Although it’s common for business owners to seek out advice from experts as they attempt to launch and effectively run their businesses, there are 10 big mistakes that entrepreneurs make, that should be avoided.
1. Skimping on Expert Advice – Gather advice from experts before you decide! The more information you have about a decision, the more likely you will make the right one.
2. Learning from other people’s mistakes – Study failures to find success. You will save money and time by learning about other peoples mistakes.
3. Know Your Competition – Study the competition. They have spent money and time to develop their business model. If they are successful you can learn from their success, and their mistakes.
4. Not spending enough money on marketing – You can have the best product in the world, but if your customer is not aware of it, there will be no sales. Earmark at least 20% of your budget for marketing.
5. Wearing too many hats – Delegation is the secret of dynamic leadership. Empower your staff and your company will grow.
6. Paying themselves last. – You must have a stable income or you will not succeed. Always pay yourself first.
7. Selecting the wrong management team or partner – 1 of the top reasons a company fails is poor leadership at the top. Pick your partners and management team carefully.
8. Spending money on the wrong things. – Measure twice, Spend Once. Make sure you don’t waste a penny. Focus on paying for success. Spend only for the products and services that directly impact sales / growth.
9. Over or undercharging – This is where studying the competition pays off. The price points you set should be in line with the competition.
10. Little to no goals. – Every single day start by setting 5 goals for the day. Keep a running list of short, medium, and long term goals and then update your daily goals accordingly.
Many business mistakes that entrepreneurs make can be avoided with a little wise counsel. Mistakes can result in liability issues, where business owners can be sued for making poor choices or simply for being negligent.
