Common mistakes made by new entrepreneurs and some fixes
Those who have decided to become entrepreneurs, wishing them all the best for their adventure. They are becoming that because they have an idea for an amazing digital product and they believe they are on the right path. They surely are but maybe they ought to stop and think about it again.
Why stop now? Let’s check the reason: 96 percent of the projects fail to reach the market and approximately 90 percent of startups fold in their first year of operations. What budding entrepreneurs need to understand is that they must be sure where they are heading and the kind of difficulties they will face before they embark on this journey to start their venture.
To be an entrepreneur or not to be an entrepreneur?
A question that does seem tough and in reality, it is tough. A CEO of a well-known app development company Toronto saw entrepreneurs and budding business people rise and fall from grace each day. He often cited financial ruin as one of her life’s biggest worries. She has revealed that she had set up companies and startups through solid financial guarantees.
Another CEO from a software company in Israel catering to both mobile devices and computers has been involved in managing accelerators. He reveals that by helping entrepreneurs in their early stages made him see the real reason why they fall, and why they succeed.
Both of them suggest that budding entrepreneurs need to give the thought of entrepreneurship another thought, another brainstorming and think of another option. Money is finite and should not be wasted.
No budding entrepreneur should be discouraged but must be told about the realistic scenarios they will most likely be facing. Also, before budding entrepreneurs face another night without sleep, try to take another loan or tell one of their friends about their idea, it would be wise they do none of this.
They should read about the difficulties they face instead of being smitten by the success stories of a select few. Each budding entrepreneur went through a lot of tough times either becoming successful, selling their hard work to affluent investors to pay off debt and remain in good financial health, or ended up with debt and nightmares.
This article will help each aspiring entrepreneur to get things right and start on the right footing.
Often the hardest point is the initiation
There are numerous things that can prevent anyone from succeeding and some of them are as under:
- There are no finances.
- No strength left.
- No passion left.
- There are not many investors.
- The company lacks a minimum viable product (MVP).
- The minimum viable product (MVP) is not working.
But the biggest mistake most experienced business owners have discovered is developing products that only solves the issue entrepreneurs face. In another case, the problem is only faced by the entrepreneurs themselves but not by the whole target audience.
At times, entrepreneurs are quite sure that they have found the next startup, but they forget to carry out complete market research. Without examining the needs and issues faced by the target audience, There isn’t any valid reason present for them to continue spending time on the venture.
Experienced professionals in the information technology industry have compiled major reasons that often lead entrepreneurs to project failures, followed by solutions to those problems.
Do not quit the existing job
As odd as it may sound, it is a valid fact. To be successful in statistical terms, it is better for aspiring entrepreneurs to keep their jobs intact. Research conducted on almost 4,000 entrepreneurs across various age groups determined that those who did not leave their existing jobs were 33 percent less likely to flop in their new venture, compared to those who quit their jobs.
When people are having steady employment, they often do not need to worry about making money each month. It also has a positive effect on their sleeping hours. Often people force themselves to sleep for at least six to seven hours, else they won’t be able to work properly the next day. Hence, they also risk losing their jobs.
If people do not have the time to wake up in the morning for work, they can work on their project for almost 20 hours a day (or slightly less) and sleep between four to six hours each night. However, studies reveal that most entrepreneurs will stay focused up to 9 hours maximum after which their work does not become much productive.
It would be wise for people to retain their day job and work on their venture whenever they have free time. They should sleep at least eight hours each night. Hence, they will become more efficient in working on the product or project.
They will also have the least worries about finances, leaving them time for bringing original ideas in a much more creative manner. In general, sleep, leisure, sports, games and a good nutrition lead to a desirable lifestyle promoting entrepreneurs in multiple aspects.
There is an evident lack of knowledge in marketing
Numerous entrepreneurs often bring with themselves a lot of passion for the product, project, venture or company they plan to start. At times, they develop a fantastic MVP that the world has never seen before but somehow, they lack marketing knowledge (hire app developer).
The idea for the product may seem great at first sight and truly revolutionary but there is one catch: if no one hears about it (or isn’t willing to hear about it) how can the entrepreneur move forward?
Marketing is unfortunately quite complex. It does not work on the ‘one approach works all the time’ method. It is important that it be studied even in superficial terms, so basic concepts such as ‘Return on investment’ (ROI) or ‘Go to Market’ are understood, before setting up meetings with prospective investors.
Understanding different platforms, websites, social media marketing and platforms, sophisticated marketing systems, mailing systems and the like, will help entrepreneurs make progress towards mass marketing. Even the most basic knowledge can lead to effective and top-notch outcomes which can be developed eventually with professional assistance.
Marketing in the early stages is key to business becoming a success. If entrepreneurs can succeed and learn to include the first batch of users in their app, they will be able to get real feedback and get a better valuation.
They spend a lot of time in the garage
At times, entrepreneurs swoon with their product and forget about everything else. It is not about work, friends, family or possessions, it is about fundamental product progression. The ability to attract investors, quality control, developing features, and more. A lot of entrepreneurs end up being in the concept stage for a long time period.
A waste of resources must be avoided (money, time etc.). Entrepreneurs often admire their product because they often lose track of things that are key to success (research they did a few years ago is no longer valid now). Numerous matching products existing in the market. This makes differentiating factors compulsory.
It would be wise for entrepreneurs to venture out in the market and speak to potential clients. They should get to know them, allow them to understand the venture, understand the concept, let them provide feedback and add improvements to the existing idea.