6 mistakes entrepreneurs often do and you can avoid
Regarding to different articles about common mistakes entrepreneurs often do, I put the most interesting ones together in a short list.
1. Putting too less cash aside
The timeframe between getting started and starting to make profit often varies. We need to put aside enough cash to be financially secure even though the startup doesn´t start to make profits as expected. It can take quite long before a startup gets momentum.
2. Being too optimistic
Once we have born a “baby”, some of us tend to fall in love with the own idea. This is great for being passionated but can lead to being not realistic and objective enough. It´s always great to have a Devil´s Advocate who gives us honest and clear feedback – and throws questions about the obstacles, risks and downside of an idea.
3. Spending to less time with the business concept/plan
In my eyes a 15 pages business plan isn´t that neccessary for getting started and building a great startup. But it is important to have a look at all the different aspects a normal business plan is about. How do we make money? What are our revenue streams? What are our actions for the next one, two and three years. Do we have best practises in the market?
It´s also very important to set up a strategy how to growth the company in the next years. It´s always good to think the big picture instead of limiting ourselves. Adding new features, going international, expanding the compandy, changing the pricing strategy and so on.
4. Saving money by doing everything on our own
We need to ask ourselves what our core tasks should be. Delegating work – even though if it costs some money – saves us a lot of headache and a lot of time. In my experience it´s wasting energy and focus working on 15 different tasks at the same time. By focusing on our core tasks we can be more productive and efficient. In the first place we “lose” some money for the people we pay for doing some of our tasks, but in the long run we get way earlier some momentum and get things done way faster. -> the timeframe between getting started and making profits shrinks.
5. Getting started at half speed
Every entrepreneur needs to be ready to work hard and long. You can´t be successful as a parttime entrepreneur and you can´t be successful being only partly focussed. Once the decision for a startup is made we need to go full throttle.
6. Being under- or overpriced
We need to do intensive research in our branch. A lot of entrepreneur tend to set up cheap prices for their service because they are afraid no one will book/purchase. Some others are completely overpriced because they overvalue their “innovation”. Setting up a pricing strategy takes a lot of research, work and market testing.
Having these mistakes in mind we can reduce some risks and prevent a lot of headache.