Business is a field where all the decisions that one takes, the path one chooses to follow, and the ideas one implements as strategy, are prone to mistakes and errors. Entrepreneurs often make mistakes that sometimes cost a significant damage to the business. However, this can be prevented to a great extent by being careful.
Sometimes people find the same business plans or strategies, working against them, which clearly brought them success in the past. A lot depends on the factors and circumstances surrounding the business. Here, we will discuss seven horrible mistakes which entrepreneurs tend to commit at one point of time or other.
- Failing to plan the expenses
Money i.e. capital is the most important requirement in a business setup. Money speaks and this statement is very much valid in entrepreneurship. An entrepreneur needs to be smart and careful while investing in their business. While it is seen that too much capital investment has lead to not getting higher or equivalent return on investment, there is also this scenario, where a business is facing difficulty owing to less investment.
A smart businessman needs to figure out the critical areas or factors of his operation. Then he needs to prioritize them, and then spend on them accordingly. Spending on the right and necessary areas will always bring back healthy returns.
One of the much-needed areas of money spending should be on their employees in the form of employee benefits. This will keep them loyal to your business and will ultimately help in its growth. Employees should work freely and they must unceasingly avail important benefits like deducting their business miles and other tax benefits.
- Being scared of failure
This is one of the biggest reasons why a business venture fails or does not start at first. Most people are concerned about the probable failures. This scares them off and they tend to commit mistakes like not taking brave steps, adopting newer strategies and implementing different ideas as all of these seem like a probable risk factor to them.
However, to run a business smoothly or for starting a business one needs to be brave-hearted. One has to take risks and bold decisions in order to be successful. So, being scared of failure does not help much while operating a business venture.
There is also the factor of bad reviews from customers. Businessmen fear bad reviews, as it can hold back their operations. They need to learn how to reply to bad reviews and face them confidently.
- Under-utilizing social media platforms
Today the world has developed a lot, than what was the scenario a few years back. Businesses have evolved from the old school setup to being on the digital or the virtual platform. As a result of which, social media platforms are a common thing today. In fact, you will find almost the entire population of the Earth is on the various social media platforms.
What it has done significantly, is that it has brought people closer than earlier times and hence, it has provided businesses the opportunity to showcase themselves and their offerings to more people. Social media marketing is a great way to make people aware of a business venture and what it has to offer.
However, there are many entrepreneurs who like the conventional approach and are hesitant about the social media utilization. This is a grave mistake in modern day business world. They should accept the utility of the social media platforms and utilize it fully to increase their customer base and sales figure as well as to reach the target they are aiming.
- Underestimating competitors in the market
Confidence is good. Confidence along with the right knowledge and hard work can take a businessman to the peak of success. What may bring them down on the way is their over-confidence and underestimation of certain things. One of them is the strength of competition in the market.
Unless an entrepreneur develops something unique or rare, he will always find some competitors. Most of the businesses tend to make the mistake of under-analyzing their competitors and their strength and work with the ideology that their offering has no competition from anyone.
However, the truth is, whatever product or service it is, there is always some direct or indirect competition available to them. It’s always a wise thing to have the much-needed knowledge about one’s competitors, before divulging into the business or investing in the venture.
- Setting unattainable goals
The goals of a firm always determine their success and future to a huge extent. However, this is an area where most businesspeople do not focus on to a good extent. Every business should have a firm and fixed goal. But what is most important here, is that the goal should be such which is attainable and reachable.
People investing in business ventures are so captivated by the idea of earning profits and making a name for themselves, that they tend to work hard and invest heavily in goals that are unrealistic and unattainable. This becomes one of the main causes of their failure. This article brilliantly showcases how setting unrealistic goals creates a culture of failure in an organization.
- Thinking everything can be done single-handedly
This is one of the most common mistakes that many businessmen commit while operating their business. They think, since they have a good idea about their offerings and the market as a whole, they can run the business by themselves.
They fail to understand the need for experts, experienced people, and advisers for the business. This leads them to commit mistakes in the operations, resulting in closure of the business. A business cannot be operated single-handedly and there is a requirement of specialists or experts.
- Not being customer oriented
Every businessman should be working with the mindset of being customer-oriented and their primary approach should be to satisfy their customers. However, it is often seen that businesspeople mostly work with the sole aim to make profits.
In the process, they forget about their customers or simply do not care about them. This leads to negative customer responses and after a while, the business starts losing its glory, and its longevity becomes a big concern. To understand the importance of being customer centric, keep on reading this article.