5 Most Common Mistakes First Time Entrepreneurs Make

Have you ever feel like things are not working for you? Do you feel like your life is a failure and about your startup too? If so, then reconsider your thoughts. In this world, several people start their startups and face failure.

But that doesn’t prove that you have to set back and regret about your deeds. People can learn ample things from their mistakes only. In fact, you can also learn from other’s mistakes.

Image Credits: Photo by Kiyun Lee on Unsplash

Let us ask you one question- ‘have you heard about Walt Disney’s stories?’

Known for its extraordinarily successful creative visions as a theme park developer, animator, and filmmaker, Walt Disney has changed entertainment in the 20th century and beyond. No doubt, we all know about its success stories.

But the main question is that- ‘have you ever dug a little deeper into Disney’s background?’

When we think about success, we always think about Walt Disney life story. He is the person who has faced so many failures in his life and still standing on a ladder of success. Do you want to get some information about his life?

At the age of 22. Walt Disney was as fired from a Missouri newspaper for “not being creative enough.” After that, he tried hard to launch his early venture, called Laugh-o-gram Studios, but it also went bankrupt. However, he never gives up in his life and continues his struggles to achieve success and do well in his life.

And due to his determination, consistency, and persistence, he created more than 81 feature films and hundreds of shorts and earned more than 950 honors, including 48 Academy Awards.

In fact, he has also founded the California Institute of the Arts and built Disneyland. More importantly, he still holds the record for the most Oscars won by an individual, as per the WaltDisney.com.

According to him, If we dare to pursue our dreams, then only our dreams can come true. And big things always have small beginnings. So, if you want to make a dream into a reality, then pursue your dream with courage. The future only belongs to those who never give up. And Walt Disney’s story is a perfect story from failure to success.

Now, you have an idea about Walt Disney’s story.

Let’s start the article while explaining the most common mistakes that first-time entrepreneurs make so that you can operate your business smoothly.

As per stated earlier, startup success is not an easy task. It is often described as some elusive feat that only a lucky few can achieve. In reality, start-up success (or failure) is usually a lot more predictable than you expect.

And you must have heard about the statistics prevailing that only 90 percent of startups fail. But what if I tell you that startups usually boils down due to a few common missteps and mistakes. Better yet, those mistakes can be easily ignored and avoided.

Are you ready to up the ante and accelerate your startup towards success? If so, then consider these top five mistakes so you can avoid them like the plague.

#1 Mistake- Pretending You Know Everything

Pretending like you know everything and you have a hold over all other stuff is not a good sign of a successful entrepreneur. Everyone should keep one’s feet on the ground so that they can learn and experience various things.

And if you are a first-time entrepreneur, then you don’t need to worry about this. There’s nothing wrong in admitting that. When you need some support or help from others, then ask for it without having any second thought.

There are plenty of chances of someone in your network has some answers for you. The only thing that you need to make sure that the person must be enough qualified to be giving you advice on the topics where you need. The entrepreneurial community is impressive, and a lot of people will be happy to help you if you just ask for it.

#2 Mistake- Giving Away Control for Capital

Another mistake done by the newly-entrepreneurs is giving away all the control over their capital to other people. Several business people stop at some point when they get an investor for their business, and then they give all power to their investors. Well, this can often be dangerous for you and your business.

Before you look for any investor, it is better to continue bootstrapping your business and get some traction. In this way, you can keep a track over your business. And if you don’t have any prototype or any traction, then it will be much harder for you in order to get an investor that doesn’t want to have a large chunk of interest in your company. In fact, several researchers show that many startup founders kicked out of their own organizations because an investor controlled more than 50 percent.

#3 Mistake- Waiting too long to Start Selling

Due to the robust engineering culture in many organizations, many people feel nervous or hard to ask for money from their supporters. In fact, at that time, they prefer to spend a lot of their precious time on the products or services and put off actually selling the product in the market.

Obviously, this kind of attitude leads to wasted time and money on features and functions that weren’t even needed after all — considerably slowing down progress in the market and burning up precious capital.

Therefore, the solution for curbing this situation is to engage your loyal customers immediately way before you launch your business in the race in order to get feedback.

In this way, you will not only able to create better products and business in the competition, but also will be able to save months or years, and potentially millions of dollars in venture capital, if you start selling much, much earlier than many first-time entrepreneurs do!

#4 Mistake- Hiring Your Friends

This is one of the most common mistakes done by the newly-made entrepreneur. Hiring their friends or relative in order to manage their business.

As a matter of fact, selecting someone as your partner for your organization is a huge responsibility, and if you made any mistake in this sector, then there are more likely chances that your business will fail. While launching a business, hiring someone for your business would be your first choice.

When starting an organization, you might feel more tempting towards recruiting your friends because they are loyal and friendly towards you, right? But think about that situation, when they don’t perform anything good, and eventually you have to fire them?

This decision is certainly more impactful in terms of satisfaction and equity, so it is better to work with someone who can deal with all the troubles and assist you in scaling your business.

Always remember to recruit that person who can meet your expectations and business too from the beginning, so there are no hard feelings if you have to fire them.

#5 Mistake- Think their plans are “Perfect”

Another most common mistake entrepreneurs usually do is they start believing that it’s one lap around the track and it’s the finish line. Therefore, they always try to make a perfect product and create an extraordinary plan, and after that, they indulge themselves in finding a significant amount of funding.

However, when they soon find out the fact that it’s a multi-lap race, and their plans are not able to cover all the sections, and more importantly, their funding doesn’t account for the longer race.

One of the key mistakes entrepreneurs make is they believe it’s one lap around the track and it’s the finish line, and so they try and make a perfect product and have a perfect plan, and try to get the right amount of funding. But what they soon find out is that it’s a multi-lap race, and their plans don’t cover that, their funding doesn’t account for the longer race.

What you understood from this situation?’

Ample people say that you need to have a better plan. But when you talk with people who have a lot of experience, they will ask you that the plan is pretty much irrelevant on the first day the business tries to operate.

Thus, in this situation, you need to follow a lean innovation theory. Well, it’s a theory that tells you will help you in tracking all the products or services and services, getting out to the customers — moreover, your business idea, whether it is good for embarking into the competition or not.

Before spending so much of your hard-money on perfecting the products, and on other tasks, firstly, look for the need of the products, get some feedback from users, and then invest into it.

Conclusion

Launching and operating a business in the competition isn’t for the faint of heart. And if you somehow fail at your first attempts while running a startup, that doesn’t mean that you can’t operate a company. Researchers show that after facing the failure stage, you will have a better chance at succeeding at a future startup than who has never failed.

And now you have a better idea about which things you have to undo while running a business. Hence, do proper research work, stay consistent, align with the right people, and provide more value than your customers expect. Good luck!

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