Entrepreneurs live an alluring life. They are the ones who create a job, design new products, come up with innovative ideas, come up with the latest technologies, and much more But at the end of the day, they are human too. Therefore mistakes are bound to happen
As the famous saying says “no one is above mistake”
But one must know that all the mistakes made are not the same, some of them are deadlier, especially in the business
The Business world is very harsh, if they are not careful enough, it can crush their dreams too!
A study shows that 20% of the startups fail in the first year whereas 30% in the second year. Further, it also reveals that 50% of the business will have failed by the fifth year.
No one would want to be in those statics as a failed business.
In this article, we will talk about of some the deadly sins that an entrepreneur makes in his entrepreneurial journey. Read through and make sure you save yourselves and your business from these mistakes
- Incorrect structuring of the business: The age-old business mantra that says “Customer is king” underlines that the customer is everything in the business He/she is firmly in the driving seat. Therefore it is very important to understand who is the ideal customers are and what do they want. A company that puts its customers at the heart of the business experience better customer lifetime value. But this is one of the most common mistakes that an entrepreneur makes. The structure of the business always revolves around themselves and, not around the customers. Their business is self-centric rather than being customer-centric. Therefore, a lot of time, building a great product doesn’t often convert into a successful business because it was not designed as per the customer’s needs. So the entrepreneurs must prepare their structure from the customer’s perspective.
- Not focusing on sales and marketing: The 20/80 rule if followed can give highly effective solutions in the business. Wondering what is the 20/80 rule? The 20/80 rule also popularly known as the Pareto Principle says that 80% of the output comes from 20% of input which means that 20% of the actions give 80% of the result. Therefore in a business, 20% of the action is marketing and sales. Nothing can happen without sales but sales take place only when the business is well structured. Marketing can make this possible. It is the road map to sales. Most entrepreneurs make the mistake of avoiding both marketing and sales. They do not think on the lines of reaching out to new prospects every day. Most of them are not even aware of what works for them and what doesn’t. The entrepreneurs need to learn the aspects of marketing & sales as it plays a very important in a business.
- Business owners want to do everything by themselves: This is very common amongst all entrepreneurs who want to do all the work by themselves in the business. They try to work independently without surrounding themselves with wise people This is the biggest mistake they make. Never try to run a business all by yourself. Structuring a business in such a way that work can still happen without the owner doing it is very important. Therefore entrepreneurs should hire trustworthy people around them who will help them with a lot of things. This leads to faster work and lesser mistakes
- Business owners are guilty of working in the business rather than taking on the business: The research says 60% of the owners work about 60 hours a week. But it is not about the hours. Most business owners work under pressure. They take up all the responsibilities even if they have employees. These long hours tend to pour in other parts of the business as well. As a result of which they cannot focus on strategizing or growing their business. Rather than that they just focus on running it. The answer to this is identifying what is important and what is transactional. The entrepreneurs should focus on coming up with new ideas and strategies and delegate the transaction part to employees. This is the key to success.
- Not focusing to hire the right people in the business: One of the major challenges here is that most entrepreneurs work all by themselves. But when the company grows one person focusing on everything can ruin the work. Therefore it is very important to hire the correct set of people. The other mistake they make is hiring too soon. Different skills are required for different kinds of work. One should never hire a generalist when they need a specialist and a specialist when they need a generalist. Also, every entrepreneur should remember this policy that says “Hire slow Fire fast. This means the hiring process should be slow, they should check if the candidate is ideal for the company or not. Next even after 1 month of hiring if the entrepreneur feels that the employee is not suitable for the business they should fire fast. This is the key to sustainability and growth.
- Business owners work tirelessly but without any aim: Most of them claim that they know and understand the importance of the goal to achieve success. But 80% of them don’t even set the goal. What is even more surprising is that 70% of the people fail to achieve that goal. But the key to achieving these goals is breaking them into actionable steps which means making the goals more precise This helps in aiming better and achieving faster.
- Business owners do not invest in self-development: One of the important things that most of them forget is focusing on self-development. They think they know everything. But this is a myth. They undervalue the idea of developing their skills and personality. In today’s time investing in self-development is one key to being a successful business owner. Self-development helps to expand their horizons. It gives them time to look back and reflects on what mistake they have made and how can avoid or do better. They should focus on different pieces of training, workshops, and much more. This keeps them updated with the latest technologies which in turn can benefit their business. So those who think self-development has nothing to do with business should re-consider your thoughts and approach.
Self-development is one the most powerful tool when it comes to growing a business faster and better.
There the bottom line is that business is not just about the entrepreneur rather it should be about the customers and working with good people around you. The mistake is an important part of a business but it doesn’t mean it should be repeated all the time.
Hope you have got immense value and have understood what it takes to become a successful entrepreneur.
PRO-TIP
If you liked it do share it with your friends and family. Also do let us know in the comment section below which of the mistake you have made and never realized it. Feel free to share your thoughts with us.