10 common mistakes that ruin entrepreneurs
10 common mistakes that ruin entrepreneurs. A great friend maintains that there are three levels of people, those who work for someone else, those who work for themselves, and those who have people working for them. The best thing, according to him, is to try to reach the last level, having your own business.
The statistics that only 50% of small businesses survive after the fifth year. It is impossible to determine the reason why so many people fail in their projects. But, we can tell you what are the 10 most common mistakes that entrepreneurs make.
- Lack of a business plan that works as a compass in the different stages of the enterprise, taking into account its strengths, weaknesses, risks, and opportunities.
- Being disorganized. Order is essential to be able to work as a team. Rules and routines must be established to maintain control of everything that concerns the business. You can only save if there is an order.
- Neglecting the financial control of the business. All the money that comes into the business must be accounted for and go to the company account, as well as expenses. Create a budget and stick to it.
- Lack of salary. Some new entrepreneurs don’t think about their own salary and take money from the company whenever they need it to make personal payments. The owner must earn a salary according to the stage of development of the business. No more no less.
- Associate with the wrong investor. One of the barriers when creating a business is obtaining seed capital. For this reason, some entrepreneurs are forced to associate with other people. Before doing so, it is essential to know it thoroughly and that the role that each of the investors will play is clear in a contract.
- Choosing bad staff. The most important asset of a business is its staff. If the right person is not hired, the desired benefits will not be obtained.
- Hire full-time staff from the beginning, without having enough capital to pay them, while the business develops. Hiring should be staggered where possible.
- Not putting the correct price on the merchandise or service. Some entrepreneurs think that selling cheap is more attractive to customers. They overlook that selling below the right price can ruin the business. The best attraction may be the good quality of the product or service.
- Do not concentrate on the sale. The fundamental objective of any business is to sell the given product or service. All the tasks, initiatives and strategies that are developed must pursue a single objective: to sell.
- Thinking that undertaking is easy. Many think that “once the store, the premises, or the office is open, customers will queue.” The reality is that getting money in consistently requires a huge sacrifice.
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