The chances of mastering something in the very first time you do it are almost non-existent. Everything in the world takes time to learn and you are ound to make mistakes in the process. And Startups are no exception to this rule.
Entrepreneurship is fun until you step into the real startup scene. Everything you see from outside seems luxurious, but once you plunge yourself into this you’ll realize how hard it is to be a successful entrepreneur. In fact the hard truth is that only 1 out of 10 has what it takes to become a successful startup.
Some common mistakes that the first time entrepreneurs make are:
1. Being non-realistic: While it is good to believe in your business idea, it can become a mistake if you fall in love with your idea without calculating the odds against it. The first time entrepreneurs are sometimes non-realistic about their dreams. Entrepreneurs need to be prepared for worst situations and be realistic that the idea may fail. The best way would be to judge if the consumer response to the product is favourable.
2. Working with Friends: Friendship can be a tricky relation at times, while you could be at an awesome level on a personal front, it is not necessary that you will have the same equation on a professional stage as well. In most cases your long-time friend might not be a good choice to be the co-founder of the startup.
3. Cash Flow Mismanagement: This could be in terms of operational choices (rent versus purchase, used versus new, etc.) and forecasting (not understanding how to create a reasonable revenue projection). It is always a good idea to have a business plan in place. This gives the first time entrepreneurs a good view about the entire situation and also how to tackle it.
4. Mixing Ego with Work: Believe us this can be a dangerous combination. While believing in your ideas is a good thing but believing only your ideas will work all the time and not being considerate to others’ ideas is a dangerous thing to do. The vision of where the company is going, along with company culture is much more important than any of the founding partners. So, be open to ideas and leave your ego outside the office premises
5. Lack of Market Analysis: In a passion to revolutionise the business world, the first time entrepreneurs sometimes forget to analyse the market to understand if their product will fit in. Without testing the market to see if your product is even a viable option to your potential can lead to months, if not years of wasted time and money. t is a good idea to test and get feedback from the market before starting your business.
6. Dreaming bigger than Reasonable: While everyone has the right to dram big, it is everyone’s responsibility to go step by step in achieving their dreams. The unreasonable dream of capturing everything in the very first venture can backfire in a dangerous way, hence it is reasonable to take it one by one. Create campaigns and then target certain niches in each campaign.
7. Trying to do it all by yourself: While we don’t say that this is not possible, but it definitely makes the road difficult. When you’re a single founder, you’re overloaded with tasks. You have full responsibility of everything on your shoulders. Instead, learn to delegate tasks to people. This will give you a much needed breather and you can focus on the betterment of your venture, rather than being stuck up resolving all the problems on your own.
8. Using personal credit card for business transactions: Many experts say that when you invest on a business, only invest what you can afford to lose. Otherwise, this is the best way to get yourself into a pile of debt, where you may end up filing bankruptcy and losing everything. And we say that using personal credit card for your business transactions can get you into problems at time. The better idea is to save for the venture separately and se funds from there.
9. Living a Delusion: No business is that amazing. No idea will “change the world.” Only hard work and strong execution will. Be humble in your presentations. Do not act as if your idea is revolutionary, because it isn’t. It is just an idea and it creating or not creating a revolution will rest solely rest on your execution of the plan.
10. Ignoring your Ideal Customer: We can explain this by an example. While we all read, our taste in reading is not the same. Hence, every novel is letter to a particular reader, who is also known as the ideal reader. Similarly, every product or service is aimed to a particular set of customers who are collectively known as ideal customers. The entrepreneur should be able to understand the pulse of his customers and customise what he has to offer, accordingly.
While making mistakes is only human, but to learn from them is all that is required to move ahead in every sphere of life, including your business venture.