5 mistakes entrepreneurs often make while planning new business

Although ambitious youth nowadays run towards becoming an entrepreneur but unfortunately all of them will not success at the end. This is because lack of knowledge and confidence. Most of the time we have seen people claiming that if they had not done that particular mistake then it could have been flourished like any other company.

Being an entrepreneur it is not very unnatural to perform mistakes while taking important business decision. No, we are not referring any senior assistance because we do believe on the capability of youth. Only they need to avoid these following mistakes while opting for becoming an entrepreneur.

5 mistakes entrepreneurs often make while planning new business

1. Missing out planning:

Business plan is the most important part of a company. It is something which helps to convince investors as well as works as a model of upcoming targets. Therefore, if one skips this important task of business plan it will be like missing out an important phase. As whenever the entrepreneur will ask an investor to invest money in his business nobody will never show interest due to absence of business plan.

2. Failed to set smart goals:

Smart goals are quite different form general goals. The main reason of naming it as ‘smart’ is its success rate. By applying smart goals like, ‘within 2 years I will achieve best 5 clients’ or ‘within next year my customer base will increase’ always keep entrepreneurs motivated. Besides, by working on these goals one can easily achieve desirable growth in business.

So, if one fails to set such smart goals it will be very much disappointing and hard to achieve target as well. As entrepreneur does not have any goal so he will never achieve quick success.

3. Unable to understand the value of product:

Confidence is the sore need of building up your own business. The primary outcome of low confidence is representing fear while doing publicity of your product. We have researched deep down to the reason of such fear. Perhaps most of the failed entrepreneurs thought that their manufactured product won’t be acceptable by consumers.

Besides, those products may not compete within the periphery of competitive market. Instead of trying luck they easily lose hope. Due to such activity often their business idea failed.

4. Lack of technological usage:

Nowadays, technology has made the entire process of publicity and advertisement really simple. Through social media an entrepreneur can easily promote his product and earn good revenue. Therefore, the usage of technology can reduce door to door begging and transform the entire task really easy.

In such a situation if a person fails to utilise technological advancement then he will fail to success inevitably. There is no wonder in it. Failing to access different business analysing application will lead another step towards upcoming failure.

5. Unable to identify target consumer:

Target consumer is that base for which you are manufacturing products. It is impossible to manufacture a product that suits for everybody. Therefore, the identification of target age group, gender, class are really important.

Based upon the target audience you need to design the advertisement. For this reason, if you failed to identify who is you target customer then you will be complete failure as an entrepreneur.

5 solutions to avoid such mistakes while opting for entrepreneurship

1. Overcome from fear:

One of the biggest challenge is to overcome the fear. Whenever you are going to do anything new it will be completely unknown. Therefore, you have to prepare for facing something that you have never expected.

Leave everything behind. Start a fresh and overcome this fear of facing unforeseen. This is the main solution of becoming successful as a business persona. If you ever listen to a business podcasts you will definitely heard that how entrepreneur has gained courage to face adverse situation.

2. Start with a business plan:

Without making a business plan it is completely impossible to move ahead. Business plan is something that includes all the upcoming milestones to achieve. The more target oriented your plan will be there will be less chance of facing loss. Thus, if you even borrowed guaranteed loans, it will hardly create burden.

A proper business plan will always encourage the investors to invest on your company. Moreover, it will help to provide a clear cut projection of upcoming growth in future.

3. Organize yourself:

Even if you are thinking that as it is a small business so there is nothing to worry about and nothing to arrange. It is the main cause of failure. Do you know why? If you stay unorganized for a long time it will be difficult for you to understand after a certain period where the root of problem lies.

Besides, if you start focusing on day to day activity it will help you a lot and as a result you can easily find out where is the root of the problem. On the other hand, keeping an eye properly on excel sheet as well as balance sheet will help you to understand the rate of growth.

4. Identify the target consumer:

Perhaps you have ever heard of the concept of target consumer base but it is something one of the important part of sales. Your target consumer base depends upon strongly on the type of products your company manufacturing. Thus, before analysing who is your target consumer, make it sure for whom you want to manufacture.

For instance, being an entrepreneur, if you are targeting teenagers or college goers as your target consumers then the chance of earning profit will be higher than ever.

5. Take help:

Being an entrepreneur if you are thinking that you will be the boss as well as employee then it is completely wrong decision. As, everything you can’t do with your own. Rather take help from experts, such as hire an accountant to keep an eye on day to day profit and loss.

Emma Parker

Emma Parker is a financial counsellor at LondonLoansBank and has been serving for over 5 years. She is a psychology graduate from the University of Glasgow. Since she has keen interest in the finance field, she pursued a diploma course in banking and finance that led her to opt for her current career. She assists people choose the best loan based on their current financial situation and credit score. As Emma understands how people react to money problems, she gives them a helping hand to solve their financial complications.