In today’s tough economic times, it is a good idea to start a business and become your own boss instead of searching for dream jobs you might never find. As a young and upcoming entrepreneur, you will be full of zeal and spirit and will always be willing to do everything possible to make things move your way. However, this does not mean you will be successful in everything you do. As a normal human being, you are bound to make many little mistakes along the way that will end up costing you. For you to avoid making these mistakes and do well, you should learn from older entrepreneurs who have made several trials, failed at one point or another, and finally managed to succeed.
The following are the top 7 common mistakes often made by young entrepreneurs. Go through them and identify the ones that ring a bill in your mind. Most importantly, learn how to avoid them to increase your chances of standing out among your competitors in the field of entrepreneurship.
7 Common Mistakes Young Entrepreneurs Make and How To Avoid Them
1. Not Having Clear Goals and Vision
One of the greatest mistakes you can ever do as an entrepreneur is failing to come up with clear goals for your business. According to research, many young entrepreneurs just decide to venture into business without even thinking about the implications. They are not only unsure of what they want to achieve, but also don’t know how to achieve it.
As an upcoming entrepreneur, it is very important for to know that the success of your business depends greatly on the goals you set. You should know exactly what you want your business to achieve from the beginning. Plan everything to the detail and stick to every plan. If your goal is to establish the biggest customer-oriented company in town, you need to stop sitting around and work hard toward achieving your goal. Some of the most important factors you should take into consideration while making your plans include:
- Both the long-term and long-term goals
- Your target market
- A comprehensive organisational structure
- An executive summary outlining the responsibilities of every employee
It is also very important for you to inform all your employees about your desired goals for the business. Once they have an idea of what you intend to achieve, they will work hard and put the much-needed effort to make it a success.
2. Taking Financial Planning for Granted
Failing to put enough finances for your business in place is a clear indication that your business will be going nowhere. For a business to thrive and stay afloat, everything must be budgeted and catered for from the start. If you do not have enough capital to invest in your business, it is better to start looking for ways to get money early enough even it means loaning or looking for part-time jobs. Even though it’s not easy, you can also try to ask for funds from your trusted friends and family members.
Once you get enough money from loans, other infrastructural investments, or salaries, you need to plan very carefully on how to use it for the betterment of your business. Avoid mismanaging business money as much as possible. Do not start behaving like other irresponsible young adults wasting money on fancy cars, girlfriends, and expensive trips for no good reason. In any case you do not know how to manage large sums of money due to inexperience, it is very important for you to ask for advise from trusted friends, business associates, or relatives.
3. Trying to Do Everything Alone
It is very true that most young entrepreneurs prefer handling everything in their businesses alone without asking for assistance from others. This is very detrimental for any type of business. You should always know that running a business is a great challenge that you can never face alone even if you have all the necessary resources at hand. Therefore, you should stop wasting your valuable time trying to do everything alone and start looking for professional support and help from different people. Never be afraid of asking for any type of assistance from people who are more experienced than you. Always strive to work with like-minded individuals who can help you with better ideas on how to manage your business.
Even though it is a good idea to ask for help from others, it is very dangerous to seek for help from everyone. Due to jealousy, some people will try to give you wrong and conflicting opinions just to prevent you from succeeding. The best thing for you to do is to identify and listen to a few trusted individuals who you believe can help you out. Before you start doing anything you are told, you should be able to trust your own instincts and ensure you are doing the right thing.
4. Being Greedy
If your main intention for becoming an entrepreneur or businessman is to get money and become rich, be sure to fail terribly. Being greedy is one of the deadliest mistakes you can ever make as an entrepreneur because instead of building you, it will only destroy you and make you very miserable than you could never have imagined. Never keep your mind solely on the amount of money you expect your business to give you. Instead, try to concentrate on other important things like how to serve your clients in the best way possible, how to motivate your employees, how to get more business partners, how to invest wisely, and other vital factors that can make your business better in future. In addition, always be content with whatever your business has to offer, however little and be proud that you are managing your own life better than many of your peers or colleagues.
5. Unwilling to Admit Faults
Making a mistake is one thing, admitting and correcting it is another. There is no way a person can correct a mistake before admitting to being wrong. Research reveals that a great percentage of entrepreneurs are always unwilling to admit their faults. They tend to believe that their ideologies, strategies, and the way they handle their business issues are the best and should not be questioned by others. They turn deaf ears to important and helpful advises coming from other people. This is very wrong and unprofessional.
It is very important for you to own up to your mistakes and do whatever necessary to correct and learn how to avoid them in future. Try to see where you went wrong and listen to what others have to tell you because they might be having better ideas than you on how to make things work out. By doing this, you will be avoiding unnecessary troubles and inconveniences in the future, which is very healthy for your business. Do not be afraid to listen to what others have to tell you and never assume that you are the only one who knows better. Asking for advise or ideas from others does not mean that they are better than you or that you are inferior.
6. Being Impatient
According to statistics, about 60% of businesses do fail every year because of impatient entrepreneurs. They want to start making money immediately the business is in operation. Impatience is a very dangerous disease that attacks and kills a business in a very easy manner.
As a young entrepreneur, it is very important for you to understand that a business does not grow overnight. It takes time for any business to grow and start bringing in enough income according to expectations. Depending on the nature of your business, things might start getting bright for you after week, months, or even years only if you exercise patience. Concentrate on doing your best at all times and wait to reap the fruits of your hard work when the right time comes. Even though waiting for long might seem unbearable, never try to relent. You have no idea when you might stumble upon something capable of changing your business forever.
7. Forgetting to Create a Brand
Most entrepreneurs usually focus their minds on getting the job done and forget about giving their businesses a clear identity. You need to understand that not many people will trust you immediately you start operating your business. It is a very sensible idea for you to work on building a brand image for your business or company so that potential customers will know exactly what to expect from you. A good brand not only increases your credibility, but will also sends your company’s message clearly and allows you to connect well with your customers and motivate them to keep on coming back for your services and/or good.
If you do not know how to create a good brand, you need to ask your local branding expert to do the job for you. Once you have a brand, you have to maintain it on a regular basis to ensure the success of your business.