Every businessman and entrepreneur wants to succeed in business. Who wouldn’t, right?
However, not everyone who goes into business ends up a success story. Many businessmen (or women) have ended up with a broken heart (and an empty bank account) because they overlooked a few important things.
7 Things Every Entrepreneur and Businessman Should Avoid:
1. Winging it.
One of the things you need to do whenever you do something is to draw up plans, especially in business. Do not think of yourself too high and believe you’re too brilliant to draw up a business plan.
Even the most brilliant and gifted businessman writes down plans and goals. No matter how overwhelming it might seem, it is better to invest time and effort in it now than pay the consequences of a lack of preparation later on.
2. Taking the advice about “doing what you love.”
In an ideal world, yes, this would be a good thing to do. However, realistically speaking, a lot of people love things they are not really good at.
At the very least, do what you’re good at. If you excel at something, people are willing to pay good money for your products and services.
3. Not putting in the hours to research the market.
Lack of preparation is one of the major downfalls of start-up businesses. A lack of knowledge of both general and domain-specific concerns about the business (operations, finance, marketing, and others) will only lead a business to failure.
A business cannot stand without sufficient knowledge acquired through extensive research and study.
4. Not taking the competition seriously.
Taking the competition for granted is an arrogant mistake you cannot afford to commit. Take the time to check out what the competition is up to and do your best to stay one or two steps ahead. Keep tabs on them so you can make the necessary adjustments to your business so you stand out.
Another thing to consider as far as competition is concerned is market saturation. Is there enough room for your business idea to thrive in your chosen market? Will you still get a piece of the pie?
5. Not having enough money to finance your business.
One of the most fatal mistakes an entrepreneur could ever commit is to go into business without sufficient funding to get it off the ground and keep it stable for the next few months.
Statistically, 95% of businesses won’t make money upon opening. Others have to wait for a few years before seeing a significant profit.
You need to make sure you have enough funding to run your business’ operational costs and support your family while you’re still establishing it.
6. Ignoring the marketing aspect of the business.
Another ill advice some businessmen and women take is this: build it and they will come.
Not true. At least in most cases.
You will still need the power of marketing and promotion to get the word out about your business, especially if you’re a new player. A lot of small businesses are hesitant in investing in marketing and promotions which could lead to their downfall.
You must seriously consider creating a marketing plan and sticking to it. It is also recommended that you market your business way before you open it.
7. Doing business with the wrong people.
If you do business with the wrong people, you might as well just throw your money away. There’s nothing worse than getting into business with the wrong set of partners, especially those with a negative track record from previous involvements.
Be extra cautious about who you deal with. There are plenty of smooth operators out there who will sweet talk the life out of you just to get their hands on your money. When in doubt, don’t hesitate to utilize a sanction screening system to weed out the bad from the good.
Starting a business requires a lot of hard work, time, and money. Don’t let all of these resources go to waste just because you overlooked some minor details. Keep in mind that a successful entrepreneur never ignores anything.