenty of market research.
Businesses that succeed and grow are ones that are always reinventing themselves. Their services and products are always improving, and they are constantly looking for new ways to increase profits.
Sinking it All in
A mistake saw too often, sinking everything you have into your venture. Borrowing money from family and friend may not be a good idea, many times relationships are hurt doing this. Taking the money you plan to replace later, from your child’s college fund, or a 401k is usually a bad idea. If the bank will not support the idea you have, maybe the plan you made needs to be rethought.
If the bank does not give all of the businesses money for start-up, make sure shares are divided fairly.
No Backup Plan
Some new entrepreneurs make the mistake of not having a backup plan. Even though you might not want to think of any negative, you have to be ready for the unexpected. There are lawsuits, recalls of products, labor disputes, the stock market and insurance problems that can possibly happen. Keeping yourself aware of these possible pitfalls, can help you see them prior to your business going down the drain.
There are many mistakes an entrepreneur can make. If these can be avoided, the rewards you receive from this can be great. Always be honest with yourself. Clients, advisors, and employees should be listened to. Take time for preparation, reviewing, and improving aspects you have for your business plan. This helps avoid career mistakes that can be costly.