Nobody likes to fail. But some type of failure is what every entrepreneur will likely experience in their process of becoming successful. Many young entrepreneurs who start a business will likely have little or no experience, and they just jump in. That is not to say this type of passion is wrong, but it is necessary to take the proper and controlled steps to become successful. It’s a given that entrepreneurs should have a business plan and do other common things to help them become successful. There are many roads to success and failure and a business plan gives an entrepreneur a fighting chance. Yet there are mistakes that entrepreneurs make that are not generally thought of. Here are a few of them:
- Hiring someone you know and trust – While hiring friends and relatives might be comfortable, competence is much more important. If your heart takes over your thinking process when it comes to hiring, you will generally make a mistake. When you hire friends and family, it reduces your pool of talent in the marketplace; they are generally very hard to manage. So think of it this way: “If you can’t fire them, don’t hire them.”
- Not getting good professional advice – Too many times entrepreneurs try to save money on a getting professional advice. They go for the inexpensive lawyer or accountant and then rely on them to be their business consultant, which most are not qualified to be. Good professional and intelligent advice from an experienced and successful consultant will help you become successful, and they can open many doors for you as well. The people you surround yourself with are important as long as you listen to them and keep an open mind. If you rely on the advice of experts, your chances of success are improved.
- Keeping your expenses as low as possible – The key to business success is keeping your expenses low, correct? That is not always true. For instance, sometimes its is worth paying more in rent if it will generate more customers, attract better employees, or provide you with a better image. The image you create around your product or service (in fact, in everything you do) is a big deal. Watching your expenses is important, but a return value for those expenses is also something to consider.
- Spend money like it’s your own – I have often stated many times that “money makes you stupid”. When an entrepreneur gets a good chuck of change for their business, they often spend it on things they would not normally do if they didn’t have the money. Just because you have thousands of dollars doesn’t mean you have to spend it. It’s important that entrepreneurs spend money based on the return they would get and ask themselves this question, “Is this a good investment, and would I do this if I did not have the money because it’s absolutely the right thing to do?”
- Blindly falling in love with your product/service – Having a passion for your product/service helps lead you towards success. But having a terrific product won’t make up for bad decisions and deficiencies in marketing, management or finance. The business and strategic plans put in place are as equally important as the product/service, and entrepreneurs who thinks they know it all is generally the kiss of death.
Successful entrepreneurs make mistakes. Learning from them is important and learning from those who have already made them might help you avoid mistakes in the future. And I have certainly made my share . If you would like to learn more, please feel free to contact me at mlewis@simmonswhite.com (504 905-4646) where we solve extraordinary business challenges. Here is to your success.