10 December 2019

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Key Entrepreneurial Mistakes, that shouldn’t Happen

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While setting up any new business, there are several important and critical aspects which an entrepreneur must have to consider. Farsightedness, future roadmap of business, unbiased competitive analysis, right amount of spending on establishing the business and clarity on the business scalability are some of the essential components.

However, in most non successful cases the root cause can be found by examining the initial days of business inception.

For most entrepreneurs, starting a business is an exciting time during which they usually look at the glossy picture of success and tend to ignore crisis preparedness. Some entrepreneurs don’t even want to think and discuss the failure and instead they believe that is only going to be fun in tackling new challenges. This is the time that leads to make lots of mistakes.

Although, positive frame of mind is an essential requirement for an successful entrepreneur and being pessimistic does not lead to any good result. But, preparedness is highly required. So an entrepreneur must have to understand following common mistakes that lead to business failures.

1- Incorporating the Business in a Hurry

The first step for many entrepreneurs when they launch a business is to complete legal formalities for the business incorporation. While incorporating is an appropriate step for many businesses, it pays to wait until your business idea is well formed before taking the plunge. The reason: the concept of your business and therefore the name is likely to change during the first few months of operation.

2- IGNORING MARKET RESEARCH

A frequently overlooked component of business start up is determining whether the target market for your product or service will buy from you. The best way to derive the answer to this question is to ask them. Arrange to speak to as many of your potential customers as possible. Questions to ask include: Would you buy my product or service? Where do you currently obtain this product or service? How much would you be willing to pay for it? What do you like/dislike about your current provider? Where would you look for this product or service when you need it?

3- BIASED COMPETITIVE ANALYSIS

Examining the market in a hurry will lead to nowhere. On top of it, if someone considers his products or services as best in class and ignoring the available market competition. It would be a wrong path to follow.

4- UNCONTROLLED INITIAL SPENDING

A nice office and great computer equipment make many entrepreneurs feel as though their dream of entrepreneurism is coming true. While one of the pleasures of launching a business is setting up an office that you are proud of, expensive trappings have put many businesses out of business before they got off the ground.

Many of the mistakes entrepreneurs make during the start-up phase can be avoided. One of the best ways to steer clear of foibles is to talk to established business owners about what they learned during the process. Ask your attorney or accountant for referrals to business owners who have relevant experience and attend trade association meetings and talk to people in the industry you are entering.

No matter how much research and preparation you do, you will make mistakes when you start a business, but the common errors listed here may help you avoid a few.

Last Updated ( Friday, 16 September 2011 01:15 )  

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