Building a business is never easy. First-time entrepreneurs should at least try to avoid the basic mistakes that are unfortunately still frequently repeated. One such mistake is making a bad choice in your business partners. You should not choose the co-founder only based on how much money he can invest into your business. Remember that you will work together on a daily basis. Start by thinking about your skills and qualities. Choose a partner you can work with and who will complement you.
According to the Business Insider website, other mistakes of first-time entrepreneurs include:
Misunderstanding the difference between the founder and the CEO
In small businesses, founders are usually CEOs. However, these functions require different qualities. The founder of the company needs vision, enthusiasm, a strong commitment, and the ability to formulate ideas and put them into action. The CEO must understand all the corporate processes including human resources, sales and marketing.
Trying to create products for all
If you want to succeed in business, you must understand that it is impossible to please everybody. Focus on specific products for specific customers.
Copying competition
Watching your competition is advisable. You should, however, not produce copies of your competitors' products. Any copy is always worse than the original.
Running out of money
First-time entrepreneurs are often not sufficiently aware of the fact that every thing costs money. When money is flowing only out of the company, you will inevitably be without money very soon. You will need budgets and close monitoring of expenditures in order to gain a clear overview of the state of your cash.
Excessive emotional involvement
Once you get too emotionally involved with a certain idea, you lose objectivity. You put on rose-colored glasses preventing you from seeing others' doubts. Always try to evaluate your business as realistically as possible.
Poor selection of employees
Resist the temptation to hire managers from large companies. These managers usually lack the ability to lead using their natural influence. They are accustomed to a certain hierarchy which does not exist in your company. Furthermore, do not make the mistake of placing employees into leadership roles based only on their intelligence. Intelligence is not the same as leadership.
No feedback from customers
Do not ask your friends, family members or investors about your company. Ask your customers directly. Without customers, you have no business.
-Kk-