9 COSTLY LESSONS ENTREPRENEURS LEARN TOO LATE IN BUSINESS
As an entrepreneur, you always learn, be it from your mistakes or others.
There are constantly new things that come up in the market and you need to learn quickly so you can avoid pitfalls and mistakes that might end the existence of your business forever.
Ouch! That was harsh, but let me remind you that 9 out of 10 businesses fail in business. That’s a fact.
If the entrepreneurs took the time to learn from other business owners' mistakes before starting their business, they might have prevented it from crushing.
Working with hundreds of clients and teaching over 100,000 online students have thought me a lot about entrepreneurship.
In this article, I have identified a list of the 9 deadliest mistakes that will put your brand at the risk of failing in business.
1. Don’t reinvent the wheel. Instead, go to a hot market with existing demand.
One mistake that most entrepreneurs make is they try to invent something new.
They want to create a new market for themselves and that requires a lot of resources, time, and marketing effort.
Instead, enter an existing market with existing demand, things that people usually buy, then provide a similar set of products but with premium quality and superior customer service and experience.
Once you generate profit, you can eventually research and excite your existing customers with something completely new.
2. Don’t serve the masses. Instead, focus on a smaller group of premium customers.
Another mistake that most beginner small business entrepreneurs make is they try to satisfy every customer and compete on price.
What a disaster recipe for going bankrupt! You not only need a lot of money and resources to compete with large manufacturers and distributors, but also you will end up undervaluing your brand.
Instead, it’s a better and more profitable approach to serve a smaller group of premium customers.
People who like to buy sophisticated and great quality stuff.
You not only get less fussy and needy customers, but also you can earn more money with larger margins on every sale you make.
3. Don’t buy unnecessary stuff. Instead, manage your expenses with a tight fist.
Many entrepreneurs end up overspending on things that don’t generate any value to the bottom line of their business.
They buy expensive stuff that makes little to no income, which is a total waste of money.
Instead, manage your business expenses wisely and only spend on stuff that generates sales or strengthens the relationship with your customers.
Before you buy expensive assets or equipment, consult with an accountant, finance expert, or professionals to get proper guidance on what you need to run and expand your business efficiently.
4. Don’t sell commodities. Instead, sell an experience.
Another big mistake that some entrepreneurs make is that they think they are in the business of selling commodities.
It might seem exciting for you to sell your creation to a customer, but in reality, most customers are buying the experience rather than the product itself.
Plenty of other businesses can offer similar products or services, but what makes a customer pick a brand from another is how the brand makes them feel throughout the entire buying process.
Customer service and experience are those things that matter the most, and that’s why you must shift your mindset from selling a commodity to selling an experience.
5. Don’t hire staff. Instead, build collaborative teams.
Many entrepreneurs try to save money by hiring insufficient staff that damages the customer's service experience or slows down the operation process.
If you want massive success in business, your focus has to prioritize building talented and collaborative teams, nothing else.
You can depend on these effective teams to serve your customers excellently and maintain business operations efficiently.
You also have to invest in building automated or human-driven systems that ease the pressure on your team and deliver outstanding and consistent results for your customers.
As an entrepreneur, you also need to learn how to take on the responsibility of a leader, communicate clearly and efficiently with your staff, develop trust and confidence among your team members, and delegate as many responsibilities as needed.
6. Don’t ignore marketing. Instead, promote your brand all the time.
Even if you have the best product, if you don’t put the effort into promoting it and generating a word-of-mouth buzz around your brand, you will rarely make sales.
Many small business entrepreneurs start a business without planning a marketing budget or marketing plan.
They think through all the minor details of creating their products or service but have no clue about how to market or sell that product.
Marketing is a major reason behind why tons of small businesses don’t get traction and you must not ignore it at all costs.
Remember that marketing is the best investment you can put into your brand, so don’t get greedy about it.
7. Don’t be sloppy. Instead, be well managed.
Yes, having ideas is great, but you need to have exceptional management skills. Most starting businesses don’t flourish because the founder has a great idea.
They succeed and grow because the entrepreneur was highly organized and could deliver significant results consistently.
If you find that it’s tough for you to be highly organized and consistent, find a business partner or hire a general manager who can take the managing aspects of your business as you focus on the creative side.
8. Don’t be so nice. Instead, do things right.
Most entrepreneurs try to please everyone.
They try to please every customer, every friend, every investor, every employee, and every single human on this planet.
Inexperienced entrepreneurs lack confidence and are needy at getting approval from everyone on their idea.
Instead, be polarizing because it’s not easily possible to make everyone happy.
That’s why you want to take your time and understand your loyal customers’ needs, then adjust your business to what satisfies them the most.
Sometimes you might have to experiment with something new that most people won’t agree with.
That’s fine! As a business owner, you are in control. If your new experiment works, that’s great! If it doesn’t, take responsibility and fix it immediately.
Remember to ask for feedback, and maintain a positive attitude and the benefits can be a lot better in the long run.
There is nothing harmful to having an open line of communication with everyone as long as it doesn’t stop you from achieving business success.
9. Don’t exhaust yourself. Instead, learn to take a rest, and reflect.
Starting a small business might be overwhelming. There is a lot to do with little resources, and that’s exhausting and might get you to give up pretty early.
Instead, learn to take things slowly and take care of your health, relationships, and lifestyle.
It’s okay to relax now and then.
There is no sin in spending some good time with family and friends. No one is watching!
Work with others to delegate a part of your work so you can enjoy some time to reflect on your business growth.
Business success isn’t about how much work you put in, it’s more about following the right strategies and tactics that get you to effective results in the fastest period with the least effort.
It’s never too late to learn from other entrepreneurs’ mistakes and avoid the costly disaster yourself.
Even if you failed in business once, you can always pick yourself up and start your new venture.
As an entrepreneur, you are the growth engine of the economy.
Sometimes you have to take the risk of doing new things, and that’s scary.
However, don’t fear. As long as you keep a curious mind for learning, you can always pivot your business and put it on the right track.
If you want to learn more about how to build a profitable business or optimize your small business for maximum profitability, I got this FREE course for you. Check it out >> How to Build a Profitable Small Business Online Course.