If you know what the most common mistakes made by entrepreneurs are then you’ll have a better chance at avoiding the same pitfalls
The chance to become an entrepreneur has never been more accessible thanks to the internet. There are crowd-sourcing opportunities, peer-to-peer lending platforms, social media platforms that allow marketing campaigns to spring up at no cost and a share button that allows things to go viral. However, launching is the easy part because only around 40% of startups are still around after reaching the 5-year mark.
There are all sorts of reasons as to why business can fail, but if you know what the most common mistakes made by entrepreneurs are then you’ll have a better chance at avoiding the same pitfalls. As such, we have compiled a list of the most common errors made by entrepreneurs to help you become a huge success.Are you making any of these common entrepreneur mistakes?Click To Tweet
Know The Demand
Over a third of all new businesses admit to getting their launch completely wrong because they had failed to get the product or service they were offering right. If you don’t get your launch right then you are going to feel the sting very quickly, and all that hard work you put in could be for nothing. That is where knowing the demand comes in. It is so important that any new entrepreneur researches the potential demand for their business before launching it. Know the potential demand, and know the realistic demand. If you know exactly what your customers are looking for then you’ll be able to tailor your product/service and your launch to that market.
Price Is Right
This is one of the toughest parts of launching a new product. You don’t want to put a price tag on that is too high you won’t attract sales, and you don’t want to go too low that you hurt your profit margins. But the latter is exactly what tends to happen. They under price their product or service. This can be an error that spells disaster for you and your business. The reason for this is simple; you need to have a profit margin that will allow your business to grow, and while you may think that it is fine, you’ll just raise the prices at a later date, all too often this proves to be very hard to do.
Ask any serial entrepreneur – someone that has had failures and successes – and they will tell you that they failed because they tried to launch their business alone (at least 1 in 4 entrepreneurs will). The reason for this form of failure is because not many people possess all the skills needed in launching and building a successful business. That is why it is so important you find a co-founder that has the skills you don’t. It could just be one other person, someone that counter-balances your inability to crunch numbers, your leadership skills, your weak presentation skills, or anything. The more talent, experience, and understanding you have on your side, the better your chances of success.
Way too many entrepreneurs fall flat early on for the simple reason that they never set themselves a sales plan, or they did but they didn’t stick to it. Planning is the key to all success, and sales are what drives your revenue and allow growth. As such, a clear understanding of your sales potential, and how to reach those figures, are going to be instrumental in your success.