4 Common Mistakes New Entrepreneurs Make (And Solutions)
When working on a business venture, there are various common mistakes new entrepreneurs make. It is crucial to realize the entrepreneurial process.
According to The Daily Times, over 90% of startups wind up as a failure in their first year in Pakistan.
Moreover, it is important to have a good knowledge of various entrepreneurial skills. Successful entrepreneurship involves a combination of:
2. Hard work
4. Innovative thinking
5. A clear knowledge of the business industry
Understanding the entrepreneurial process can help young entrepreneurs develop their aptitude. They can gain knowledge, and foster creative business ideas.
The entrepreneurial process involves identifying a setback and finding solutions to it.
This requires research, innovation, consistent learning, and creative thinking. Corporate entrepreneurs have their own unique set of challenges. They require various sets of potential, but the process is still the same.
Common Mistakes New Entrepreneurs Make
Mistake 1: Product Focus Only
Entrepreneurial ideas have a primary emphasis on the product or service instead of an all-round emphasis.
Regarding product development, many entrepreneurs spend too much focus on their products’ cost.
They do not have enough attention on the other operations of their business.
This can lead to an unbalanced and inefficient business model., and, here the product gets overexposed.
They don’t consider elements, such as marketing, customer service, etc., until later.
Moreover, this can lead to cash flow hiccups as the business grows.
When we asked our COO, Mr. Faizan Mahmood, he had some useful solutions for repeated mistakes entrepreneurs make:
A defined process can help business owners frame a successful business plan. It should include market analysis, financial forecasts, and operations planning.
- Standardizing the core processes and business operation help ensure efficiency and scalability.
- Ensure that the resources, budget, and staff are always in place.
- Have a plan for each business element, and set milestones. Also, ensure that each operation works harmoniously with the product.
- Develop a comprehensive marketing plan. It should include product development and considers all other operations necessary for success. This can include:
- Researching the competitive landscape
- Acknowledging customer needs (making customers your friends)
- Creating a detailed sales and marketing strategy
- And developing plans for customer service.
Mistake 2: Wrong Hiring Decisions
With the right people, a business can make great progress easier and faster.
Young entrepreneurs often overlook the importance of having effective and reliable group.
Any resource that joins you must have the ability to contribute to the company’s business. And while you may think to add a valuable resource to the staff, they must be willing to starting a career in that role.
With talent and passion for work, individuals can carry on the mission of the company.
With an incapable force, most of the time is spent into fixing issues or closing things up. They do not read between the lines, and end up messing the processes that regulate the business.
While this may seem like an efficient way to go about things, it can be costly in the long run. There is less margin for mistakes in entrepreneurship as the stakes are often high.
Mr. Faizan has been incorporating this quote in his role of entrepreneurship:
“Am I building people, or am I using people’s skills in building my dreams?
Fortunately or unfortunately, people like to work for big brands like MNCs. And they leave startups as soon as they get an offer from a well-known brand.
Small businesses have difficulty getting the talent they need. They may struggle to find the right people. In the entrepreneurial process, shaping relationships lie in empowering others to reach their potential.
That’s why setting up a good strong force is necessary to be a successful entrepreneur. Start with hiring the right people for the new job.
Some ways to ensure you are forming an effective squad:
- No cost-cutting when it comes to hiring. Investing in high-quality talent will help you produce something greater than its parts.
- Design a culture of collaboration and creativity. Encourage members to contribute ideas. Listen to others and work together as a united front.
- Hire the right mix of skills. Look for individuals with complementary strengths who will work together.
- Support career development and training. Invest in your people to ensure they have the competency and knowledge to succeed.
Mistake 3: Lack of Problem-Solving
In the words of our mentor, Mr. Faizan:
“We love to complain but do not know what to do to rectify the situation.”
Entrepreneurship has a role in economic development. And business founders need to be able to identify obstacles and develop solutions.
In the struggling phase of any business, personnel encounters different challenges and advantages.
Thus, they need to avoid the common mistakes entrepreneurs make with due diligence.
An entrepreneur needs to know how to take advantage of possibilities.
They must also know how to overcome obstacles that may come into their business path.
Our Managing Partner, Mr. Faizan proposed and shared the following pieces of advice, which are the best problem-solving techniques:
Shortcuts will not cut it. To solve the common mistakes new entrepreneurs make, they need to learn to come up with long-term solutions. They must be willing to dedicate their time and effort to the same.
- First, entrepreneurs must identify the complication they are trying to solve. They must also identify what resources they have at their disposal.
- Second, entrepreneurs must start researching their solutions. They can look into what has worked for other businesses in the past. This can provide valuable insight that could save them time and money in the longer run.
- Third, entrepreneurs must consider the financial implications of their decisions. They should ensure that they can sustain their businesses over time. It is important follow the pricing and cash flow management process to remain profitable.
- Fourth, entrepreneurs must not be afraid to take risks. They must be creative about entrepreneurial business ideas.
Entrepreneurial opportunities are everywhere. A successful entrepreneur knows how to spot them and make money from them.
They know the market, the competition, and their strengths and weaknesses.
Mistake 4: Absence of Values
Values and beliefs drive successful entrepreneurs and are one of the common mistakes entrepreneurs make in discipline.
When it comes to starting a new business, it’s mandatory to define what those values and beliefs are.
Doing so will help entrepreneurs focus on their goals and narrow their options. Benefits of entrepreneurship include:
- Improved quality of life
- Increased chance for self-actualization
- Improved job satisfaction
- The ability to take risks and achieve big financial goals
- Creating something from nothing, trying to make a difference in the world, and more.
Thus, values should be at the core of an entrepreneur’s decision-making process.
To ensure the whole business abides by these values and ethical points, entrepreneurs must operationalize them. These solutions could start from:
- A mission statement that outlines the business’s long-term objectives and purpose.
- An organizational culture that pays for openness and transparency.
- A good customer service strategy for customer satisfaction, which matters greatly.
- Monetary goals that promote economic growth and buying for employment.
- An employee engagement strategy to ensure workforce learn to be efficient, and gets inspiration and motivation.
Entrepreneurship must form solutions for social and environmental challenges. It involves establishing sustainable business models.
These models must aim to provide benefits not only to stakeholders/ investors but also to the wider society.
Entrepreneurial Example – Emerald Labs
Since its inception in 2019, Emerald Labs has incorporated a live and successful business model.
We have successfully identified and implemented the most innovative solutions to technological difficulties.
We operate in the US market and have understood the dynamics of businesses there.
Emerald Labs has developed an efficient business model by subtracting monotonous and ethically wrong business methods.
There is no tolerance for politics or biases. We have recognized inventive solutions presented by startups and established companies alike.
Work-life balance is a priority at Emerald Labs. We strive to establish an environment that meets employees’ needs and make sure they are growing.
There is no tolerance for harassment or discrimination. The guaranteed legality of business is through a process of quality assurance.
In the Words of Mr. Faizan:
“I want to build people in their lives and help them grow through their work.
I also want to ensure that our team works with the highest standards of integrity and reliability.”
The experimental approach is one of the most important expertise and values at Emerald Labs.
It encourages its members to think beyond what is feasible. Thus, they take calculated risks and bring in innovative ideas.
This way, the members can explore different options ending hurdles in an innovative manner.
All in all, Emerald Labs is a successful example of an entrepreneurial business.
It shows how to avoid repeated business mistakes , that make them fail and the investors back off.
The company has achieved success through a commitment to excellence. This includes a willingness to take risks when necessary.