10 mistakes that are peculiar to all entrepreneurs
When starting a business, one often faces many difficulties: it is necessary to compete with other “novelties”, one has to draw up a business plan, look for an office, select employees, think over an advertising campaign. This list is endless. And this is not affecting the issues of financing.
To help make sure that your business is ready to start, Startups offers to get acquainted with the ideas of some entrepreneurs in the UK. Describing common mistakes that many had to face at the beginning of their work can help you avoid them.
1. The lack of a clear business model
Arnaud Bertrand, co-founder of HouseTrip:
Too often, entrepreneurs tend to start to give up their ideas, faced with the first troubles and incomprehensible algorithm of work. Thinking that they can adapt in everything easier than others, they make a big mistake. The best companies know exactly what they want to achieve and what they need to do on the way to the goal.
2. … along with attempts to do everything at once
Lara Morgan, founder of Shortcuts:
There is one common mistake – many do not have a specifically formed goal. To become the best in your field, you should decide on what you want, direct all your strength to this and not be distracted by anything else.
3. Starting a business without prior market research
Martin Dawes, founder of Coffee Nation (now Costa Express):
Entrepreneurs receive too many offers from customers and, based on this, start their own business, although they still do not fully understand the principles of work. This, as a rule, does not lead to anything good in the future.
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Dessi Bell, co-founder of Zaggora:
The main thing is to try to launch at least a trial product or service, thanks to which you will be able to experience the market and collect more reviews in a short time.
4. Investors do not understand the essence of your plan.
Sofie Transchel, founder of Divine Chocolate:
If you try to get funding from people who do not quite share your point of view, this may adversely affect the realization of your original idea.
5. Insufficient funds
Paul Curry, founder of Lakes Distillery:
There must always be a balance between your interests and real possibilities. Make sure you have enough money to create exactly what you have in mind.
6. Failure to put together a good team
Chris Morton, Lyst co-founder:
Entrepreneurs often cannot find a compromise in team building issues. This can lead to negative consequences, as they will attract people who are not particularly interested. And, as a rule, the best want to work with the best.
7. Fear of transfer of control
Stefano Marusi, Vice President, GoDaddy EMEA:
Being an entrepreneur is much more difficult than just a manager. The ability to properly transfer authority to other people when an organization has grown to a certain scale is a tough challenge for those who have built a business from scratch. This moment is often very emotional.
8. Savings on staff
It is extremely bad when it is impossible to hire good specialists without additional financing of the business. If you create a mediocre team, you may encounter problems that will take time to solve. And instead of developing your enterprise, you will be engaged in completely different tasks.
9. Hope for instant success
Philip Lets, founder of the blur Group:
We saw this in the era of the first Internet enterprises and we see it now, when various companies appear and immediately disappear. Initially, you need to decide what you want to achieve in the long term. Companies that are well able to establish themselves at the dawn of their activities are more the exception, usually they are just ambitions of entrepreneurs.
10. Attempts to do everything yourself
Michel Closair, Livity Co-Founder:
Entrepreneurs should be careful not to overload themselves, but lead a normal balanced life in which there will be not only business. Running your own business requires a lot of responsibility, strength and energy. Even if you are just starting, it is worth remembering that in life there is a lot of things besides work.