6 Common Beginner Mistakes An Entrepreneur Makes

Doing what we love and care for is a dream for many. Most come out of the fear, and doubts and start doing what they want. They are willing to take the risk to start their own business.?

A study shows that only 10-20% of businesses succeed in the long term. Around 80% of businesses fail within the first five years of commencement.?

You may wonder why not all businesses succeed and why this big number is in failure.

Well, there are a lot of reasons that a business fails and the main reason for the failure is the decisions that an entrepreneur makes.

A few of the main ones are:

1. Lack of planning:

An initial mistake a person can make is stepping into the world without any solid plans. When you are risking everything and doing something new, you must have a plan for every step you take.

When you feel lost, your plans are what gives you the courage to move forward and show you the right direction. You don’t need to have a detailed plan for the whole process. At least planning for the next few steps will relax you, and take off a burden.?

1. Trying to do everything alone:

When you have a new diamond ring, you just like to show off that ring to everyone. You will be so scared that you won't even let anyone touch the ring so that you can keep it safe.

A business is just like that rare diamond to its founder. They won't even let anyone near, fearing that others will destroy what they have built from zero. They try to do everything by themselves. Simply put, ‘They try to be a jack of all trades but won't master anything’.

Unwanted tasks will take up a lot of their time and they feel frustrated by not doing enough. They won't have any time to do the necessary development tasks that need their attention.

1. Ignoring feedback:

One common trait among business owners is that they have self-pride. Of course, they have taken risks and done something not everyone can do. It is okay to have self-pride (to some limits).

Some business owners’ self-pride prevents them from acknowledging mistakes and listening to helpful feedback. These kinds of business owners will turn a blind eye to those acknowledgements by thinking their business is doing good.

They will realise the mistake only when they start seeing visible problems.

1. Underestimating costs:

In the initial stage, it is easy to fix a budget and accumulate funds according to that. But once the business is operational, the surging costs are out of our hands. Bills started showing up unexpectedly and we had no other choice than to pay them.

Instead of crying about the bills and worrying about more bills, the smart thing an entrepreneur can do is to have an emergency fund( if he’s a small-time entrepreneur) or have someone (like an investor) back him up.

When things start going downhill, one should act on that immediately.

1. Work-life balance:

Many people work tirelessly, believing the famous quote ‘Hard work never fails’, without taking necessary breaks. They dont have time for personal life. Those people are either working or thinking about work all the time. You can always find them working.

They won't care about their health, body and mind, especially their closed circle and work. As an entrepreneur, you should have time for everything. You can neglect yourself and everything around you for your business now. You will receive the same in the future. Your health will be in a bad state and your friends dont want to hang out with you anymore.

Hard work is essential but balance is necessary.

1. Giving up too soon:

Imagine you have planted a mango seed today with utmost love and care. Will you expect it to bear fruit the next day? It does sound absurd right? Just like that, you can’t expect your business to be successful too soon.

Few people will have a small problem, won't try to solve it or find the root cause of it and will stop everything and give up.

Some entrepreneurs who didn't see immediate results stop putting effort into the business. When they realise they have to come out of their comfort zone and work irrespective of the time, they'll lose interest in achieving their goals. They just stop working.

Entrepreneurship is not only about starting a business and earning profits. There is a lot more to that. An entrepreneur is a new parent. Just like a fetus starts growing in the womb, a person has to be prepared before starting a business. They can learn how to parent on the way.