In the business world, mistakes are bound to be made, no matter how smart you may be. Some mistakes are capable of wrecking down the business if care is not taken, so what are the mistakes you must avoid to be a successful entrepreneur?
7 Common Business Mistakes You Must Avoid
1. Choosing the wrong business partner
One of the common business mistakes you must avoid is Choosing a wrong business partner. This is a very delicate task and it should not be taken with levity hand. A lot of businesses are folding up today because of this issue, so in choosing a partner make sure you choose rightly.
Ask yourself these questions:
Is your mindset the same with the proposed partner?
Does the partner really understand the business vision and mission?
How committed will this partner be?
Does the strength of your partner equate your own weakness?
Does the partner have a basic knowledge on how the business works?
These questions will help you in the choice of a good business partner.
2. Wrong recruitment
“If you own a butcher shop, don’t hire vegetarians. To hire the right people, you have to let the wrong people go.” – Rich Dad
Many entrepreneurs are in haste to hire employees and at the end of the day the business suffers for it. Successful entrepreneurs don't hire people anyhow, they hire the right people to fill the right position.
3. Too much familiarity with employees
“Don’t be too familiar with your followers; it may at first inspire affection but eventually, like all familiarity; it will breed contempt.” – The Mafia Manager
Don't get too attached emotionally to your employees, learn to reward and fire at the appropriate time.
4. Not taking risks
Many people don't want to start a business because of the risk involved,
Most entrepreneurs as well couldn't grow tbeir business because they are afraid to take risk. They think avoiding risk is a good decision not knowing it's a very bad one.
“In today’s rapidly changing world, the people who are not taking risk are the risk takers.” – Robert Kiyosaki
5. Giving up too easily
“Think about it, no one can win a race in which he had given up. You can’t win a battle for which you have surrendered.” – Mary Kay Ash
This is very common among new entrepreneurs. When the going gets tough, they turn back and quit. Remember "Winners never quit and quitters never win"...most of the successful Businesses you see today has also experienced hard times but they didn't give up, that's why they're popular and waxing stronger everyday.
6. Serving the customer on assumption
This is another common business mistake you must avoid, it can easily ruin your business. Don't serve your customers based on assumption or what you think they need, but based on what they actually need.
“You can’t just ask the customers what they want and try to give that to them. By the time you get it built, they will want something new.” – Steve Jobs
One way to get identify your peculiar consumers' need is to be conducting market research frequently. This process involves knowing your customers; tbeir needs, preferences and tastes.
7. Frivolous spending
Frivolous spending is a common business mistake that most entrepreneurs make, they don't separate the business fund from their personal fund; they spend money on themselves rather than the business. Anytime the business yield huge amount of money, they spend it on irrelevances. As an entrepreneur, you must learn to spend money wisely or else you will soon go out of business.
Now that you have discovered some of the common business mistakes people make, why not learn from it and take your business to the top!
Do you have any questions, kindly let me know via the comment box.