A rare employee does not think about starting their own business, but a little more than 20% decide on real actions. Moreover, half of those who still started in business lose interest in their own business as soon as they encounter the first difficulties. We have counted 7 typical mistakes of aspiring entrepreneurs that do not allow their dreams and ambitions to come true.
- Financial: Spending too much or too little
- Strategic: Assume that you have no direct competitors
- Managerial: Betting on low-paid staff
- Superhero: Thinking that you can do everything yourself
- Marketing: Not knowing who your ideal customer is
- Being afraid of criticism
- Simplifying: Trying to look for universal solutions and tips
Financial: Spending too much or too little
The budget at the time of starting a business is often very limited, so making a profit in tandem with austerity becomes a priority. So look for a middle ground in budget management: do not be an unreasonable spender, but also do not spare money for what will bring your business to a good stable income level as a result.
If you are thinking about launching a car rental company and providing high-quality rental services, it is not very rational to spend money on the entourage at the start (merch, souvenirs, expensive business cards, or a premium coffee machine in the office). But investing in the promotion of your rental business in social networks or advertisements about Porsche rental Dubai on local media is a reasonable decision.
Strategic: Assume that you have no direct competitors
The excitement of starting your own business often dulls critical thinking and makes entrepreneurs-debutants think that they have no direct rivals. Or that their product is so much better than its competitors that it occupies a separate niche.
It is necessary to analyze to understand who your competitors are and what their advantages in the market are. Are there any other companies providing rental services in your location? Thus, you will be able to understand not only the weaknesses and strengths of your rivals but whether it is worth opening a business in this area.
Managerial: Betting on low-paid staff
When funds are scarce, there is a temptation to save on employees. The problem with this strategy is that you will end up paying twice as much. Low-cost workers are usually cheap for one reason: they are more likely to be inexperienced, unskilled, or unreliable.
Recruitment of employees is not an item of expenditure on which it is worth saving. Professionals in their field, who, of course, are more expensive – the key to the success of any business.
Superhero: Thinking that you can do everything yourself
Who doesn’t know the certainty that no one but us can do our job perfectly? Of course, you know your product to the smallest detail and, as it seems to you, you are the only one who is enthusiastic to make the business successful. But how long will you be able to pull everything alone?
This is not only a sure path to burnout, but it can also significantly hinder your success. Don’t forget to delegate! Even if you have a very small business, there are always tasks that can be delegated.
Marketing: Not knowing who your ideal customer is
There are many ways to find out who your ideal buyer is – from analyzing subscribers’ pages in social networks to conducting complex analyses. Choose a tool based on your capabilities, but be sure to do it – determine as accurately as possible who your business is aimed at, and who you want to attract. This will help you understand how to promote your product, whether it will be an offer to rent Porsche Boxster or 911, and where and how to develop it.
Being afraid of criticism
When you open your own business, criticism is inevitable – there will always be people who have something to say. But do not assume that comments on your work or products are exclusively negative. On the contrary, constructive criticism is always beneficial – if it is perceived and processed.
Be sure to stay in touch with your customers and listen to their opinions and criticism. Do not immediately despair when you are pointed out to the shortcomings. On the contrary, it will help to identify the disadvantages, work on them and turn them into advantages.
Simplifying: Trying to look for universal solutions and tips
Like any organism, a business has a huge number of individual characteristics – some variables that separately and collectively affect its success. Therefore, the search for universal solutions and templates leads to errors, as if a broken leg was prescribed a course of treatment for gastritis.
If you have decided to open your own business, then this indicates that you are a highly developed person, ready for a serious level of operational stress necessary to maintain the company’s vital activity. And also to be responsible not only for yourself but also for your employees. Weigh the pros and cons, be inspired by the stories of other entrepreneurs, and if you are confident in your abilities, go ahead!