In life, we all have to take risks in order to reach new ground. Being an entrepreneur means being a risk-taker, since one is taking their idea for a business in the hopes that their idea gives them success in the long-run. According to Forbes, 50 percent of all start-ups fail within two years. One reason for why these start-ups failed was due to the pressures of building a start-up through unsure economic times.
However in most cases, the common reason for the failure of 50% of these start-ups was due to costly mistakes that could have been avoided. While it is impossible to predict whether your start-up will succeed or fail, there are crucial mistakes that entrepreneurs make that one can learn from:
Some of which are:
1.) Expecting Fast Results: With the success of various start-ups like the “Yo” app and Facebook, it’s easy to think that one’s start-up will achieve success overnight. However, the type of success that you want to achieve is long-term success, which only hard work and patience can achieve.
2.) Giving into emotions: Whether it’s feeling discouraged after receiving criticism from a business pitch, or being impulsive with business decisions. It’s important to realize that letting negative emotions cloud your judgement and take away from your overall goal of achieving success with your start-up should be avoided.
3.) Failing to lay a solid foundation for start-up: While being enthusiastic about creating and building your start-up is the correct approach, it’s also important to take a step back to create a strong and solid foundation that will sustain your business for years to come. Some of the questions you should ask yourself should be: “Is my start-up team on the same page as far as values and long-term goals?”, “Have I branded my start-up? “Am I expanding my start-up to soon without the funds to support growth?”
4.) Neglecting Importance of PR/Marketing: It’s a great myth to think that just because you have a great idea for a start-up and have created a business out of it that customers will automatically come. Once you’ve put your start-up business into action, you have to get the word out. One way to do this is to realize the importance marketing and pr has on not just promoting your start-up, but also in identifying your start-up’s brand and target audience.
5.) Not utilizing network circle: Whether it’s your friend in high school that you “friended” on Facebook last week, or the list of contacts you’ve accumulated over the years from attending various networking events, these are the same people that can benefit your start-up as potential clients, investors, or as a third-party endorsement for your business.
6.) Waiting until your business is perfect to pitch it: It’s easy to think that you have to perfect every single detail about your start-up before you make your first pitch. However, the problem in doing this is that you might run out of funds before every single detail about your start-up is complete. Instead, focus on developing a great business plan that lists your goals for your start-up that you can pitch to potential investors. Chances are, if investors fall in love with your pitch, they can help you iron out the details of your start-up later.
7.) Picking the wrong business partner: Being in business with someone is like a marriage, because your relationship with your co-founder is a partnership.that can make or break your success as an entrepreneur. Just as you would a romantic mate, take time to select your business partner and get to know them as well. Like a marriage, entrepreneurship has it’s ups and downs and being able to get along with your business partner in difficult times is crucial for long-term success.
Image Via Empowering Nations