From recent studies, it has been identified that more than 50% of startups fail within the first year. The mistakes first time entrepreneurs make have contributed much to this statistic. If you learn what those mistakes are, you are already in a much better position to help lead your business to success. Here is a list of 5 common mistakes first-time entrepreneurs make.
Pretending they know everything
Most of the first-time entrepreneurs pretend they know everything. As a result, they fail to seek others for help, which can lead them to make costly mistakes. Whenever or not you feel that you need assistance, you should always ask for it. However, you need to make sure that the person that you reach out has the ability to provide answers to your questions. There is an amazing entrepreneurial community and plenty of people who would come help you when you are in need.
Starting a business that you are not familiar with
There are entrepreneurs who start businesses with people they do not know. If you want to become a successful CEO, you should never do that mistake. You have limited time, money and resources to invest and you should invest them in a business with someone you are familiar with. You also need to be careful not to start the new business in an extremely competitive field which you are not familiar with.
Giving away capital for the sake of control
Many first-time entrepreneurs stop at nothing in order to get the help of an investor. If you come to a situation where you have to give away a majority share in the company, you should realize that you are in a dangerous situation. When your business venture is still in the idea phase, you will need to continue bootstrapping it. When you have a solid base, you should start looking for an investor and register a company.
Listening to everyone
When you have started a new business, you may feel like it is better to listen to everyone. Unfortunately, this is one of the costly mistakes that most of the entrepreneurs make. Every single person that you approach has his or her opinion. These opinions can differ so much from each other that you will not be able to implement all of them into your business. If you try to do so, you would end up failing. Therefore, you need to be careful enough to get only qualified opinions from selected individuals.
Hiring your friends to the business might seem tempting because you already know them. You might think that hiring friends would help you create loyal staff. This is one of the biggest mistakes that you can make as an entrepreneur. If your friends do not perform, you will be reluctant to fire them, which can eventually lead your business to failure.
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