Common mistakes of new Entrepreneurs

When it comes to starting out as an entrepreneur or launching a business there is no formula or fool proof plan - certainly no magic blueprint for success. However, there are several common mistakes that unnecessarily move many entrepreneurs off the road to success and onto the dreaded path of failure. Here are the most common mistakes made by entrepreneurs and advice on how you can combat them:

Not mastering the 'four point business triangle'
If you have an idea for a company you want to start, you will need to do many different jobs to make the idea work.
You must get organized. Sometimes you need to be a boss, sometimes you need to be a bookkeeper, sometimes you need to produce a service or product for your customers and sometimes you will need to do marketing and sales. No one person is good at all four parts. This is what I call the four point business triangle.

Incorrectly valuing your company
When you evaluate the company, you can use the value of the company as an asset, which is really like cash. Most new entrepreneurs think the value is equal to sales. Not true at all.

My teddy bear company had sales of 20 million, but the value was 100 million because investors were willing to pay 20 dollars a share for the stock. The company had 5.5 million shares of stock. It’s important to know where the real value is to be found. 

Picking the wrong market to enter

It’s very important for you to know the market size, the market segment you want to target and need for your product or service. It is also equally important to know your competition, their strength and weaknesses. These would help you to evaluate whether there is a strong indication of needs in the market for your product and/or services.

Failing to think like a company
If you incorporate your business, then thinking like a company would help you become a more successful entrepreneur. When you incorporate, you can use your shares as well as sell to investors that are interested in partnering with to make your company a successful.

Trying to go it alone
Most new entrepreneurs think they can learn everything themselves using a few clicks and tricks. For example, some entrepreneurs, when looking for help to increase their sales or income, ask their Google search engine for answers. They get page after page of information but no adviser to help them turn that information into knowledge. This is a big mistake and will end up costing entrepreneurs wasted time and money. Every entrepreneur should have a trusted adviser, whom they can call on the phone, on a video chat or an email to ask question(s) anytime you are at a crossroad.

A trusted adviser will help you get to your goals faster, especially when they’ve travelled the path to success you want to travel. A proven adviser can help you get to your goals, because chances are at one time your current goal was their goal that they reached!

By Mychal Connolly