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The flow of monetary has become extremely intense forcing organizations to downsize their employees and in such circumstances, it will be quite a smart move to set up your own business rather than looking for keen occupations that you might never be able to discover. However, in a process to set up a new business, there are big chances that both major and minor blunders can repeatedly be made by inexperienced entrepreneur who may also face unbearable losses due to a number of unavoidable reasons such as deficient assets, inexpert administration or unavailability of enough capital.
Sadly, this happens frequently in new businesses especially with those entrepreneurs who think they know everything and can do anything alone without any guidance at all. Their thoughts and ideas may be awesome and they may also be striving too hard but simply missing certain tactics, necessary to run a business successfully, can make their business fall flat. Therefore, if you don’t want to be among losers, you must try to avoid these deadly mistakes frequently made by others:
1. Be Part of an Inappropriate Business Entity
There are numerous entrepreneurs who desire to begin a business but they soon confront misfortune on account of the sole proprietorship business which they consider as extremely financial savvy. In any case, the dangerous issue with this kind of business is that you can suddenly lose all wealth you’ve ever claimed to have in your ownership just because of a simple mistake. To prevent this happening with you, you need to pick the right business type such as:
- Go for a partnership
- Choose limited liability firm
- Choose a corporation
You should get the counseling of a legal advisor who will help you in choosing the best business entity.
2. Accepting Unmanageable Business Projects
When you setup a business and start receiving projects, you must avoid taking more projects than you can actually handle because if you overburden yourself, you might not be able to finish all of them in time which will be resulted into losing potential clients. Therefore, you must try to accept the projects that you can easily handle and earn your profit at the time of completion.
3. Chasing Unclear Business Goals
Another most common mistake made by new business visionaries is the chase for unclear business goals. If you don’t understand the reason behind the existence of your business, how can your business partners can get through it? You must have clear understanding and information about your business in order to approach your target market, your organization group, and your joint venture partner. You must do the following:
- To make a reasonable vision, you’ll need to put forth a clear mission statement
- Clearly mention your goals and objectives
- You must keep in mind that your objectives are achievable
- A clear mission will say the purpose of the existence of your company
4. Engaging Yourself into Various Businesses
Most of the new entrepreneurs are impatient to take a start of a new business whereas; they plan to run more than one type of businesses at the same time. These entrepreneurs do not focus on even one of their businesses and they can’t wait to see one of them to succeed. Owning more than a couple of fizzled businesses is not where your prosperity lies, but rather owning one but a successful and prosperous business is your incredible accomplishment.
5. Not Rewarding Yourself with Salary, Bonus and Other Perks
Most of the entrepreneurs think that they don’t need to include their monthly salary or share of income in monthly expenditures and they make up their mind to be satisfied with what they will have at the end of the month from their total income but this approach is absolutely wrong as you must reward yourself with proper salary, bonuses and other perks.
6. Giving No Value to Fundamental Organizational Values
Your organization fundamental values direct the way you run your daily business. Making core values for the organization and for your employees is important to get achievement. Remember that you should not subordinate the core values of your organization and employees only for the money but these must be placed on the top of your priorities.
7. Your Idea Must be Sellable
When we talk about an idea, you must keep in mind that your idea should be narrowed down and when it is done, you should affirm that your idea is sellable. You may be enthusiastic about some ideas very much but it does not qualify it as a smart thought. Your idea must be sellable which simply means that it must be something that is in demand; people should need what you are offering to them. Two things that you must have to run your idea successfully are:
- It should be something you are expert of.
- It should be something you are enthusiastic about
8. No Proper Business Plan and Marketing Strategy
Absence of a viable marketable strategy is additionally the greatest mistake made by today’s young business visionaries. These entrepreneurs set up a new business without making any effective marketing strategy and business plan for success. This is undoubtedly an incorrect way to deal with a new business. Having a compelling marketable strategy and effective business plan helps you in improving your business because you would have an organized and structured way to follow and get the achievement. Business plan and marketing strategy helps you in:
- Knowing and acknowledging what will be the source of revenue and how it would be spent
- You will also have the capacity to save your income as you would know from your strategy and plan that where your income should spend.
9. Need No Specific Job Descriptions
If you are going to setup a new business, you must have a team of professionals with you who will be carrying out variety of responsibilities. However, if you hire people without knowing what type of people your company needs, this will become absolutely impossible for you to find the right people. Therefore, you must have proper job descriptions before you initiate hiring process. Do the following things:
- List of necessary sets of skills
- List of required qualifications
- Responsibilities carried out by individuals
10. Do Not Just Talk, But Implement it
This is the last blunder that the entrepreneurs make. These young business visionaries simply discuss about their business thought that is why it is innovative and can bring drastic change in the business world, however they do not do anything to implement their thought and as a result the idea becomes only a day dreaming stuff. If you are not completely ready to start something pragmatic, there is no reason of discussing the business idea with others.
You should not speak enough about the business until you are fully prepared to implement your thoughts. Regardless of how great your business idea may be, it is not a business until it is set up, recognized and materialized. So start putting in your efforts to implement your business thoughts to see if it is effectively workable.