5 Common Mistakes Made By A First-Time Entrepreneur
When you make the decision to pursue a business venture, you are aware that the road is never going to be easy. As a first-time entrepreneur, unavoidable mistakes will be made along the journey. There are however a number of common mistakes made by first-time entrepreneurs that you should pay attention to avoid. If you’re curious which mistakes in particular, read on.
1. Taking risks just for the sake of it
Taking risks as a first-time entrepreneur is inevitable, however it is uncalculated risks which will get you in trouble. At the start of your venture, the level of risk you take will be an important factor in your future business success. When taking risks, be sure to calculate the possible outcomes, and undertake detailed evaluations as to whether the risk is the best choice.
2. Not seeking feedback
As an entrepreneur, opinion of your customers should mean everything to you. Even in the initial stages, it’s important to seek the feedback of your customers and take it into consideration. Sometimes what you believe is a great idea may not resonate well with your target market. If you have the liberty to do so, test your product within a small group in the early stages, and from there use the feedback to better your business.
3. Never networking
Whilst time is not a commodity you have as a first-time entrepreneur, even the smallest appearance at a networking event can do you the world of good. It doesn’t just help with learning from other like-minded people, you will also be able to meet key contacts which could help you sell, or provide you with essential advice.
4. Hire the wrong people
One of the most common mistakes made by first-time entrepreneurs is hiring people close to them. Whilst hiring a good friend or family member is the easiest option, it is likely not to be the best option. Business relationships with a personal contact tend to add unnecessary stress and tension to your work. Look to hire people whose strengths complement your own, and who have the skills that you need to progress.
5. Not seeking help when needed
Considering this is your first business venture, you are not expected to know everything. One of the biggest mistakes made is not seeking an expert opinion when needed. When necessary, seek the help of a specialist to help you succeed. Whether it is marketing, finance or HR – there will be someone who can help you.
What do you think?
Can you add any other mistakes that are often made by first-time entrepreneurs to the list? I’d love to be able to add to this list, and help entrepreneurs to avoid these common pitfalls. Comment your views below and join the conversation.
This article was written by Laura Hutton on behalf of the Australian Institute of Business. All opinions are that of the writer and do not necessarily reflect the opinion of AIB.