Ways to avoid some of the most common mistakes new Businessmen make
by Hi-Tech on Jan.16, 2012, under Business and Trade
Making mistakes is part of the process of building a company. Quickly recovering from them is what’s most important. It’s all part of the adventure of entrepreneurship, which will require all of your stamina, drive and determination.
When you notice an opportunity that has never occurred to anyone else, there are certain steps to turning your vision into reality. You must formulate an innovative business plan, find funding, hire the right people to carry out the plan, and then step back from your role in the business at exactly the right moment.
Let’s take a look at these steps, and also at ways to avoid some of the most common mistakes new entrepreneurs make.
Step 1: Stay on Target – Stay Focussed:
A mistake often associated with the first step in Business is an entrepreneur’s inability to clearly and concisely convey his idea to others such as potential investors, partners or potential employees. An associated error is lack of focus. Clearly define your goals and strategies, then establish a timeline. Don’t let the other possibilities or hazy dreams distract you from achieving your goal.
Step 2: Be Realistic About Costs
Don’t underestimate the cost of starting your new businesses — you’ll just diminish your chances of success. Keeping your expenses under control is vital, but don’t confuse capitalization with costs. As we all know, There are many new businesses in the market who do not even have the funds for one year of expense. Under-funded new businesses are doomed to fail from the outset.
Step 3: Hire the People You Need, Not the People You Like
As tempting as it may be to staff your new business with friends and relatives, this is likely to be a serious mistake. If they don’t work out, asking them to leave will be very tough. One of your goals should be to find a manager who truly shares your vision, and to whom you can someday confidently hand the reins so that you can carry out the next step.
Step 4: Know When to Say Goodbye
A great entrepreneur knows when the time has come to leave the CEO/M.D. role. Its not easy, but it has to be done. Very few Business owners make great managers. Stepping back doesn’t mean turning your back on your business. Founders / Owners shouldn’t hesitate to re-insert themselves into their businesses when necessary
Source: Entrepreneur.com
