Statistics show us that as of 2021, there are a total of 582 million entrepreneurs in the world, out of which over 20% of their businesses fail in the first year of starting. Only 30% of entrepreneurs can run their business for over 10 years, and are able to make profits from it, of which a mere 8% end up being millionaires. What makes an entrepreneur in the bottom 20% different from these 8% is not the fact that these millionaires don’t make mistakes, it is rather the fact that they are able to learn from them.

There are people who fall and learn, and then there are the smarter lot, who learn from the mistakes of others, so they don’t make them themselves. Hopefully, after reading this article, you fall into the latter category

1.DISREGARDING CONSTRUCTIVE CRITICISM:

“A well thought out critique of what you are doing is as valuable as gold” – Elon Musk

Unhappy customers are the most valuable assets to your business, since they are the ones who tell you what your product/service is lacking and how you can improve it. Most entrepreneurs chose to ignore the grievances of dissatisfied customers and bask in positive reviews, not realising that they should be giving negative feedback equal importance, if not more.

2. NOT KNOWING THE PURPOSE OF YOUR BUSINESS:

   All entrepreneurs know the “what” of their business. Most entrepreneurs know the “how” of their business. But there are only a few entrepreneurs who know the “why” of their business.  Without being aware of the change you want to bring about in the world, or the problem you are trying to solve in the community, it is impossible to succeed.  If you, as a producer, are unaware of the reason you are producing a product, there is no way a customer will know why they should buy your product.

3. HAVING AN UNCLEAR BUSINESS MODEL:

A business model is a plan that explains how your business will achieve its goals. It includes the company’s strategy and execution plan. While ideas form the skeleton of a business, execution and delivery are the flesh of the skeleton, without which no business can run. Having great ideas isn’t valuable unless you know how to implement these ideas in the real world and give them to your customers. Several companies often have great visions but fail to generate a way in which they can execute them.

4. NOT SETTING GOALS (OR SETTING UNREALISTC GOALS)

“Failure isn’t in not reaching your goals, but in having no goals to reach.”- Benjamin Mays

Thinking of the end before beginning is vital for the success of your business. Most founders don’t know what they want to achieve through their business. Saying “I want to be rich and successful” isn’t setting a goal. Framing a goal means creating a clear, specific picture of what you want to attain, for instance, “I want to sell 300 of my products by the end of my first year” is a goal. At the same time, keep in mind that setting unrealistic goals is equivalent to not setting goals. Goals must be practical and achievable but should continue to test your limits and ambition

5. BEING UNAWARE OF YOUR COMPETITION:

In a market, there are several businesses selling the same product or service. For instance, when you go to buy a phone, what helps you decide whether to buy an iPhone or a Samsung phone? Most entrepreneurs forget about analysing the market for competition and creating a product which has an edge over the other. It isn’t enough to create a product that is good, it is important to create a product that is “better”. Your product should have a unique selling point (USP) that draws customer attention. Only when you are aware of your competition, can you be better than your competition.

6.  NOT BEING PRAGMATICALLY PESSISMISTIC:

Most entrepreneurs suffer from not predicting their losses and worst-case scenarios. Estimating your worst position practically and financially can help you prepare better for it, or even avoid it. Apart from that, when it hits you, your business and your confidence will not be hurt by it since you already saw it coming. In this way it lowers the chances of you giving up or mismanaging the situation due to stress. This said, entrepreneurs shouldn’t be overly pessimistic, being optimistic for their company’s future and growth is also beneficial.

7. NOT BEING FLEXIBLE/OPEN MINDED:

The market is constantly evolving, just like a customer’s needs and wants. Your product should be able to reflect the same. Most entrepreneurs have a head-strong idea of what their product should be and expect that the same thing will be demanded ten years down the line, which is illogical. While vision of your product is important, it also necessary that the product caters to the needs of the customers. If a customer wants a red bag, you can’t give them a blue bag. Your business should be able to add features to your product. Adjusting and keeping up with change in market, and consumer demand is key.

8. NOT BEING EMOTIONALLY INVESTED:

“The only way to do great work is to do what you love”- Steve Jobs

Failure is an inevitable part of being an entrepreneur, but the willpower and courage to keep going is what counts, however it is also something that most entrepreneurs lack. You need to do something that excites you, motivates you to get out of bed in the morning. The one way to beat failure is to get through it, and you can only get through it when you are passionate about what you are doing and its output. Without emotional investment and interest, it is difficult for an entrepreneur to face challenges.

9. OVERSPENDING OR UNDERSPENDING:

“Spend money to earn money” is one approach to starting a business. Investment and capital are necessary for the creation and upkeep of a company, however spending excess on things your business doesn’t require is a waste of resources which can affect your finances harshly in the future. On the other hand, underspending and compromising on things like marketing, better staff and product quality is not a wise move, especially when your business is at the stage of presenting itself to the world. Most founders tend to either under spend or overspend, neither of which are beneficial. Finding the balance and spending wisely is crucial.

10. THINKING IT CAN BE DONE ALONE:

“Alone we can do so little, together we can do so much”-Hellen Keller

Opening and running a business is not a one-man job, even if it means you are the boss or the owner. Being an entrepreneur is a huge burden in itself and passing on all the responsibility and stress upon the owner’s shoulder is a common mistake a lot of first-time founders make, which leads to haste decision making. Finding an efficient, productive, and compatible team you can work with plays a big role in the success of your company.

“The only real mistake is the one from which we learn nothing, for mistakes are only proof that we are trying.” – Henry Ford