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11 Common Mistakes by Entrepreneurs

In today’s world of rapidly growing micro and macro-economic ideas one of the best business strategiesis to become anentrepreneur instead of searchingyour dream jobs. You canplanto become a successfulentrepreneurby acquiring intelligent and progressive business skills.These business skills and techniques will help youto establish a successful and productive entrepreneurship.One of best way to do so isto learn from experiences of successful predecessor entrepreneurs and avoiding mistakes that they had been doing in their business growth history.You should know how they had managed to get out of the tough circumstances by adopting intelligent business plan and strategy.

mistakes

Following are 11 most common mistakes that are done by young and immature entrepreneurs. As an entrepreneur you must be aware of all these and know best techniques to avoid and overcome these mistakes.

1. Visionless Approach

You must think and plan wisely before getting into any business.Setting a clear vision and comprehensive planning behind any business is an essential factor to start it. Keep in mind the long term goals associated to the business, your target audience, organizational structure, strength and well-versed and clear understandable job responsibilities for each emplo 

2. Lack of Financial Planningand Management

As an entrepreneur you must plan intelligently to manage finance related to your business. Avoid all the ways that lead to any sort of money mismanagement and there should be proper professional department or team to manageand record transactions related to the money matters. You must be aware of possible ways and approaches to remain within the financial limits.

3.     Greedy Approach

Every entrepreneur must keep an important thing in mind that setting goal of getting richer and richer by anyway possible is not a wise approach. Although earning money is core purpose of owning a business and establishment of an entrepreneurship. But, it should be within parameters of intelligent thought process related to the overall business process. It means that you should not overlook aspects such as investment on marketing and trust building of clients etc. other than ‘revenue generation’, which can help to promote and prosper your business.

4.     Non-Consultative Behavior

Often entrepreneurs hesitate to consult and seek a professional advice from consultants due to cost consideration. But, this approach is not good as any entrepreneur is a human-being and possibility of making an error at any time.Entrepreneurs can commit serious nurtured business related mistakes at times. Therefore, it is important to admit the mistake at once its identified or highlighted at any stage and do not hesitate to take appropriate corrective measure to correct it.

5.     Lack of Patience

According to the research 60 percent of the businesses remain unsuccessful due to impatience shown by the respective entrepreneurs.Impatience is one of most dangerous factors that do negatively affect and ruin any business. No business can grow overnight in such manner that it starts to generate high revenue and sales on very next day. There is a very famous saying related to this: “A Distance of thousand miles begin even with a single step”. Depending upon the nature of your business you as an entrepreneur need to remain optimistic and experience patience at every development stage and concentrate on doing the best to promote it.

6.     Overlooking Growth Opportunities

Asan entrepreneur you have to deeply research the market and available business opportunities. You must acquire adequate knowledge related to the needs of target group and your potential customers. You should also understand the aspect of price elasticity and regional boundaries associated to your business. Knowledge of your regional and global competitors is an important factor to plan well about your business growth.

7.     Lack of a Brand Development

It is very important to keep yourself concentrated and focused about the development of business related brand. If you will overlook the fact of brand development and keep on doing things to get the job done anyway, it will have negative impact over your business in long run. Brand development helps your potential customers to know your services or goods and what to expect from you while doing business.

8.     Lack of Knowledge about Customer-Base

A very important factor related to the entrepreneurship is to know the nature of your customer base. You should know all the needs of your potential customers thoroughly and find out best methods to address them in an efficient manner. You must have the ability to customize products as per the needs of customers and a very good way to obtain this important knowledge related to the customers is by getting periodic feedback from them. The customer feedback can be used as main factor of policy making related to product development or service offered and improving its quality.

9.     Lack of Execution and Practicality

Sometimes proper business planning becomes useless when there is lack of execution. As an entrepreneur your business planning needs to be followed with adequate and intelligent execution plan. Bight and productive business ideas should be implemented immediately by remaining within the available financial, operational and personal limits.

10.  Unrealistic Forecasting and Projections

As an entrepreneur you must restrict yourself on the realistic statistics, business projections and forecasting. Ideal form of business approach and strategy can be thought out which needs to be translated into real time productivity. You also need to keep in mind all the downside scenarios and always try to remain within your financial limits as discussed in the Reason 10. Try to remain within your personal and operational limits. SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis is a very good way to analyze your business position.

11.  Over budgeting

Budgeting is an important feature before starting any business related activity. The budget should be made by keeping in view all the down and upside scenarios. You should focus on making a bi-yearly or yearly budget depending upon the nature of your business. The budget must be realistic and it should lack with all possible aspects of over budgeting.

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