Ten Mistakes That Entrepreneurs Often Make

How

1, fight alone.

If you work alone, it's hard to build a large business.

Solution: make sure that you have enough profit margin in pricing to enable you to hire other employees.

2, seek advice from too many people.

It is usually a good thing to get advice from experts, especially those who have established companies and successful and experienced entrepreneurs in your industry.

But asking for too many people's opinions may delay your decision.

The solution is to form a reliable Advisory Committee, you can regularly consult their opinions, but make their own daily decisions.

3, spend too much time on product development and spend less time on sales.

It's hard to create a good company without good products, and even if you have a good product, if you only play a little bit in sales, it can only be sold to a competitor with a strong sales organization.

4, the target market is too narrow.

It is tempting to monopolize niche market, but if the target market is too narrow, the growth of enterprises will soon encounter obstacles.

5, enter the market without the distribution partners.

If there are already agents, brokers, manufacturers representatives and other third party dealer networks that are willing to sell your products to the existing distribution channels, it will be easier to enter the market.

6, spend too much money on customer marketing.

Spending a lot of money on advertising may attract many customers, but if your company can't turn the money into customer lifetime value, then this is a strategy of losing money.

7, too little financing.

Many start-ups believe that what they need is just enough funds to lease sites, buy equipment, store inventories and attract customers.

What they often forget is that they also need money to pay wages, utilities, insurance and other management fees until the company begins to make profits.

8, excessive financing.

Whether you believe it or not, raising too much money is also a problem.

Companies with excess capital tend to be large and bulky, too early to hire too many employees, and to waste valuable resources on trade shows, parties, picture ads and other flashy things.

No matter how much money you raise at the beginning, remember to save some for a rainy day.

9, no business plan.

Although not every company needs formal business plans, it needs a lot of capital to support growth, and start-ups that need more than a year to make profits should carefully plan the time and money needed to achieve their goals.

This means taking full account of the key indicators that enable enterprises to run smoothly, and building models to make three year forecasts of sales, profits and cash flows.

10. There are too many business plans to consider.

Although many of the entrepreneurs I met were making decisions based on intuition instead of doing homework, some entrepreneurs were afraid to act until they were 100% sure that the plan would succeed.

The fact is that the business plan is not a crystal ball that can predict the future.

At some point, you can close your eyes and follow your feelings.