5 Entrepreneur Mistakes to Avoid

Coffee Computer Typing 5 Entrepreneur Mistakes to Avoid

Avoid making these entrepreneur mistakes common to many beginner start-ups. Many entrepreneurs unknowingly set themselves up for failure, ultimately leaving themselves scratching their heads when their business is unsuccessful. Start taking the necessary steps to success by learning from these common mistakes.

1. Assuming What Customers Want

Probably the biggest mistake that most beginner entrepreneurs make is assuming they know what customers want, without doing any research or even discovering who their target audience really is. Knowing who your target audience is, and what they actually want, is essential to being successful in business.

The purpose of business is to satisfy the needs and wants of customers, so the fastest way a business can fail is to make this mistake. On the contrary, one of the best ways to develop new products is to solve customer problems. However, if an entrepreneur doesn't know what problems need solving, then they may miss out on a great business opportunity.

2. Ignoring the Competition

Knowing what your competition is doing is essential for two main reasons. The first reason is the fact that competition can put you out of business, especially if you are new to the market. The second reason is because knowing how your competition meet the needs of your target audience can reveal how your business might be able to establish a competitive advantage.

If a competitor's product doesn't solve a problem that your product does solve, then you have found your key to a potentially successful advertising campaign. However, if you are not aware of the key players (target audience and competitors), then you won't have the information you need to make wise decisions.

3. Making Price Your Only Competitive Advantage

In the modern world, money is the primary means by which value is communicated. Therefore, if you sell a product cheaper than the competition, without communicating to your target audience the equal value, then consumers will automatically assume that your product is lower quality.

In addition, if your only competitive advantage is price, then competitors may be able to lower their price until they push you out of the market. Don't make the mistake of making price your only competitive advantage.

Other ways to create a competitive advantage include: creating a higher quality or higher value product, reducing costs by increasing efficiency, providing excellent customer service, as well as focusing on Customer Relationship Management (CRM) in order to build a base of loyal customers who will provide repeat business.

4. Trying to Grow Too Fast

Just like the turtle ends up beating the rabbit, slow and steady often wins the race. At the very least, making the mistake of trying to grow too fast may cause a business to fail by allowing important steps to be skipped (like building customer loyalty). Customer satisfaction may drop if a business focuses too heavily on growth.

Employee satisfaction may also drop, which can hurt a company financially if the employee turnover rate rises too much. If a business involves a lot of start-up financing, then growing too fast may cause the business to go into bankruptcy.

Overall, growing too fast is generally just a bad idea, because important priorities may "fall through the cracks" and result in eventual business failure.

5. Failing to Innovate

Innovation is absolutely essential for business survival. If a company stops innovating, then they will quickly fall behind competitors and go out of business. One of the best ways to innovate and develop new products is to fully understand your competition and target audience. If you can develop a product that solves a problem that your competitors' products do not solve, then you may be sitting on a gold mine.

Failing to innovate can eventually destroy a business, while successfully innovating can have the exact opposite effect.

Article: Business Web Hosting

Article: How to Succeed as an Entrepreneur

Entrepreneur Articles

Enjoy this page? Share it!

Get more great stuff like this delivered to your inbox

YOU MAY ALSO LIKE

  1. 52+ Common Interview Questions and Answers

    Most job interviews consist of only 5 to 20 questions, almost all of which are variations of these 52 common interview questions and answers. The following guide provides suggestions on how best...

    Read More

  2. The Millennial Job Dilemma: Why Does Everyone Want Experience?

    Many job-seeking Millennials find themselves asking the same set of questions: Why Does Everyone Want Experience? How am I supposed to get experience if no one gives me a chance? Often Millennials...

    Read More

  3. 5 Expensive Common Mistakes Made by Millennial Entrepreneurs

    As a millennial entrepreneur, handling the funds of your business can be quite tricky. Our friends over at FindMyWorkspace.com discuss the expensive common mistakes made by millennial entrepreneurs...

    Read More

  4. Link Exchange and Backlinks for Business Websites: Link Exchange Directory

    Want to exchange links for your business-related website? The following is a list of ways to get backlinks, as well as a list of websites willing to participate in link exchanges. Submitting your...

    Read More

  5. Forex: How Much Money Do You Need to Trade the Daily Timeframe

    The answer might surprise you how much money you need to trade the daily timeframe in forex. If your forex broker uses standard lots, then in order to trade one micro-lot of 1,000 you only need...

    Read More

  6. How to Trade Forex with $100: Turn $100 to $1 Million in 3 Years Realistically

    Not only am I going to show you how to trade forex with $100, but I am also going to show you how to turn $100 to $1 Million in 3 years realistically in forex. Sound impossible? Let me prove it...

    Read More

  7. Forex Trend Trading is How to Win in Forex

    I’m going to prove to you that forex trend trading is how to win in forex. There are some who claim that it is foolish to buy something that is rising in value, but I think they are foolish for...

    Read More

  8. Advanced Forex Education

    Want my advanced forex knowledge? Learn how I ensure I win with advanced risk-reducing techniques and leverage management. Normally available for $50, you can have access for only...

    Read More

  9. Trading Forex: $1000 to $1 Million in 2 Years Realistically

    Is it possible to turn $1000 into $1 Million in 2 years? Yes, it is possible to turn $1000 into $1 Million in 2 years and it is even realistic with this consistently profitable strategy...

    Read More

  10. What is Leverage in Forex?

    Understanding how leverage works in forex is essential to being successful as a forex trader. The availability of high leverage is the primary reason why making money in forex has so much potential...

    Read More