As a new entrepreneur, you wear multiple hats and handle everything that comes your way. Launching your business is challenging, but maintaining it's also a constant struggle. The good news is that previous entrepreneurs made similar mistakes paving the road to avoid them reasonably. Here are six common mistakes with tips on avoiding them.
1. Failing to Delegate
One of the most common mistakes that new entrepreneurs make is failing to delegate. As a business owner, you may feel like you need to do everything yourself to ensure proper execution. However, in reality, trying to do everything yourself can harm your business more than help it.
It can lead to burnout and a lack of productivity from your team. It also sends the message there's a lack of trust, which can strain the relationships. Learn to delegate tasks effectively by giving others clear instructions and setting reasonable deadlines. It also means stepping back to allow them to do so.
2. Not Having a Clear Vision
Another common mistake that new entrepreneurs make is not having a clear vision. This is problematic and may lead to wasted time, effort, and confusion.
When you don't have a clear vision, it's hard to make decisions and stay focused on your goals.
You'll bounce from task to task without making any significant progress. Additionally, your team will be unsure of what they're working towards and may become demotivated.
It's necessary to take the time to develop a clear vision for your business. This means understanding your mission statement and what you want your business to achieve. It also means having a solid plan for how you're going to achieve those goals.
3. Choosing an Incompatible Partner
Choosing the wrong business partner can be a very costly mistake. This partnership will influence all of your business decisions. When you choose the wrong partner, you're essentially choosing someone not compatible with you. It can lead to tension and conflict, and a lack of progress. It can also be challenging to break free from an incompatible business partnership if things don't work out.
Take the time to find a partner that complements you and your business. This means finding someone who shares your vision and has the same goals. It also means finding someone you can trust, someone who has the same work ethic as you, and someone with whom you can handle disagreements peacefully.
4. Spending Too Little on Hiring Talent
When starting a new business, it's critical to be frugal with your spending. However, one area where we recommend not being frugal is with your hiring. Instead, it's a good idea to be willing to spend money on hiring the best talent possible. This is because hiring the wrong people can be very damaging for your business in the long run.
When making hiring decisions, think about the return on investment. Be willing to invest in your hiring process. Spend the time and money necessary to find suitable candidates. Be willing to commit to those candidates and give them what they need to succeed.
Look at factors such as how the person will impact your bottom line, how they will improve your team's productivity, and how they will help you reach your goals.
5. Failing to Automate Business Processes
Automation is key to the long-term success of your business. However, most new companies overlook it when going about their daily responsibilities. Business automation uses digital technology to make regular processes and repetitive activities more efficient and less costly.
Automation improves transparency and reporting possibilities while also streamlining document procedures. It eliminates human intervention, thereby reducing the scope for error and time to complete a particular task.
Remember to experiment with technology and think about every routine business aspect you can automate. For example, let's say you run a social media page for your business. Instead of uploading multiple times a day, consider automating the process using a tool like Hootsuite to schedule it in advance.
6. Not Planning for Failure
As a new entrepreneur, it's natural to be optimistic and think that your business will be a success. However, the U.S. Bureau of Labor Statistics estimates that over 45% of businesses fail in the first five years and over 65% in the first ten years. Therefore, it's critical to plan for failure and have a solid plan if things don't go as planned.
Have a realistic outlook on your business by understanding the risks involved and preparing for them. Be willing to make changes when necessary. Having a solid backup plan will help you keep your business moving forward.
If your business has salaried employees, you might want to factor in them while creating this plan. For example, create a plan for handling any layoffs or pay cuts.
As a new entrepreneur, it's completely okay to feel overwhelmed by the challenges of running a business. Just like with anything else, your company will rarely experience linear progress. Instead, you will likely struggle with many ups and downs before achieving sustained growth. The key here is to learn from the experience of others to avoid common mistakes when possible.