Making mistakes as an entrepreneur is inevitable especially at the early stages and sometimes it feels like no amount of preparation really prepares one for these mistakes. One can only do what is expected and try to mitigate the errors.
As challenging as starting a business can be, it is not the only challenge an entrepreneur will face.
The United States Bureau of Labour Statistics show that more than 20% of new business goal within their first two years of operation and about 50% of companies die off in their first five years of operation. As alarming and sad the statistics are, it is a wake up call to budding entrepreneurs.
Lack of experience has been fingered to be one of the reason why businesses fail.
In this article, we will be looking at FIVE COMMON MISTAKES budding entrepreneurs make and possible ways to avoid them:
- Absence of a business plan: Who starts a journey without counting the costs? Well, many businesses started out of “passion” and zero plan. Just plain vibes and “let’s-see-how-it-goes”. Having a good business plan and adhering to it will cure many businesses of the “failure virus. As you plan to start that business, you should talk to us at Espact today so we can assist you with a custom made business plan.
- Lack of marketing: Having a good product is not enough. Talking about it and getting it into the hands of those who need it is another. Many entrepreneurs are often caught in the web of depending solely on word of mouth marketing.
This should not be the case. Entrepreneurs should leverage social media and other forms of marketing.
- Hiring Based on Cost: It is normal to want “cheap labour” because it can be an effective way of reducing how much is spent. However, in the long run, this effect is seen on the business. Most times, cheap labour translates to hiring inexperienced, unreliable and unskilled persons who cannot help the business grow. Avoid this.
- Relegating Technology: Technology in today’s world is an essential and any business that neglects it is heading towards failure. Technological advancement were made to ease the burdens on entrepreneurs and it is only ideal to use them when necessary.
- Wrong pricing: Part of what having a business plan helps one to do is setting the right price for the product.
A proper research about other competitors and the prices of their product is key in determining one’s pricing. Ensure to carry out a holistic market analysis on this before starting out. Be careful not to underprice or overpriced.
Have a business plan, invest in marketing, hire professionals within a reasonable budget, incorporate technology and set the right price.
Would you like to feature on our media platform or are you in need of:
● Business Plan Development
● Brand visibility and marketing
● Digital Skill Training
● Content Development
● Growth Plan Development, etc.
Then, you should contact us at Espact today via-
Visit or website on www.espact.com or WhatsApp/call +2348081553042