Launching a business can be one of the most thrilling and fulfilling things a person can do, but it can also be one of the hardest. Many first time entrepreneurs get caught up in the excitement and think their passion and creativity will lead them to success, only to make simple mistakes that can slow them down, or halt them altogether. Here is a list of the seven most common mistakes new entrepreneurs make, and ways to prevent them.
1.Failure to Conduct Market Research
One of the most common mistakes new entrepreneurs make is starting a business without a solid understanding of their market. They assume that if they build a product or provide a service that they like, future customers will follow suit. The truth is, great businesses start with research: defining target audiences, studying competitors, and testing demand are all components of a research-driven approach to business. Even the best ideas will flop without research to get them off the ground.
Tip: When you think you have a reasonably good idea, start talking to potential customers. Test your idea on the market before you invest too much of your time and/or resources into it.
2.Attempting to do Everything Yourself
Often times, entrepreneurs wear many hats at once: marketer, accountant, manager. While occasionally, the ability to perform multiple tasks/roles will work in the beginning phase of the business,
continuing to wear many hats can lead to burnout and poor decisions.
Develop a network of support. Bring on an employee or partner with a skill set that puts you in a position of strength.
4.Neglecting Financial Management
Issues with cash flow are one of the leading causes for why startups fail. Many new entrepreneurs underestimate expenses, overestimate income, or simply don’t track their finances closely. Bad budgeting and a lack of financial planning can bury your business very quickly.
Tip: Make a realistic financial plan to follow, note your expenses regularly, and consider speaking with an accountant or financial advisor
5.Trying for Perfection Rather than Progress
Many entrepreneurs delay launching their new venture because they are waiting for perfection. This pursuit of perfection is a waste of time and does not allow you to gain important feedback from real customers.
Tip: Adopt a “minimum viable product” (MVP) mentality. Launch early, learn quickly, and develop from there.
6.Underestimating marketing and sales
Many people think that if they have a great product, it will sell itself. Unfortunately, even the best ideas need to be marketed effectively, and a clear sales plan. If your target customers are not aware that your product exists, it will not sell.
Tip: Develop a marketing plan, invest the appropriate amount of time and money marketing the product, and sell. Use social networks, networking, and content marketing to reach your customers.
7.Underestimating the Value of Networking
Sometimes new entrepreneurs prioritize their product and overlook the importance of building relationships. Networking is essential for creating partnerships, mentorships, funding, and receiving valuable advice.
Tip: Go to industry events, join online communities, and connect with other entrepreneurs. The early investment in relationship-building will serve you well in the long run.
8.Quitting Too Soon
The journey of being an entrepreneur is not easy. There will be setbacks, there will be rejections, and you’ll encounter the unexpected. Some new entrepreneurs will take their first slow months or one weak customer engagement to mean, “this isn’t working. I’ll give up.” Note: those that are able to persevere in challenge will be the team that succeeds in startup.
Tip: Brace yourself for the challenge, and expect difficulty; it is part of your journey. Learn from the challenge, add complexity to the challenge, solve, refine, and continue.
The Power of Personal Branding for Small Business Owners
In the rapid-paced digital world we live in today, small business owners are up against fierce competitors—not just competitors in their community, but from huge brands around the world. Though it may feel like it’s going to be impossible to stand out, one fantastic tool can change it all: personal branding. When you build a strong personal brand, it will allow an entrepreneur to build trust, earn new clients for life, and establish themselves as an authority in their industry.
What is Personal Branding?
Personal branding is the act of identifying and marketing what sets you apart—your talent or skills, values, personality, and distinct story. It’s the way you present yourself to the world and how people perceive you. For small business owners, a personal brand should go beyond a logo or the name of a business; it’s the human thought process behind the brand that results in a relationship.
1.Builds trust and credibility
People buy from people they trust, and a person with a well developed personal brand will instill client confidence in both their expertise and integrity. When they can place a face to the story of the business, they will become much more likely to engage or to mark that client for a lifetime.
Tip: Story-telling—share the journey, your values, belief and love for your work. Authenticity can lend credibility much faster than advertising.
2.Sets You Apart
In a busy environment, it can be difficult to stand out, and personal branding can help. Almost everyone you are selling to is making similar products or providing the same services. Knowing your unique path and individual story can give a customer reason to favor you over a competitor.
Tip: Think about your strengths, values, and what makes you different. Use those characteristics in all your marketing and communication.
3.Elevates Your Reach and Influence
A strong personal brand helps you generate attention—not only from customers, but also from partners, potential investors, or members of the media. You’re creating or curating material to highlight your area of expertise on social media or blogs and find yourself speaking publicly about your area of thought leadership or expertise.
Tip: Make a consistent effort to create and share valuable content that educates or inspires your audience, and remember that consistent content turns you into a source of influence and awareness.
4.Reinforces Customer Loyalty
Customers are emotionally connected to authentic stories. When your audience believes they know you as a person, they are willing to support you as a business for the long haul. In a sense, it converts a customer from a one-off buyer to a loyal fan who remembers and shares your name and product with others.
