Starting a business is hard enough, but making mistakes could make running a business even harder. Here are the mistakes you should avoid:
1. Never pursue an idea without researching the market
Martyn Dawes, founder of Coffee Nation (now Costa Express) says: “[Entrepreneurs can] make too many assumptions about what their customers want and so they start to try and build a not completely proven and understood business. This usually unravels down the line.”
- Don’t expect success to happen overnight
Phillip Letts, founder of the Blur Group has the following advice: “We saw it in the dotcom era, and we’re seeing it to some extent with the new world of instant apps and firms. The reality is that you have to decide at the start to be in it for the long-term. The companies that make headlines very early on in their life are the exceptions, but often set the expectations for entrepreneurs.”
- Never run a business without having a sales plan
Not having a sales plan is like running your business on a wing and prayer and hoping that the dart you threw blindfolded will hit the bullseye. It undermines your business’s chances of success. Every month you need to set clear sales goals and try to meet them.
- Never price your product too low
Entrepreneurs tend to underprice their products and services in the early days of their lives. In most cases they do it out of sheer desperation. You need to be sure that your margins are sufficiently robust for you to grow the business.
- Never over-promise and under deliver
As a new entrepreneur you might be tempted to talk up your product to lure customers into buying. Don’t do it because if those customers don’t see the results you’re promising, then you’ll not only lose them but you will lose the reputation of your business as well.
