Common Mistakes Young Entrepreneurs Make and How to Avoid Them

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(Last Updated On: August 18, 2014)

In today’s tough economic times, it is a good idea to start a business
and become your own boss instead of searching for dream jobs you might
never find. As a young and upcoming entrepreneur, you will be full of
zeal and spirit and will always be willing to do everything possible
to make things move your way. However, this does not mean you will be
successful in everything you do. As a normal human being, you are
bound to make many little mistakes along the way that will end up
costing you. For you to avoid making these mistakes and do well, you
should learn from older entrepreneurs who have made several trials,
failed at one point or another, and finally managed to succeed.
The following are the top 7 common mistakes often made by young
entrepreneurs. Go through them and identify the ones that ring a bill
in your mind. Most importantly, learn how to avoid them to increase
your chances of standing out among your competitors in the field of
entrepreneurship.
1. Not Having Clear Goals and Vision
One of the greatest mistakes you can ever do as an entrepreneur is
failing to come up with clear goals for your business. According to
research, many young entrepreneurs just decide to venture into
business without even thinking about the implications. They are not
only unsure of what they want to achieve, but also don’t know how to
achieve it.
As an upcoming entrepreneur, it is very important for to know that the
success of your business depends greatly on the goals you set. You
should know exactly what you want your business to achieve from the
beginning. Plan everything to the detail and stick to every plan. If
your goal is to establish the biggest customer-oriented company in
town, you need to stop sitting around and work hard toward achieving
your goal. Some of the most important factors you should take into
consideration while making your plans include:
o Both the long-term and long-term goals
o Your target market
o A comprehensive organizational structure
o An executive summary outlining the responsibilities of every employee
It is also very important for you to inform all your employees about
your desired goals for the business. Once they have an idea of what
you intend to achieve, they will work hard and put the much-needed
effort to make it a success.

2. Taking Financial Planning for Granted
Failing to put enough finances for your business in place is a clear
indication that your business will be going nowhere. For a business to
thrive and stay afloat, everything must be budgeted and catered for
from the start. If you do not have enough capital to invest in your
business, it is better to start looking for ways to get money early
enough even it means loaning or looking for part-time jobs. Even
though it’s not easy, you can also try to ask for funds from your
trusted friends and family members.
Once you get enough money from loans, other infrastructural
investments, or salaries, you need to plan very carefully on how to
use it for the betterment of your business. Avoid mismanaging business
money as much as possible. Do not start behaving like other
irresponsible young adults wasting money on fancy cars, girlfriends,
and expensive trips for no good reason. In any case you do not know
how to manage large sums of money due to inexperience, it is very
important for you to ask for advise from trusted friends, business
associates, or relatives.

3. Trying to Do Everything Alone
It is very true that most young entrepreneurs prefer handling
everything in their businesses alone without asking for assistance
from others. This is very detrimental for any type of business. You
should always know that running a business is a great challenge that
you can never face alone even if you have all the necessary resources
at hand. Therefore, you should stop wasting your valuable time trying
to do everything alone and start looking for professional support and
help from different people. Never be afraid of asking for any type of
assistance from people who are more experienced than you. Always
strive to work with like-minded individuals who can help you with
better ideas on how to manage your business.
Even though it is a good idea to ask for help from others, it is very
dangerous to seek for help from everyone. Due to jealousy, some people
will try to give you wrong and conflicting opinions just to prevent
you from succeeding. The best thing for you to do is to identify and
listen to a few trusted individuals who you believe can help you out.
Before you start doing anything you are told, you should be able to
trust your own instincts and ensure you are doing the right thing.

4. Being Greedy
If your main intention for becoming an entrepreneur or businessman is
to get money and become rich, be sure to fail terribly. Being greedy
is one of the deadliest mistakes you can ever make as an entrepreneur
because instead of building you, it will only destroy you and make you
very miserable than you could never have imagined. Never keep your
mind solely on the amount of money you expect your business to give
you. Instead, try to concentrate on other important things like how to
serve your clients in the best way possible, how to motivate your
employees, how to get more business partners, how to invest wisely,
and other vital factors that can make your business better in future.
In addition, always be content with whatever your business has to
offer, however little and be proud that you are managing your own life
better than many of your peers or colleagues.

5. Unwilling to Admit Faults
Making a mistake is one thing, admitting and correcting it is another.
There is no way a person can correct a mistake before admitting to
being wrong. Research reveals that a great percentage of entrepreneurs
are always unwilling to admit their faults. They tend to believe that
their ideologies, strategies, and the way they handle their business
issues are the best and should not be questioned by others. They turn
deaf ears to important and helpful advises coming from other people.
This is very wrong and unprofessional.
It is very important for you to own up to your mistakes and do
whatever necessary to correct and learn how to avoid them in future.
Try to see where you went wrong and listen to what others have to tell
you because they might be having better ideas than you on how to make
things work out. By doing this, you will be avoiding unnecessary
troubles and inconveniences in the future, which is very healthy for
your business. Do not be afraid to listen to what others have to tell
you and never assume that you are the only one who knows better.
Asking for advise or ideas from others does not mean that they are
better than you or that you are inferior.

6. Being Impatient
According to statistics, about 60% of businesses do fail every year
because of impatient entrepreneurs. They want to start making money
immediately the business is in operation. Impatience is a very
dangerous disease that attacks and kills a business in a very easy
manner.
As a young entrepreneur, it is very important for you to understand
that a business does not grow overnight. It takes time for any
business to grow and start bringing in enough income according to
expectations. Depending on the nature of your business, things might
start getting bright for you after week, months, or even years only if
you exercise patience. Concentrate on doing your best at all times and
wait to reap the fruits of your hard work when the right time comes.
Even though waiting for long might seem unbearable, never try to
relent. You have no idea when you might stumble upon something capable
of changing your business forever.
7. Forgetting to Create a Brand
Most entrepreneurs usually focus their minds on getting the job done
and forget about giving their businesses a clear identity. You need to
understand that not many people will trust you immediately you start
operating your business. It is a very sensible idea for you to work on
building a brand image for your business or company so that potential
customers will know exactly what to expect from you. A good brand not
only increases your credibility, but will also sends your company’s
message clearly and allows you to connect well with your customers and
motivate them to keep on coming back for your services and/or good.
If you do not know how to create a good brand, you need to ask your
local branding expert to do the job for you. Once you have a brand,
you have to maintain it on a regular basis to ensure the success of
your business.

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