12 Things Every Entrepreneur Should Avoid
Mistakes are a part and parcel of every entrepreneur’s journey; after all, to err is human. However, armed with the knowledge and advice from peers and well-wishers, CEOOs of new start-ups can plan ahead to avoid some of the most common mistakes of running a business.
They must remain forewarned about all kinds of challenges and obstacles, from insufficient funding to tough competition; from flirtatious customers to insufficiently skilled employees, there could be problems galore.
However that said, one of the most serious problems you may face is from your own self if, as a CEO, you happen to make ONE wrong decision. This is because, no matter what may be the cost of an employee’s silly mistake, the cost of a CEO’s wrong decision would always be bigger. Therefore, you as the captain of the ship have to be forewarned to be extra cautious and hold yourself to the same high standards of accountability as you hold your employees, indeed you should have tougher standards for yourself.
Never set sail without a business plan
Without a plan you are like a sailor on a high sea without a navigation map. Where could you possibly land up? For all you know, you might go adrift. A business plan is the most important tool for making an elevator pitch to an investor, or even a potentially big customer. Always be ready to clearly and quickly state your business. “In 2018, you must learn the ability to strategize for achieving long-term goals. Start by breaking down big goals into small, incremental wins that lead to major successes over time,” says John Pilmer, an entrepreneur consultant in ‘7 Tips to Guide Young Entrepreneurs’ for Entrepreneur magazine.
Never sit on your laurels
That’s a common mistake, most young entrepreneurs, who strike it rich early on, make. Going by the wise words of Albert Camus, if “our life is the lump sum of all our choices” then the owner of a start-up has to be extremely careful in making the most courageous choices, be4cause playing it safe will not yield the high dividends you are eyeing.
“The dangers of playing it safe aren’t sudden, obvious, and dramatic. They don’t make headlines. They develop slowly over time and are almost impossible to pinpoint,” writes Margie Warell in an article on the necessity of risk-taking in an entrepreneur for Forbes magazine.
This is not to ask you to play dangerous all the time, but at least some of the times, taking care of course, to avoid the pitfalls of a ‘high profile mishap.’ After all, if you fail, you should at least know what knocked you down and not be taken in unaware. In short, be a risky but knowledgeable player and cover your tracks well.
Never hire an absolute unknown
“I didn’t listen to my instincts about a business adviser and almost lost my business. In my gut, I didn’t trust him, but he convinced me otherwise. My mistake was not verifying his claims,” confesses Hadari Oshri, the CEO of Xehar.com, a fashion tech company in an article for the Forbes magazine.
Doesn’t that sound familiar?
While, it may come across as the other extreme if you are only hiring from friends but, don’t be so dumb as to get on board virtual strangers, without checking their professional or even personal antecedents.
Finding the right person is undoubtedly one the bigger challenges that corporates face, but this is not something where you can cut corners. It may be a tedious and time-consuming process, but in the end you will be glad you undertook it.
Don’t join a venture simply because it’s your friend’s
This is possibly the worst mistake you can ever make. Just as you should never lend money to family or friends, you should be wary of starting a business venture with them. Familial relations don’t translate too well into business relations. Somewhere down the line, one or the other partner’s ego may slide into the picture and cause a rift. Avoid that at all cost.
Let focus be your buzzword
You don’t become a successful businessman by being a muddle head.
“I had the benefit of studying at a Jesuit monastery. We studied complicated texts and immersed ourselves, pushing our attention spans to the very limit. It’s like meditation in that you learned to direct your thoughts. It’s an active skill, like working out,” recounts Oliver Kharraz, the CEO of Zocdoc in Take It One Step at a Time.
He further advises, “Pick something that you want to think about, and only think about that. Don’t let anything else enter your thoughts. Try for five minutes in the beginning — and know that just like a marathon where you start with just a half mile to begin with, in the end you’ll be able to do it for hours once you train for it.”
Don’t busy yourself counting the pennies
If you start watching every dollar that goes out or comes in, when will you have the time to do strategy? Don’t reduce yourself to the role of an accountant. Don’t drown yourself in a mindless number-crunching game.
Choose to work with people, smarter than yourself
They will teach skills that no B-school can. They can eventually turn out to be your most valuable resource. “I’ve made lots of mistakes, but my biggest mistakes have always been working with the wrong people,” confesses Abraham Kamarck, CEO of True Made Food Inc.
Put your act together
“Disorganization is toxic. Missed deadlines, out-of-control expenses and the constant ‘where-did-I-put-that’ scrambling all act as friction on your forward momentum and growth,” warns John Wedding, CEO of MightyBargainHunter.com in 6 Major Financial Blunders Entrepreneurs Make for Entrepreneur magazine.
A cluttered desk can be disastrous as it can be chaotic for your memory disc as well. You will invite more stress in your life than you can possibly handle.
Organized people are not always perfectionists, but they chose to stay organized because they understand the steep cost they would otherwise have to pay. “They don’t get mired in projects that will be impossible to finish on time. In other words, they don’t let perfection get in the way of progress,” writes Brian De Haaff in an article, 5 Morning Rituals To Make Each Day Happier and More Productive for Entrepreneur.
Learn to say ‘no’ to a few things
“I used to say yes to every opportunity that came my way, and I was in a habit of always launching a new service. This cost me depth and quality. Now instead of trying to make a lot of mediocre things for a lot of people, I aim to make the highest quality things for very specific people,” says Michael Cazayoux in Why Entrepreneurs should just say no. His words make sense as you can’t stay productive if you remain over committed.
Making hiring decisions based on cost
A wag once rightly said, for peanuts, you will only get monkeys. If you want brains be willing to pay the market price, because you don’t get star employees dirt cheap. In fact pay them decent so they don’t get poached by competition, advices one expert.
Not a penny more, not a penny less
That should be your dictum for deciding margins. Don’t ask for the moon but don’t keep it too low either. Research your industry, find out the going rate and demand accordingly.
Last but not the least; keep asking yourself where are you going? Why is the new venture important to you? Are you adding value to the market?
If the answers to these questions are self-satisfying, rest assured that you will get there one day.