Mistakes Entrepreneurs Make in Business

Becoming an entrepreneur is a scary proposition; a daunting task to most.  Even if you’ve got a great idea, prepared a business plan, secured financing and are ready to launch your new venture, there are often missteps that will be made along the way.  Here are some of the biggest mistakes people make when starting a new business.

Sticking with one idea for too long.  While a single idea can be your catalyst for entering the market, you shouldn’t be afraid to build upon it and explore new options.  An entrepreneur should always be thinking about growth.  While you don’t want to get ahead of yourself, you should think about where the market is headed at every turn.  Stay open-minded and explore new ideas.  Put them out into the marketplace and see if they stick.

Being product-driven not customer-driven.  Every entrepreneur must remember that “in the world of capitalism, the customer is king.”  Even if your product is better, stronger and smarter than anything else out there, your customers won’t buy it if they don’t want it.  Make your customers a priority.  Ask them what they want.  Do your research.  Understanding your customers’ needs should be your first priority.

Spending money before you make it.  You need to have a well thought out financial plan in place.  Even if your idea is great, you need to be prepared that it might take a while to launch and become successful.  It might not be the best idea to bring on additional employees at the start of a new venture as you have to ask yourself how you’ll pay them.  Bottom line: don’t get ahead of yourself financially.

Not having a clear focus.  You should always and I mean always have a business plan in place before you launch into the world of entrepreneurship.  You should set both short and long-term goals for your business.  This allows you to keep yourself if check and check your progress along the way.  “Without a clear vision of where your company is heading, your great idea can get muddled along the way”

Relying too much on a single consumer base.  Having one large customer in the beginning might be a great way to get your business off the ground and up and running but don’t rest on your laurels.  Always have a plan as to how you can acquire new customers and broaden your reach in the marketplace.  Let’s say you have a customer that generates a substantial amount of revenue for your business but then they themselves go out of business, where will that leave you?  While targeting a specific audience or demographic is a great recipe for success, you need to market your product as inclusive to all and not exclusive to some.

Not doing your market research.  Oftentimes, entrepreneurs overestimate the size of their potential market which throws off the size of their potential bottom line.  Be careful about defining your market segment too broadly and make sure to do your research on the competition that will also be vying for your customer’s attention.  Think about what your customers incentive might be to buy from you instead of someone else they may have been buying from for a long time prior to your launch.  Is there enough demand in the market to support the introduction of your product regardless of how new and innovative it may be?

Lack of experience.  Not knowing the industry you’re entering into enough could be your downfall and lead to costly mistakes.  Before launching your start-up, try to gain experience in that market prior.  Use your past experiences to create your future ones.  Reach out to mentors or ex-coworkers for brainstorming ideas.  And of course, always be networking.

You’re getting in for the wrong reasons.  Being fired from a job doesn’t necessarily mean you always have to go out and start up on your own.  While often this is a catalyst for some entrepreneurs, it might not always be the logical next step.  Take some time to honestly assess your strengths and weaknesses before sinking your time, effort and money into your own venture.  However, if this is something you’ve put a lot of thought into, wanted to do for a long time and have done your homework, then go for it!

You think you can do everything yourself.  That tends not to be the case most of the time.  As I mentioned above, don’t hesitate to reach out to your network for business advice and emotional support.  There will come a time when you’ll need to bring on employees if your venture is taking off.  Remember, asking for help isn’t always necessarily a bad thing.

Lastly and probably the biggest mistakes entrepreneurs make is having unreasonably high expectations for immediate success.  It often takes time, countless hours and lots of effort to come up with a great idea, launch your product and build a brand.  Don’t forget that.  Jumping in head first might work for some but it’s not ideal.  As cliché as it may sound, it’s best to remember that oftentimes slow and steady wins the race.

Here are some articles you might want to check out regarding the mistake entrepreneurs often make in business:

“Stupid Mistakes Entrepreneurs Make in Business”: http://wetalktoday.com/entrepreneurs/stupid-mistakes-entrepreneurs-make-in-business

“12 Mistakes Entrepreneurs Make”: http://www.askmen.com/money/career_100/137_career.html

“4 Mistakes Young Entrepreneurs Make That Waste Time and Money”: http://www.businessinsider.com/mistakes-that-young-entrepreneurs-make-2012-10

“Avoiding Common Mistakes Entrepreneurs Make”: http://www.bizjournals.com/triangle/blog/2012/03/avoiding-common-mistakes-entrepreneurs.html

Until next time…

Making your best pitch in business

To make a success of your business, you need to be able to sell your idea to potential clients and customers alike.  That’s why making a great pitch to them is one of the key skills you’ll need to develop in order to be successful.  Once you’ve developed and written your business plan, it’s time to start presenting it to the world; to investors, to clients, to customers.  Their money is the desired result of your pitch.  Regardless of how you make your pitch, many new start-ups often fall prey to the mistakes one can make in doing so.  So how to avoid those pitfalls and make a successful pitch?

First off, build a relationship.  When people buy your product, they are making an investment of their time and money in you.  You have to let your clients and customers know that it’s not just their money you care about but that you also care about them and how your product can in fact help them and better their lives, whether it’s making things easier or cheaper for them or providing something completely new to them that revolutionizes the way they work or purchase.  No one wants to enter into a business transaction with someone they don’t trust so let your customers and clients know that you have an interest in their lives beyond their wallets and check books.

Believe in your product.  Showing your potential customers and clients that you’re enthusiastic about what you’re selling can go a long way to gaining their business and trust.  If you show them why your product is indeed the best out there and reassure them that you will make a successful go of your product, they’re more likely to believe in you.

If you’re making an in-person pitch, make sure to look your best.  Don’t come sloppily dressed.  Your professional appearance is a reflection of your professional attitude.  You have to represent your brand by looking your best.  This makes an immediate good impression on clients and customers.  If you don’t seem to them to take care of yourself, how will they trust you to take care of them?

Don’t just sell your product; sell your image and your vision of what your product can add to the lives of your clients and customers.  “Beer companies don’t sell an alcoholic product but a beverage that leads to fun, social activities.”  The item you’re selling has to go beyond the pitch you’re pushing.

Learn to overcome the initial “no” you might hear or any other deterrent to your pitch.  This is a natural part of selling that shouldn’t be taken personally.  Find out why your client or customer is indeed telling you no and explain how your product overcomes their worries.  Make it a non-issue.

Know your client/customer and their goals.  Take the time to do a little research on them.  Whether it’s perusing their website or looking up their profiles on LinkedIn, a little extra effort goes a long way.  More specifically, know what they’re looking to achieve or gain from your product.

Keep your pitch short, clear and concise.  You don’t always need an in-person meeting.  Sometimes you can just send along a business proposal.  Make it easy for clients and customers to read your pitch.  In essence, get to the point and quickly.

Provide a link to your work.  The best way to do this is to make a brief mention of one or two past successes and provide a link for them to read more.  A website with a portfolio, or a link to your best published work, are great for this.

Lastly and most importantly, follow-up.  If you don’t hear back in a few days, send a short email.  This might help you earn their respect as they know you are working hard to earn their business.  

Here are some articles you might want to check out on making your best pitch in business:

“How to Write a Business Pitch”: http://www.scribendi.com/advice/how_to_write_a_business_pitch.en.html

“How to Make a Business Pitch”: http://smallbusiness.chron.com/make-business-pitch-22133.html

“New Business Pitching to Win”: http://www.impactfactory.com/gate/new_business_pitching_skills_training_development/freegate_1014-1103-19291.html

“Making Your Best Pitch”: http://boss.blogs.nytimes.com/2012/10/31/making-your-best-pitch/

Until next time…