Follow Your Passion
Following one’s passion in far too many cases can lead straight to Bankruptcy court. Of course, passion is necessary. Your passion and commitment to success is definitely a requirement to overcome all the obstacles entrepreneurs face every day. However, ensuring there is a market large enough to sustain your business and all the Items: namely products and services you are so passionate about, is vital for success. Otherwise it may lead to hardship.
Considering Cost Plus Time as the means to determine pricing for products and services.
This is a classic mistake for many first time entrepreneurs. This method leaves little profit to grow the company, establish a distribution network and hire employees. Instead, make a point of identifying all your fixed and variable operating costs, in order to add a fair market profit margin. Guard these margins because there are so many unknowns that can chip away at your profits. The best way to protect your income is to analyze your cash flow each and every day.
Believing that Entrepreneurs must Wear Many Hats.
It’s an often-repeated phrase. BUT, the more hats one wears, the higher the probability of failure. Do what you do best and delegate the rest. Learn the proper methods to effectively delegate. Insist on hiring or contracting with the best, then get out of the way so they can do their job.
Spending too much money on Advertising so early in the Startup Phase.
Avoid spending any money on advertising without a method to track every advertising dollar. A great way of spending a small amount with higher reward is to utilize promo codes. It’s a very popular method and can help track viewers. There are many free avenues as well , customer referrals, announcements and customer follow up reports.
Packing all your Eggs into one Basket.
Most people have heard this phrase and understand what it means. However as entrepreneurs, so many, myself included, do it regardless of the consequences. Why? It usually involves one customer with one order too big to ignore. Before you know it, you are trapped in a massive undertaking you’re unable to fulfill. As an answer; admit to the customer their order will significantly stress your business capacity and ask them how they can help manage their order. They will appreciate your honesty and integrity, and be more than willing to help.
Ignoring Employee Investment, Turnover and Insurance.
Take good care of your employees to avoid training them for your completion. There will always be some turnover so make sure to invest in cross-job training and establish a good working relationship with a good temporary workforce. Employees will sometimes feel mistreated or bring false charges against a business so make sure there are legal fees and insurance set aside to handle such cases.
Mishandling Customer Requirements, Missed Delivery Dates and Complaints.
Most customers will work with you to help meet delivery dates and satisfy their needs, but when it becomes a habit, customers will look elsewhere for better service. Most entrepreneurs miss the opportunity to follow up when a customer “disappears,” and ask for a second chance to make it right. Remember, behind every customer complaint is another order waiting to happen, and one must learn how to handle the situation and turn it into a new order and maintain success.