20 Things Entrepreneurs Should Never Do in Their Life

Starting a new business or a startup might sound exciting at the outset, but no one can deny the risks and uncertainties associated with it. It is the initial stages that are considered to be the most crucial. Statistics say that most businesses hit a rough patch within two years of its working and come to a standstill within five years. It requires a lot of planning and hard work to pull off something completely novel. Failing to plan is considered to be equivalent to asking to fail.

There are some mistakes that entrepreneurs commit commonly, which contribute to the sorry state. It is essential to identify them at a nascent stage so that the same issues do not crop up again and again. The 20 things that an entrepreneur should never do in a business are as follows:

1. Not have a plan in place.

The first and foremost mistake is to dive into the market without chalking out a blueprint first. Every aspect like the financials involved, expected sales, the marketing strategy, etcetera should be sorted out before making that commitment. Failing to do so can be disastrous in the initial stages itself.

2. Not have a good understanding of the audience you are targeting.

Knowing your principal customers helps in making your strategy better. You will know what they expect from you, and you can devise your product accordingly. It is important to remember that a great commodity doesn't necessarily translate to an amazing business. A lot of it is dependent on understanding the latest trends and mindset.

3. Not be afraid of failing.

When you start a business, especially a startup, understand that you have an equal chance of failing as much as succeeding; you must execute your plans in the face of fear with determination and willpower. Therefore, do not let it hamper your mindset in any way.

4. Not be properly organised.

There are a lot of crucial aspects of the business that need to be taken care of. Being messy about it can hamper your progress decisively. Therefore, organise your business to make things simpler.

5. Not follow legal procedures for the registration of business.

A business can be a type of intellectual property that should be protected by the law. Not registering it under proper legal bindings can pose a lot of problems eventually. It can even act as a threat against your finances and time if it is not taken care of when it is due. Therefore, always be on your toes for it.

6. Not approve of contracts.

Contracts are a type of agreement between two parties between whom the business is conducted. It has a legal backdrop to it and also sets the objectives and expectations. Not taking contracts seriously can spell doom for your business.

7. Make bad investors as partners.

A new business is always looking for funds, and an entrepreneur can make some very wrong choices based on this desperation. It is important to remember that investors are not only for financial support but also for building the business's reputation even further. Therefore, be wary of the frauds as business partners.

8. Underestimate the need for capital.

Businesses do not run on a hunch or a gut feeling as far as the finances are concerned. There should be a credible source of capital to establish an organisation properly. You will tend to face a lot of blockades and issues along the way. You may have planned a scenario where everything runs perfectly, but it doesn't take much time for things to go wrong as well. Proper management of the capital is vital from this perspective.

9. Try to do everything single-handedly.

Sometimes it is ok to accept that you are not the master in everything and there are other people specialised in a particular job, and it is better to entrust them with it. Having trustworthy counsel by your side can also play an important role here. Therefore, keep company but make sure that it is a good one.

10. Hire too many employees too soon.

The hiring should only be done based on the magnitude of the business and not the employer's whims and fancies. If a part-time employee or a contractor is sufficient to do a job, there is no need to invest in a permanent employee. Hiring too many employees will increase the financial burden manifolds, making it a major issue soon.

11. Pay the wrong salary to yourself.

Some businessmen make the mistake of not giving themselves the right amount of salary from a business's earnings. It can become too much sometimes, but other times it can be too little as well; this also applies to your employees. Sit with your partner if you have one and a financial counsel and determine the correct salary prematurely.

12. Launch at an inappropriate time.

Some businesses are season or time-oriented and tend to run more during that period. Not taking advantage of it and launching at off-season can prove to be decisive. It will not be able to get the momentum of sales that you were expecting, and it can cause a dent in your spirit as well.

13. Expand excessively and quickly.

Even if your business has caught the initial wind, entrepreneurs make the mistake of taking quick inspiration from it and expanding more. This increases the risk factors as there might be several confounders for the increased sales. A proper analysis must be done before coming to such an important decision concerning your business.

14. Not create a marketing strategy.

A marketing strategy is very crucial these days. It is the only way to reach out to the maximum number of people. Digital and traditional marketing both play a vital role here. If you do not have a potent strategy in place, your business will not flourish.

15. Hire the wrong employees.

The basic requirements of the employees that should be hired by you are that they should be sincere and hardworking and also specialised in the work they are being hired. Go for stringent measures for making the selection to avoid any problems later.

16. Not understand what the business demands.

A business demands your full-time presence and medication more often than not. Only when you put in some additional effort will it be able to catch the wind. It might look all rosy and fun from the outside, but it is a different ball game on the inside.

17. Make promises that cannot be fulfilled.

This creates a very bad impression initially itself. Do not develop the habit of boasting about your business to everyone and not standing up to it. In case you have to promise someone something, it should be within the grasp of the business's capacities appropriately.

18. Not have a bookkeeping process in place.

A bookkeeping process keeps track of everything. It helps to organize your business and also adds credibility. Not doing so can lead to several issues in the long run.

19. Undervalue the product.

If your business is based on the sale of a particular product, you must believe in the product's utility first. Only then you will be able to advertise it with a full heart. Undervaluing it can be a major issue here.

20. Waste too much money unnecessarily.

Money is of immense value in a business. You should look at the best ways to save it. Instead, entrepreneurs make the mistake of investing too much in things that are not really needed. Stop doing that.

All the points mentioned above might sound rookie at the outset, but they play an influential role in the success or failure of a business. As an owner or an entrepreneur, make sure that you do not make these mistakes yourself, and you can watch your business flourish in a short period.

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