Entrepreneurs are enthusiastic people. They like to take charge. They rush head-on to the places where others tremble to look at. After all entrepreneurs are risk takers. They ride high on the waves of their venture’s success and put the world in their fist.
However even though there is an element of risk in entrepreneur’s work, there can be no doubt that it is not equal to being reckless. It is about winning the day and come out happy and energetic rather than being drained.
Unfortunately, many of us who start as entrepreneurs lose out on the basic principals of entrepreneurship and make mistakes that could have been avoided in the first place. In my opinion, these are as follows
- Not knowing your finances
- Not planning things in advance
- No control over scope
- Not having a team
- Not knowing when to quit
New ventures often demand more money than you expect them to. There are hidden expenses that come to light only when you are halfway into your venture. Not budgeting them can be a disaster.
For e.g. you never thought that getting a tax id might cost a lot of money. You had budgeted a small amount and now it is causing you a heartache.
Of course it is not possible to plan everything in advance. However, the more detailed your planning is the better. Most of the entrepreneurs are worried about how to fund the venture, however the emphasis should be on , how to utilize the existing funding and how to execute the plan if you succeed to raise funds.
You decide to serve a locality and then thought why not serve the city as well. The dreams get bigger and bigger while plans (or money ) never do. The ever increasing scope of your business and services puts an enormous strain on your venture. The idea is to have a clear cut scope that is manageable and then work to achieve that
A He-Man kind of mentality is usually a detriment. It is not possible for one person to have all the skills that are needed to run a venture. During start, due to financial constraints, it may not be possible to have a big team but try to form a team as soon as you can afford
Sometimes it is better to admit defeat and walkout. Your product may be the best but market may not be ready for it. You are going to finish all your money in a few days. You are just not able to get any customers. If you can change your strategy, it is good. However there are times , when you want to consider closing your business and not to look at it from your ego. There will be days when you are back on your feet and much wiser.