As in any other business, a beginning entrepreneur can, and will, make mistakes.
This is inevitable, no matter how much he studies the issue beforehand.
Each situation is individual and in each one completely unpredictable complications may arise. But at least there are a number of mistakes that can be avoided by simply reading about them.
A business that does not solve the main problem of the audience. When creating a business, you need to think not about what the entrepreneur personally likes and what he would be interested in doing, but about what the target audience for which the business is being created needs.
For example, if a person wants to deal with goods for animals, and specifically expensive special glasses for dogs, then he can fail for the simple reason that people do not need these glasses at all and no one will buy them.
A continuation of the first mistake is mistake number 2. Before deciding on the main goods or services, the market must be studied.
Not knowing the target audience, popular products, competitors and their strengths and weaknesses will lead to failure.
A store or any other business should have exactly what the target audience needs, and it should be presented in such a way that customers go there, and not to competitors.
3. An entrepreneur must understand what he is going to offer to the market. If a clothing seller, for example, does not see the difference between cashmere and cotton, then he will most likely have problems.
It will be impossible to adequately select a product or supplier, and buyers will not go to a person who cannot tell anything about their product; they would rather go to a place where they will be consulted in detail and explained why they need to buy one product and not another.
Error 4 is logically connected to the third one. The niche should be interesting for the one who started to work in it. It is impossible to work with enthusiasm in a niche in which there is no interest. There will be no motivation to develop this business at all, and because of this it will soon fade away, and it will be just wasted money and time.
5. Don't expect everything at once. Development doesn't happen in a day or a month. It will take time to attract people, to make the enterprise known and heard.
You can’t close after a month, just because in the first month there wasn’t a million rubles in revenue.
6. Every person needs employees. Without them, it is impossible to do any business for a long time and at the required level.
Maybe, to begin with, it will be enough to have one employee who will be a universal personal assistant on all issues. Or one salesperson, thanks to whom you can get at least a couple of days off a week.
7. And if employees are hired, then the mistake may be a lack of trust in them. The feeling that no one can do as well, that they will definitely do everything wrong, and that they will cause more problems than good.
Because of this, the employee begins to be removed from all work, constantly standing behind him, checking, which leads to the employee having no desire to work in this place at all.
And at this point, the entrepreneur not only takes on all the responsibilities again, but also adds additional ones related to monitoring the employee and criticizing him.
8. The absence of a business plan is a serious mistake. Without it, there will be no understanding of what this business should be, what actions need to be taken and when, what goals to focus on, what goals must be achieved within a certain time.
9. Misdirected activity. First of all, an entrepreneur should be interested in marketing and sales. He should actively attract customers and actively make a profit.
Thinking about the design of shelves in a store where the shelves are half empty and the only customers are the occasional curious ones – it’s completely unreasonable.
10. Lack of finance. If there is only enough money to rent a space (and only for 2 months), and there is nothing left for purchasing goods, equipment, shelves, advertising, etc., then this is a failure. In such a case, it is essentially impossible to do anything, and after these, for example, two months, you will simply have to forget about this business and next time calculate your strength more adequately.
These are the top 10 mistakes that new entrepreneurs make. The rest of the mistakes will have to be learned from experience. But if you don’t make at least these, there is a chance that the business will not die out in the first days, weeks or months.
Earlier it became known that Sterligov disinherited two sons.
