Business can be a risky game and entrepreneurs are expected to bear the outcome from their business, be it sour be it sweet. During the past weeks, we’ve looked at two different business topics which channeled us on how to write a good business plan and top 7 small businesses entrepreneurs can start with low capital. Today, we will be discussing 7 common mistakes newbies do in small businesses and how to avoid them.
1. CHOOSING THE WRONG BUSINESS/PLACE:
So many newbies rush to become limited without a careful survey. We all know that starting a business is exciting but sidetracking the process in selecting such a business must not be overlooked. The majority of small business entrepreneurs choose the wrong business to start with do you know why? because they felt they’ve heard so much good news about that business in another locality and they felt such business can also make huge profit in their own street without proper findings if there’s a ready market for that kind of business in their locality.
As a result of choosing the wrong business to start off with, the entrepreneur might not be able to meet up with satisfying the needs of the customers because that’s not actually what the market is after in his or her environs. To solve this act of choosing the wrong business, the entrepreneur must picture the business future first and then make a detailed plan regarding feasibility study report before venturing into choosing a business. most importantly, his or her shoe must fit in the selected Business.
2. CHOOSING TO BECOME JACK OF ALL TRADE
When I meet young entrepreneurs and I ask them what they can do, and they start mentioning I can sell this, I can sell that. I can do this and I can do that. Wanting to do all at the same time is good, but the truth is to succeed in the highly competitive business environment of today, you just need to be distinct in some ways by doing what you know how to do best and be an expert in it and not becoming a jack of all trades and master of none. Focus on the business you feel you are very good at and explore it even if there are hurdles. Some entrepreneurs have ended up becoming a jack of all trades and master of none because today they see this business and do, another day they hear that a particular business is a new oil well, and they rush into it, as they keep changing business like wrappers without devoting time to one particular business time passes by and they wake up one day and realise they have done 7 business but has no business at all.
3. DON’T COUNT YOUR CHICKENS BEFORE THEY HATCH
This is another mistake most newbies make in Business. They always end up feeding their heads with thoughts of millions and trying to match up themselves with those who have spent so many years in a business. Most newbies end up working the Mathematics of earning millions even before they open their doors for Business. They end up counting unseen millions in their head and when they’ve finally launched their business and the imaginary millions they’ve been counting in their head is not forthcoming, they become disappointed and frustrated and choose to close down the Business.
4. TOO SOFT ON CREDIT
This is another dangerous mistake made by newbies in Business. Selling on credit has proven to be a fast method that leads to the shutting down of a business. As a young entrepreneur who’s trying to gain balance, learn not to be soft on credit. Don’t sell all your business on credit. Set a standard for your business else, friends, family, and neighbors will use your shop or business as a tool to send you packing why because you sell on credit. Don’t forget that, the way you decide on your business will be the same way they will follow you. Don’t be soft on credit for you’re the boss of your business.
5. DEPENDING ON LUCK
Most young Business owners have developed the so-called habit of seeing their businesses surviving on luck but they end up forgetting that in a business, the winners are those who don’t depend on luck instead they focus more on working smarter. Note that, your business is not a roulette spin that is based on luck because once you do and the luck is not forthcoming what happens? The newbies start feeling disappointed and will gradually start packing his or her business items one at a time and finally shut down the business completely.
6. NEGLECTING THE EXPERT DRIVE.
Everyone might claim to be an expert in a particular thing but the truth is that as a newbie, learn not to neglect those who have more ideas than you on that particular business. Don’t start a business without the contribution of an expert. As an entrepreneur, you might think you know it all but the reality is that you may still be some way behind valuable and undeniable knowledge. Don’t claim to be the alpha and omega. Seek for ideas and better ways to run your business and never neglect expert knowledge, remember iron sharpens iron.
As a newbie in Business, do not invest all your money in too many stocks. Strike a balance between supply and demand. Learning the rudiments of proper inventory helps controls and save the entrepreneurs money from drowning. Overstocking might end up leading to product expiration which ties up the cash of the newbies thereby leading to total loss of both the capital and profit.
In conclusion, newbies are expected to start on a small scale before going all out. Don’t fixate on mistakes or get demoralized by them., Learn from others. Think of what to do as a business. Never stop learning and trying new things.
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Have you or someone you know done any business mistakes as a newbie and would like us to learn from the experience then don’t forget to drop us a comment in the box below.