Embarking on the journey of starting a new business is always an exciting adventure, but it also poses certain challenges to the new entrepreneurs. Especially in not-so-stable economies, entrepreneurs must navigate through a series of difficulties to be consistently successful, and knowledge as well as resources in areas such as human resources, finance, marketing, and various other aspects are non-negotiable. While expecting flawless and rapid growth in this process may not be realistic, avoiding some common mistakes -which we will be mentioning in the following lines- is possible.
So let’s take a quick look at some of the most common mistakes new entrepreneurs make.
1- Inadequate Market Research
Many new entrepreneurs, fueled by the overwhelming excitement of starting a new business, may dive into the venture without conducting sufficient market research. Creating a successful business model is challenging without thoroughly understanding the needs and expectations of the target audience, and, of course, the market saturation level. Insufficient market research makes entrepreneurs more vulnerable to risks, emphasizing the crucial importance of prioritizing this stage.
2- Bad Financial Planning
When it comes to a new venture, one of the most crucial steps, as one would expect, is organizing and managing financial resources. Mismanagement of financial aspects is a major reason for the failure of new ventures. Therefore, entrepreneurs should create a detailed and realistic financial plan, always prepared for unexpected financial challenges- this is, again, more true when it comes to unstable economies.
3- Building the Wrong Team
Building the right team is always one of the key factors in entrepreneurial success. Each team member’s skills should align with the requirements of the business. However, new entrepreneurs often tend to work with friends and/or acquaintances, which may not always be the best choice. The selected team members must possess the skills and experience required by the business, and it is always better if they are able to work in harmony.
4- Not Paying Enough Attention to Feedback
Considering and acting upon customer feedback is one of the healthiest ways to improve a product or service. However, new entrepreneurs may sometimes focus excessively on their own vision, leading them to ignore customer feedback. This oversight becomes a common mistake. Although having a vision and following it is a must, one must not ignore the feedback -positive and negative- of their customers.
5- Bad Sales & Marketing Strategies
Without effective marketing and sales strategies, even the best of the products or services can fail. New entrepreneurs may lack sufficient knowledge in marketing and sales or may allocate inadequate resources and/or people to these areas. Utilizing tools such as digital marketing, social media, and content marketing effectively, with the help of experts, will significantly contribute to the growth of the business.