5 Mistakes New Entrepreneurs Make that Kill their Businesses
Today we’re going to go over 5 mistakes new entrepreneurs make. If you can avoid making these you can shorten the time it’ll take between where you are now & where you want to be.
Mistake 1) They’re not patient enough
In this instant gratification culture we live in, many people are under the impression they can just start a business & a month later it'll be paying them the equivalent of a full time income or more.
Now, is that possible? Of course. But the reality is for most aspiring entrepreneurs it’s going to take a lot longer than that. Not only do you have to spend time learning & MASTERING that business to succeed, but the businesses that will actually stick around for the long haul take time to build.
Chances are anything that’s enticing you with short term profits, will be just that…short term! Then you’ll have to start all over again somewhere else.
I’ll quote Jeff Bezos’s here, “seek instant gratification or the elusive promise of it & chances or you’ll find a crowd there ahead of you.” Moral of the story: don’t chase business models or listen to anyone promising you instant success.
Mistake 2) They start spending their profit too early
When you start to see some success with your business, your first inclination might be to start spending some of the profit. Now, there’s nothing wrong with spending some of the money you earn, but you definitely need to be wary falling into an improved lifestyle trap.
What happens with most new entrepreneurs that see success is they start to spend a lot of their money signing up for liabilities they don’t need & then their business (& most importantly their customers) suffer.
The business that initially paid for that new lifestyle is now required to maintain it. And they constantly need to siphon money out of it to fund that lifestyle, instead of reinvesting the profit to grow it.
Mistake 3) They don’t try enough different things
I talk to failing Entrepreneurs daily & a big problem a lot of them face is they’re trying to fit a square peg into a round hole…meaning they’re trying to force themselves into a Business Model they don’t like or care about simply because someone told them it was something that would work for them or it seemed to be what was making money right now.
But this is a recipe for disaster. If you don’t like or care about the business you start, it’s almost a virtual certainty you’ll fail. You won’t be willing to do what it takes to make it successful. You won’t be willing to put in the extra hour on a Sunday to make sure it’s off & running on Monday. And you won’t be willing to put in the extra work to out maneuver your competitors.
So instead of trying to force yourself to succeed in a business you don’t like, why not start one around what YOU DO LIKE. You’ll be much more successful, it’ll come 1000 times easier, & you’ll be much more happy doing so.
Mistake 4) They diversify too early
I’m not talking about your stock portfolio here. I’m talking about the business models you choose to spend your time on. This might sound counter intuitive to the last point, but stick with me here.
You definitely need to try a bunch of different things to see what you like & you’re good at. BUT when you identify what that is, you must go ALL IN & stick with it. That means not trying to do too many things at once.
You can certainly branch out to multiple streams of income & multiple related businesses in the future (keyword is RELATED there)….but DON’T jump the gun. Focus on mastering one thing at a time. ONLY when you master that first business & you can afford to take some of your attention off it to grow another related business should you attempt to do so.
A massive mistake new entrepreneurs make is try to grow multiple new businesses at once. Then they only ever end up at being mediocre at a bunch of things.
Mistake 5) Thinking about themselves & THEIR bottom line, instead of the customer
I’m not trying to be some hippie telling you to go do aid work for the rest of your life. I get that we’re all starting businesses to make money.
But the truth is the more you focus on what’s good for your customer, the quicker & easier money will come. If you’re focused on your ONLY your profit, you could begin to neglect the most important thing to your business…your customers!
So, focus on building a long term business that provides the best product or service to your customers as possible. Then work to improve that every single day. The “not so secret” secret of business is that it’s not complicated. The person or company with the best product usually wins in the end.
If you'd like to see the video version of this article, you can check it out through the direct video below.