4 Mistakes Every New Entrepreneur Should Avoid
As a start-up entrepreneur or new to the business world, you are bound to make mistakes. It’s okay, it happens to the best of us and we all have horror stories.
There are, however, challenges you will encounter that will be quickly and painlessly fixed because you have this list in your artillery solving problems.
1. No Unique Selling Proposition or Competitive Advantage
The Internet has brought information closer and at lower cost, giving billions of people access to resources they otherwise would not have had access to. Much of this information is in the form of inspiration.
Seeing people get into new, trending businesses is a good thing and increases the growth of this industry. However, many of those who choose to participate as beginners copy and paste exactly what other companies are doing.
When you duplicate other businesses, you’re not giving your customers a reason to divert their spending to your business. In the worst case, your business will be nothing more than an advertising company introducing clients to the industry, but sales going to other vendors.
Establishing your unique attribute in the service or product coupled with a strategy on how to deliver that unique advantage gives your business a competitive advantage over other businesses that may come and challenge your business.
2. Not understanding the industry
When entering the industry, you must not only understand the customers and their needs, you must also understand the other companies operating in the market.
Many innovative ideas do not see the light of day because they grossly find out that the industry is already aware of a particular innovation that will bring convenience to the customer, but they do not want it. Many industries remain deliberately stagnant because moving them forward will mean less profit.
For example, black farmers who want to bring cheaper meat closer to black sites find that food suppliers raise food prices to drive out new entrants into the farming industry. This is also seen in the bread and brick making industry.
Before expending energy and time, find ways to work in the industry – even if it’s through volunteering – before you start building in the industry.
3. Not understanding customers
When you think about starting a business, you only have access to a limited number of people. These people can be used to research what they like about your product or service.
This information can improve your offers. However, the problem is that these people don’t represent the general public, and the general public doesn’t have that extra inclination to buy from you like your friends and family do.
You need to grow as you access new people. Don’t overstock or overstock your product hoping for a smashing sales record. Increase supply as demand grows while scaling up efforts to reach new customers.
4. Not hiring the right people
There has never been a successful business owner in all aspects of the business. It is for this reason that you need to invest more in learning interpersonal skills and identifying the right people to build a business with.
Employees can make or break your business. It’s not uncommon to have employees who know the inner workings of your product or service much better than you do, but lack the desire to take on the responsibility of running a business in their line of work.
There’s no shortcut to learning how to hire the right people, especially when you don’t have a human resources professional to help you choose the right employees. Sometimes you will have to learn by trial and error to find your right choice.