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Every startup entrepreneur has some trepidation about the eventuality of his or her business. Running a business can be quite challenging at times. The lack of experience running a business does not make things any better. Inadequate experience leads to doubts, questions, and confusion.
Apprehension might lead to mistakes – avoidable mistakes, unfortunately. The truth is that, the extent and nature of mistakes made by most entrepreneurs depend on the specific start-up they are involved in. Common mistakes exist, irrespective of the nature of a business. The following are the top mistakes you should avoid as an entrepreneur:
1. Lack of Backup Plans
Most entrepreneurs work out their process beautifully on paper. However, mistakes do happen. The last thing you want is to be a victim of circumstance. You also don’t want to be too optimistic with your expectations.
Remarkably, most start up entrepreneurs walk into their businesses without bothering about a backup plan. Do not focus so much on your business and forget that things might not work according to plan. Refrain from being like most entrepreneurs who come out having acquired management degrees with flying colors, and believe they are equipped with everything to run a business successfully. This crop of entrepreneurs believes that they can never fail. When this happens, it becomes the start of things going wrong.
With a backup plan, you will be able to keep your company afloat even when things don’t work out according to plan.
2. Lack of Enough Emergency Funds
In addition to lacking a backup plan, the other mistake you should avoid is lacking funds for emergencies. For your backup plan to function effectively, you must have sufficient funds to finance your solutions. Start up businesses involve huge sums.
You might not have put your personal money in your project, but the fact remains that you should use the funds wisely. Always set aside some money for bailing your business out in case of emergencies. Unprofessional handling of financial affairs can lead to losses. In turn, it might prevent one from getting any future monetary help from financial institutions. When you have emergency funds, you have the opportunity to put off foreclosure brought on by your clients who reneged on losses or payment. You do this until the income flow steadies out thus giving you and your company the stability you need to remain afloat.
3. Excessively Focusing on ResultsВ
Entrepreneurship entails maintaining and designing the business flow in a desired manner. It also entails helping a company function strictly on a result-oriented mode. If you as an entrepreneur do exactly this, then you are guaranteed that your enterprise will perform excellently. Consequently, you shall enjoy substantial monetary gains too. Therefore, as opposed to thinking too much of the results, you should strive to work for the results.
Startup entrepreneurs are extremely concerned about getting instant results compared to setting their business model or basics right. Rather than believing in short term results, your focus should be on long-term goals. Initial performance should not worry you much. Actually, you should not measure the performance of your business purely in terms of profit. This is because you end up overlooking the elementary facts of running your company successfully.
For your startup business to be successful, you need an excellent foundation. This includes the right infrastructure coupled with the utmost ability to implement strategies prior to the start of your business. You will certainly hamper the growth of your business by putting too much focus on profit-driven results before your business even leaves the ground.
4. Instability in Pursuing StrategiesВ A great attribute about startup entrepreneurs is the fact that they are more than willing to pursue plans. As a startup entrepreneur, you should aim at giving your business your all. You should not fall into the temptation of wavering anytime you face setbacks and start to look for a different way of approaching a process differently.
The truth is that all startup businesses normally work around and on planned strategies. Your approach might be somewhat different, but it is extremely important to stick to a chosen approach. Refrain from changing your strategies too soon. It always leads to confusion. Instead, solve the problem at hand.
Changing tactics every time you encounter a problem says one thing – you have not done your homework correctly. Change of methods too soon hampers growth big time. This is because you have to begin learning about the new methods before you implement them. Always give your methods some time. Put a little more effort, and who knows, you shall start experiencing the positive results you long for.
5. Relying on Too Many Opinions
If you want to run a successful startup, you should be worried about getting overwhelmed by too many colliding opinions. When you have too many volunteer suggestions, it can definitely lead to lots of confusion, which in turn leads to indecisions. This can be disastrous, especially when you have to make tight call. Whenever you have countless opinions weighing in on your mind, you might end up making split decisions that can come to haunt your business in the long term. It is extremely dangerous for your business.
Granted, you can make most business decisions partially through knowledge and instinct. However, you cannot acquire the knowledge through listening to everyone’s suggestions. Most of the times, it is much better and easier to learn things from experience.
Alternatively, it is an excellent idea to surround yourself with highly experienced business partners that you can trust. These professionals can help you avoid basic mistakes in the course of running your business. For sure, they will always have your business interests at heart. It is extremely hard for them to advise you on actions that might lead to your premature downfall.
There is no doubt that startup entrepreneurs experience an array of challenges. However, the above mistakes are highly avoidable. You can keep away from them by following the tips and guidelines highlighted.