10 Things New Entrepreneurs Are Doing Wrong

10 Things New Entrepreneurs Are Doing Wrong

by Satish Gaire April 04, 2019

There are plenty of businesses that fail every day, and they often don’t get the same kind of exposure as successful businesses. A company may have failed because they created a product wasn’t in demand, for example, or because they targeted the wrong demographic.

However, there are still some new entrepreneurs that are inexperienced who are making some grave mistakes with respect to their company or startup. Here are ten things that new entrepreneurs are doing wrong.

1. Unrealistic Goals

We all hope that our company succeeds, but it’s very easy for a new entrepreneur to overestimate what their company will do. Yes, you may be excited about your product, but is the market?

New entrepreneurs might believe that their company will be an immediate success. However, they may find that it is much more of a “slow grind” than they ever could have imagined.

Entrepreneurs might think that $1 million in sales is “easy” because of how much they love your product, but seasoned entrepreneurs understand that reasonable goals are the way to go. The journey of a company takes time, and success isn’t instant.

2. Too Many Chefs

There are many startups that are successful, but it’s because of a focused vision. Many new entrepreneurs believe that they can launch a startup with ten of their friends, only to find that many partners aren’t pulling their weight. As the saying goes, there are “too many chefs in the kitchen.”

If there are too many partners in a company, it often means that it takes a long time for decisions to be made, and processes to be approved. This could prove fatal for a company of any kind.

3. Missing Social Cues

There are some that are more emotionally intelligent than others, but we are all human. There are bound to be disagreements and clashes when it comes to your company. However, are there certain employees that simply don’t get along whatsoever?

New entrepreneurs have to realize that “not getting along” can definitely hurt a company’s culture, and should nip this problem in the bud. If you can pick up on personality clashes, it might end up saving you a lot of time and money in the long-term.

4. Perfecting The Product

There are entrepreneurs that might consider themselves perfectionists, and never actually want to release the product. They might be too busy tinkering with features or figuring out the marketing campaign that will work the best.

Often times, another company ends up launching a similar product in this timeframe, and “perfecting the product” means that the company has basically stalled and failed. New entrepreneurs should realize that waiting too long might mean failure.

5. Equity Envy

A company that will become successful requires that people be on the same page. However, if there are some individuals that are constantly concerned about how much of the company they own – it can lead to real uncomfortable conversations.

It’s best to get these conversations out the way and make sure that everyone understands the situation. If a company is going to be successful, there can’t be constant jealousy and/or envy.

6. Not Enough Profit

The world has changed tremendously over the past few decades. There are social media companies that don’t charge users a dime that have reached valuation in the billions, for example.

Of course, this business model doesn’t work for everyone. New entrepreneurs are often concerned about providing value and don’t think enough about profit margins. After all, profits keep the lights on – and this cannot be downplayed or ignored. You might think that a 10% profit margin is fine, only to realize years later that you should’ve been focusing on a 20% profit margin.

7. Underestimating Competition

New entrepreneurs are often so excited about their concepts or ideas that they truly believe that there is no competition. Of course, it doesn’t matter what sector you plan on dominating – there’s a good chance that there is direct competition, or at least indirect competition.

New entrepreneurs should research the competition and try and get some more unbiased perspectives about competition. This can certainly help them gain market share, fend off competitors, and adjust accordingly.

8. Obsessed With Saving

Yes, everyone wants to save money. There are plenty of people, all around the world, that don’t need to own a business to understand why saving money is important. However, when it comes to business, those who cost the least often cost the least for a reason.

If you are hiring the cheapest employees, you might realize that it was a costly mistake (pun intended) in terms of progress.

9. Marketing As An Afterthought

Yes, “word of mouth” can be a great tool when it comes to spreading the word about your company. However, new entrepreneurs really should understand that there’s a reason why some of the most powerful companies spend millions annually on marketing. It works.

Even if you have the most incredible product or service in the world, it takes marketing to get the message out. Consumers might want your product, but need to be educated about it. New entrepreneurs should understand that marketing is much more than an afterthought – it’s a way for consumers and customers to know about you.

10. Thinking You Are Superman

Entrepreneurs are often confident people, and they should be. It takes a lot of courage to invest in yourself, and spend time and money creating a business that may end up changing the world. However, you might also believe that you can do everything on your own. This would be a fatal mistake.

There is a saying that “teamwork makes the dreamwork”. It doesn’t matter whether we are talking about Google, Facebook, Apple, or any other successful tech company – it took much more than one person for these companies to succeed. Even if the company is associated with one visionary, delegation is extremely important.

There’s a good chance that you will end up completely burning out if you think that you can handle every role at your company. You might be the CEO, but this doesn’t mean that you can also be the CFO, CTO, marketer, accountant, and secretary. This is a recipe for disaster, and new entrepreneurs should understand that this is the wrong approach.

It’s definitely tough to be a new entrepreneur. You might feel confident about your vision and strategy, only to find that both are extremely flawed. While it might be tough to understand that you are doing something completely wrong – the quicker that you realize this, the better off your business.

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Satish Gaire

Satish Gaire is an internet marketer and entrepreneur. He is known as the “King of SaaS” platforms in the industry. In his 10-year career, he has launched over 700+ software products online. These software has helped millions of people worldwide operate and expand their business.

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