I believe that after having worked as an employee for several years, almost everyone would want to start a business or a start-up of their own eventually. It is quite natural that after having worked for long enough and acquiring the skills needed to run a business, anyone would desire to be their own boss and run their own show!
But is the whole experience as rosy as it really sounds? Is success in entrepreneurship guaranteed? Probably not! Research says most start-ups don’t make it beyond the 5-year mark, and some fail halfway before that!
While one may have all the experience required, the capital and the expertise might fail to make it through the journey in all its glory as an entrepreneur.
Let’s have a look at some of the key points that most small businesses end up ignoring, eventually leading to their downfall:
You know you want to have your own venture, but do you have a vision for it? This is one of the biggest rookie mistakes of most people starting with a business idea to execute. Make sure you create a vision for your enterprise and then work backward to succeed in this endeavor! Lack of a vision is going to get you lost halfway through with almost no chance of success.
This is the first and most crucial step when taking the leap of entrepreneurship. You need to have a detailed plan sketched out before you physically start setting up the business. One of the most common reasons for the downfall of an enterprise is not having a solid business plan in the 1st place.
Proper market research is the key to success for a start-up. How will you make sales or put your product or service across if you don’t know your target market? Do not let lack of knowledge of the market and proper research become a reason for the failure of your venture.
One may think they have enough funds to start a business, but most people don’t account for the hidden costs and have enough to sustain the start-up. Having a lack of funds is one of the simplest mistakes entrepreneurs can make, and hence to have a proper financial plan in place is of utmost importance as a small business.
A sound marketing plan and ideas to execute the plan are crucial for the success of a new business, and most people fail in this segment. If your audience is not going to know what you do, how are you going to make the sales and reach the profits you require to soar higher?
Delegation is a problem that a lot of entrepreneurs suffer from. When they start the business, they are a one-man show and get used to micromanaging every little detail. However, this can lead to burnout, and also keeping in mind that not one person has all the skills, relying on self to complete all tasks is a bad idea and never proves good for a business.