Ten Entrepreneurial Mistakes
I work in the startup world and had the opportunity to associate myself with some great entrepreneurs. I also make mistakes like everyone else. The ones I listed below are not exclusive; there may be more out there that didn't occur to me when compiling this list. Nonetheless, these lessons should definitely be learned before pursuing entrepreneurship on your own!
The most important thing is to take the time to think about how you want your business or company to look like. Don't rush into it and think "it will happen" because chances are it won't, at least in a way you would want it to turn out. Write down a list of business models that you think are great, and then write down the reasons why. Analyze the two lists and see which one works for you. I had a product idea that was ahead of its time, but also too unspecific so it wasn't possible to build properly. You can't just skip this step or delegate it to someone else; you need to get involved or eventually your business will suffer for it.
Learn the basics of accounting and finance. It is not an option; it is a necessity. There are tons of resources online for free or for purchase, or you can even use Excel. You'll want to be able to handle your own bookkeeping and accounting, so learn the basics or hire someone who already knows how to do it. Keep in mind that you need to pay taxes on your income, especially if you are not reinvesting a large percentage of it back into the company/business model/product.
Always have a business plan. If you have a plan, then you can define goals, set benchmarks and track progress towards them. But even if you have a business plan, you can still change things as long as it is done correctly. I always remember that a business plan is not an instruction manual. It's not like you can read it, memorize it and then go out and start the company. You still need to involve yourself in the process.
Learn to be flexible and work with the existing people or systems that are already in place regardless of whether you like them or not. I overcame this by getting to know the people/systems that I didn't like as well as the ones that I did. It's great to be passionate about something, but you still need to learn to stop and listen at some point, which is what led me to discover a lot of the information in this article.
Be prepared for a lot of rejection. You'll get it from your friends, family and even in your community if you are a business owner or entrepreneur. Don't burn bridges; it will be beneficial for your business in the long run.
Make sure that all of your associates or employees understand their roles and responsibilities so they can carry them out properly. If possible, hire people that you know personally or can vouch for. The risk of not doing this is lower if your friends and family are financially dependent on the company or business, because you wouldn't want to hurt their financial situation unnecessarily, which would lead to a loss of trust and respect. Also, if your friends/family understand what they will be doing, they'll be able to help you out in ways that they are already accustomed to and possibly make it easier for them to help you out.
Have extremely high standards when hiring employees. Avoid outsourcing unless it is absolutely necessary. You want to be able to make sure that you know how hard your employees work, and that you know how family-oriented they are. You can't always tell by looking at them, but you can definitely see it through the way that they act and communicate. Hiring the right people is a long process; make sure it's worth it and worth investing your time into.
Don't get too comfortable while in your position as an entrepreneur or business owner; always be on the lookout for new ways to grow and ways to improve your business/business model/product. Always be willing to change and adapt in order for your business/business model/product to thrive over time. Try different ways to learn new things and you will eventually find the right way to do things.
Sometimes it will be better to use an outsourced service or product than to go out on your own. As long as you are able to retain the benefits that you can make from the agreement, then it still makes sense. Use what is available, don't always go for what is new and fresh; always look for value over potential growth.
Don't make decisions or take actions when you are tired, hungry, angry or stressed out. That's when people at their worst moment make decisions that may turn out not so great in the long run.
In the end, it's not what you say; it's how you say it. What you think and say is different from how someone else may interpret it. Always make sure that your intentions are clear and be mindful of how your words or actions may be taken by the person or group that you are communicating with.
Make sure to always tell the truth - not necessarily all of the details - but at least don't lie about anything. If there is something that needs to be kept confidential, then tell them what they need to know if it's a necessity for them to know about it.
The biggest mistake I ever made was taking on too many roles in my life at a given time. I should have taken the time to think about what exact roles I wanted to take on, and then only committed to those roles. I let myself get a bit overwhelmed and overwhelmed with other things in my life at a time when I was still learning how to be a business owner.
Understand that you are not free from responsibilities as an entrepreneur or business owner; you're just in charge of certain aspects of your life. Look after your family, friends and community more than most people do. It's not something that you can afford to get distracted by; it will lead you down the wrong path eventually if you don't change the way that the priorities are based on your personal needs.
Don't just do something (or nothing) in the hope that it will lead to something. You are responsible for your own actions and the results they bring.
Be prepared to take a gamble when building your company or business, because even if you lose in the end, you will have gained a lot of knowledge and experience along the way.
The best part about starting a business is that it's also about learning how to become an entrepreneur; how does one become an entrepreneur? We found this great article for those who are interested in learning more about how to become an entrepreneur: http://www.entrepreneur-finds.com/2010/05/how-to-become-an-entrepreneur/.
Conclusion: I hope that you found this article useful. I also hope that you will be able to use the advice provided in the article to become a more successful entrepreneur. Even if you don't start a business or take any action, please remember to share this article with your friends and family members who are interested in becoming an entrepreneur or business owner.
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