Mistakes Start ups make

· Mar 22nd, 2014 · 0 Comment

1) Underestimating initial capital
After thorough research, you might have finally estimated the magic number to get started with your investment. In reality, your initial estimate for the project runs out quick before the business breaks even. The rule of thumb we suggest to new start ups is multiply the money you think is needed to start your business by three. Now that’s your magic number if you know how to use the money well.

2) disregarding the need of potential customers
The initial business proposal you write is unproved theory. If it is your first time doing the business, you will not know exactly what your customers need. You have to conduct surveys and interviews regularly to understand your customers. Afterwards, give them exactly what they want. Do not be scared to deviate from your initial plan to satisfy their needs.

3) Falling for false hope
It’s good to be optimist when starting a business, but do not fall for false encouragements. 1000 people might tell you your idea is the bomb and it will succeed. Family members might say anything to encourage you and be nice to you. In reality, only less than 6 percent of them become your regular customers. The ultimate measurement of your business shouldn’t be how many people feed you with praises. Focus on MONEY. Yes i said it: Money. If there is no net profit, your idea might be the best in the world but it is worthless.

4) Thinking 8-5 is enough to operate the business
There is a common saying in entrepreneurship; “Entrepreneurs give up 40 hours a week job for their 80 hour a week business.” Business is like a relationship. You should think, dream, fantasize and live it. A business succeeds when it becomes your way of life and you don’t know any other way to live. You should think about it daily like you had a crash on a person in high school.

5) impatience
You can’t get rich overnight. If it was that easy no one would be poor. What differentiates you from millions of people out there with the same idea as yours is your resilience and patience.

6) Not documenting data and progress
Your mind has limited space. you can not memorize everything and expect to relate them like a computer whenever you need it. Therefore document everything on a paper. When you go to your office and try to come up with a strategy, it will be easy for you to pull your data and analyze the hell out of it without missing a bit.

By Gedi Yitbarek


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