Mistake 2: Employing
Friends and Family
I’m sure you’ve heard it said: It’s all business, not
personal. This is true even for startups and millennial entrepreneurs. Employing
your friends and family in your company may not seem like a bad idea initially because
it's obvious that you can work easily well with these people.
However, the problem is when your friends or family are not
actually a good fit for the job, or they simply perform poorly. If you are
hiring them out of love or friendship, instead of their skills and knowledge, then
you are endangering both your business and personal relationships in the long
Taking the time to find the right people to work for you may
be exhausting, but investing in them could pay off well for your company in
terms of growth, productivity and customer engagement. After all, investment in
human capital is one of the most important investing activities for beginning startups.
Unsustainable Operating Expenses
Most millennial entrepreneurs are willing to tolerate
high-risk investments, and this sometimes translates into an obsession with product
development and over-the-top service add-ons that are not well-planned.
This excessive spending may be fueled by excess excitement,
and the desire to cater to fast-changing trends, but the truth is that adding
something new to the table also translates into a need for additional
resources, new logistics, and a new area of management in the business.
The expenses can grow exponentially! If you haven’t fully
planned for a new product launch, then the result will end up as poor product
delivery, unsatisfied customers, and negative returns. Certainly, startups will
incur significant expenses in the first few years prior to eventually breaking
even, but if your operational expenses are too great for too long, then the
company may go bankrupt.
Mistake 4: Poor
Planning or No Planning
Although many inventive and genius ideas stem from a
spontaneous “eureka” moment, creating and growing a business cannot succeed without
a detailed plan. You need to have a development plan (with definite timelines),
and a back-up plan when things are not going too well (especially when it comes
to money issues).
Mistake 5: Failure to
As the founder of a business, millennial entrepreneurs might
think that they are the only ones who truly know the ins and outs of it.
Although being hands-on during the first few years of establishing the business
is recommended, this does not mean that you should still be controlling
If you do all the work, then the business will never grow
beyond your level of productivity. It will stagnate and eventually fail.
The reason why you must hire employees, and eventually
managers, in the first place is to grow via accumulated productivity by allowing
them to take over the daily operations of your business. For the most part,
every young entrepreneur’s aim should be to take responsibility for building business
partnerships, growing, and expanding, while you delegate the rest to a great
Growing your knowledge is essential to success, especially
knowledge relating to your specific industry. Many millennial entrepreneurs
make the mistake of immediately diving into the world of business without
enough knowledge and preparation on their part.
This eventually leads to emotionally driven actions, poor
decision-making, lack of business planning, and ultimately poor financial
management. Without adequate business knowledge, many millennial entrepreneur
startups are destined to ultimately fail.
Gemma Reeves is a seasoned writer who enjoys creating
helpful articles and interesting stories. She has worked with clients
across several different industries including advertising, online marketing, technology,
healthcare, family matters, and more.
She is also an entrepreneur engaged in assisting other aspiring entrepreneurs in finding the best office
space for their business. Check out her company FindMyWorkspace