1. No focus
This is a very common mistake among first time entrepreneurs. They try 100s of things without trying to focus on one thing at a time. Many entrepreneurs start more than one business at the same time. This is a big mistake. Focus on one business at a time.
2. Failure of the entrepreneur to understand financial statements
Accounting is the language of business. If you can’t speak it, you’ve got to learn it. There is no easy way out. Buying at $ 10 and selling at $ 8 is just not good business.
3. Not having a target market
Some famous marketer said “if your target market is everybody then your target market is nobody.” It’s hard if not impossible to please everybody. It’s important to serve a group of people who have similar characteristics. This group with similar characteristics that you are going after is your target market.
4. Not having a business plan
A business plan helps you evaluate every aspect of your business in an organized manner. Research has time and again proven that businesses with business plans have done much better than businesses without business plans.
5. No written goals
Having written goals that are measurable and have deadlines are more crucial than they sound. Having written goals gives the business direction. Your business goals have to fulfill your personal goals. Remember, the business is there to serve you and not the other way around.
6. Not adequately financed
Many entrepreneurs underestimate the amount of capital that is required. They wake up one day and realize that they’ve run out of money.
7. Choosing the wrong business
Even if you do the above things right, if you choose a business that is not right for you – a business that doesn’t leverage on your skills, a business that you are not really proud to own, something you are just not passionate about, then you are going to struggle.
You’ve got to ask yourself the question “Am I going to have fun running this business for the next 10 years?” If the answer is “No” then find something else. The trick to choosing the right business is not just to find a business that makes you money, but to also find something you love and something you will have fun doing. Check out our article “How To Choose A Business That Is Right For You.”
About the author
Vinil Ramdev is an entrepreneur, speaker and author of several ebooks. He is founder of StartUpGrowthExpert.com – An Online Magazine For Entrepreneurs who want to start and grow extraordinary businesses.
- Common Mistakes That Lead To Business Failure: Part 1
- Choices! Is it the Holy Grail of Failure?
- Business Plan Mistakes
- The critical question to success;Who’s problems are you solving and how?
- Book Review of Richard Branson’s autobiography “Losing my Virginity: How I’ve Survived, Had Fun, and Made a Fortune Doing Business My Way”