Top mistakes that new businesses made
Today we will talk about the Top mistakes that new businesses made which I have seen most of the entrepreneurs do. I had listened to more than 80 business ideas and I had seen how they executed those businesses. I had seen many problems in those business ideas and along with that many people come to me for business consultation so I know where most of the people lack. So today I will combine all those problems and tell you what you shouldn’t do as a businessman or if you are thinking to start a business so you should be aware o these biggest mistakes
1. Lack of Planning
Let us check with an example people want to open a food outlet but they don’t know which kind of food they’ll sell they sometimes think that they’re going to sell that product which can sell most of the time like dosa, idli, samosa, etc. But what’s the proper direction? As a businessman, you must always have the proper direction and a few people are the whole opposite of it they spent most of their time only planning and never execute they spent almost 1 year only planning they always run after an ideal plan. they require to create a full-proof plan which never fails. within the initial days of each business, you’ll see lots of ups and downs it’ll never be like that you just start a business and can never face any problem in life Even sometimes a business that started a long time ago face losses in their journey. It’ll never happen such as you make an inspiration and things will never go against it.
2. Over Planning
Some people will do a lot of planning and a few people don’t make one plan There are some drawbacks of getting lots of plans First, I’ve got wasted my 1 year in only planning the items. If we speak about Nokia then they did lots of designing within their initial days while launching their product as an example – that point 625 processor was trending in the market and that they started functioning on it and that they continue their work for six months and once they launched Then another new processor launch and all the plans goes vainly Because their technology is outdated now and market requirements have changed The mindset of our targeted audience has been changed. So this can be one in every of the most important drawbacks of doing protracted planning together with that, the merchandise that we’ve launched isn’t in demand now. So so as to sell that product either, we are going to sell in loss or within the low-profit-margin and not only that each one the value that occurred while making the merchandise is a loss for the corporate.
Some of the best business planning books to read are,
3. Unwanted Expenses at Early Stage
Most of the startups fail in their first year Because of the problems that I am going to talk about now The next problem I have seen that they usually have a big expenditure They had a lot of expenses in their company Because of those high expenditures their business model becomes faulty and become non-profitable They thought that they will include everything in their product But then they got to know that they are going in the loss after executing that Some people even do not have the right calculations. They don’t know about is their business model is in profit or a loss Some people just keep doing business and after a year they got to know that they suffered huge losses of lakhs of rupees. Then they think that the business we are doing is not good But if we had seen in starting that how much profit will become and how much will be lost How much will be revenue or how much we will have to expense and etc so after judging all the things then you should make a business plan which will never fail.
4. Time Management
And another one is to save some expenses they waste their precious time. They are like I will do everything like, cleaning of office, brand deals, delivery of products, etc Now what happens is you had wasted your specific skills set while doing unnecessary things For example – we wake up in the morning with 100k energy and what we did is spent our energy in some unnecessary work and because of that we got no time and energy for the main work and ultimately business goes in losses So you should take a middle way neither spend more money or nor try to save all the expenses just do expenses wherever it is necessary. You don’t have to do all the things yourself because you are not a god.
Some of the best Time Management books to read are,
5. Late to the market
The next thing is which I want all the people to do Neither run after a perfect plan or nor start a business with no plan just stay in the middle path Neither spend too much nor try to save all the expenses Just do whatever is necessary and start working on your business And keep modifying your product and services according to the market needs and requirements We have to keep taking feedbacks from the market and our target audience so we can improve our product or services better and better.
6. Copy Paste Business Model
The next big problem is a copy-paste of our business model Someone else doing the same business and he is making a profit so I will do the same thing to my business But one thing we have to understand that he had different circumstances, different situation, a different mindset and we have different So how can we become profitable by copying the same thing? The exception is always there like ola and uber but only sometimes personally I don’t like copy paste business ideas We have to work on those problems which we are facing personally If you think there’s a problem that everyone is facing and you can do something towards it. So just start doing it Don’t copy-paste your business model.
7. Afraid to Take Risk
What should you do is start working from today and launch your business from the coming Monday Just face whatever comes in the journey and keep moving forward But what people think they will start with the perfect plan or something else People do these because they are afraid to fail Never afraid of the failure just start doing the work and keep your expenses as low as you can So if you face losing it won’t hurt you. You can’t become an entrepreneur if you will afraid to fail or start so just start doing your business Always learn from your problems and keep modify your product or services.
The next thing you have to keep in mind is patience. You will never get results in a single day It won’t happen like you will become millionaires overnight after starting the business. You have to set a boundary line and until you have to become profitable. There are various businesses that become profitable from day one but we won’t run after the profitability from the first day. What we have to do is calculate your cash burn rate or monthly expense in advance. You have to include all the basic things In planning like till when you will breakeven, how will you grow your sales and many things. All these things should be included in the planning.
9. Lack of Marketing Strategy
The next problem is marketing. I personally believe that every big entrepreneur should have a marketing mind For example – Suppose we have reached a big level and we started to outsource the marketing services. But along with that, we should also have a proper understanding of the marketing CEO of every big company usually good at marketing, do you know why? If you are good at marketing then only you will be able to deliver your product to your target audience. If you will have a marketing mind only then you will avoid marketing myopia. You will not think like my product is the best and I don’t need any feedback. Along with that you will also able to understand pricing, branding, packaging, etc. and only a marketing guy can understand all these things.
Some of the best Marketing books of all times to read are,
10. Leadership Quality
The last thing is leadership quality. I have seen many people afraid to talk to their employees. They usually think that he will get hurt or blah blah You have to understand you are a leader and you need to identify their talent. For example – you have a team of 5 people so you need to assign tasks to each of them according to their talent This is called leadership rather than abusing your employees or disrespecting them. Leadership is all about providing the motivation so they will work hard so everyone should have some sort of leadership qualities in order to move forward in life Every CEO or big entrepreneur has these basic skills. If you don’t have leadership quality so don’t worry about that You can easily grow it by learning about good leadership qualities in-depth. I agree leadership is a kind of born talent but it can also be developed by practicing hard.
Some of the best leadership books to read are,