The 12 Most Common Mistakes New Entrepreneurs Make & how to avoid them

Title:The 12 Most Common Mistakes New EntrepreneursMake & how to avoid themWord Count:1523Summary:A large number of people who start their ownbusiness do not realize how much work and timewill be involved. They fail to carry out anyprimary research and as a result become quicklyoverwhelmed.

Perhaps the first question to ask yourself thenis whether you are in fact ready to start your ownbusiness. Do you have an entrepreneurial mindset?Are you committed to spend all the time you needto succeed? And are you ready to take massiveaction?Keywords:entrepreneur, small business owner, start abusiness, business plan, marketing, networking,financing a business,Article Body:A large number of people who start their ownbusiness do not realize how much work and timewill be involved. They fail to carry out anyprimary research and as a result become quicklyoverwhelmed.Perhaps the first question to ask yourself then

is whether you are in fact ready to start your ownbusiness. Do you have an entrepreneurial mindset?Are you committed to spend all the time you needto succeed? And are you ready to take massiveaction?At first, you will have to wear many differenthats; you will be the CEO, the general manager,the accountant, the salesperson, the computertechnician, the secretary, the receptionist. Youmust therefore prepare yourself because therewill be days when you are disappointed, depressed,or frustrated. You have to realize that successwill not happen overnight. And it may take a yearor two before you achieve your expected results.To avoid these disappointments, here are 慣 he 12Most Common Mistakes New Entrepreneurs Make & Howto Avoid Them?Mistake # 1 - Failure to spend enough timeresearching the business idea to see if it's

viableNumbers of new entrepreneurs have often failedbecause they were not truly interested in thebusiness; they were more interested in makingmoney. It is important to start something that youreally like, because you will be spending a lotof time on it.Your assignment ?Spend all the time you needworking on your business plan, which shouldinclude: your mission statement, your businessstrategy, research on your target market(demographics), industry analysis (size,economics, trends, success factors, challenges,etc.), your marketing plan, your financialprojections and sales.Mistake # 2 - Failure to determine whether thebusiness actually adds valueThe most sustainable businesses, those thatwithstand the test of time, provide value byperforming a service that people need.Your assignment ?Make sure your products or

services provide value and benefit to yourclients. Be ready to solve any business problemsthat your clients may have.Mistake # 3 - Failure to gain a complete and totalunderstanding of the businessEvery business has drivers; hot buttons and keylevers. What drivers exist in your business?Many business leaders, executives and managementconsultants would say that success largelydepends on attention to detail.Your assignment ?Understand all the aspects ofyour business, and of particular importance, knowhow to present them in an easy and simple manner.Mistake # 4 - Failure to describe the business inonly one or two sentencesNo doubt you 抳 e experienced the entrepreneurwhose business is so technical or complex that hecannot explain the concept in plain English. Or,it takes 20 minutes to convey the purpose of thebusiness. What value or benefits does your

business offer?Your assignment ?Have an efficient 15 to 60 secondelevator pitch that introduces you, yourbusiness?mission, focuses on the benefits youprovide and makes you and your businessmemorable.Mistake # 5 - Failure to conduct the primaryresearchThere are many great ideas you can latch on to,but the key in business is to make sure the idea梩 he central theme or mission of your businessventure 梒 an attract customers and generate salesand profits. A great idea in and of itself is notenough to start a business.Your assignment ?Take the time to gain experience,study the business, understand what makes thebusiness work (how to serve the customers andgenerate profits) and what leads to losses.Mistake # 6 - Failure to contact professionals whocan help you get started

Numbers of new entrepreneurs ask their friendsand family for advice when starting a new business.The problem is that they often ask people who havenever started a business; so in reality, thesepeople are not in a position to offer soundadvice.Your assignment ?Get a mentor or two. Surroundyourself with experts who possess skills andexpertise that you lack. Team up withprofessionals who can complement your strengthsand cover for your weaknesses.Mistake # 7 ?Failure by underestimating financialrequirementsDo you know how much capital you need to start yourbusiness? Do you know the market, did youcalculate your cost, did you project your sales,do you know the number of clients you need? Do youknow how long it will take before you get yourfirst benefits or before you will run out ofmoney?Your assignment ?Invest the time to work on ALL

aspects, especially the major ones, of yourbusiness before you start.Mistake # 8 - Failure to make marketing a priorityMany new entrepreneurs start their businesswithout determining their target, niche anddemography first and as a result have failed toattract any clients. Marketing should be one ofyour top priorities. Devising a marketing planwill help you determine how to promote yourproducts or services and create a system that willgenerate more clients for your business.Your assignment ?Dedicate a good portion of yourtime and energy to working on and implementingyour marketing plan. Set up a meeting withyourself once a week to work on your marketingplan and whatever happens never cancel thismeeting; it is essential for your business.Mistake # 9 ?Failure by under-budgeting themarketing costsToday the world is overcrowded with businesses

and probably a number of those in your marketperform essentially the same functions as you do.This means that you have to differentiateyourself from them by making your business standout. Publicity is essential to your livelihood;otherwise you will not attract any customers.Your assignment ?Make sure you have a strategythat puts the word out there. Provide adequatepublicity, business cards and marketingmaterials that project a professional image. Don抰 try to save money on these; they are reflectingyour business. A cheap business card or flyer willnot make a professional impact.Mistake # 10 - Failure to focus on the businessMany new entrepreneurs are energetic andenthusiastic people (which is essential tosuccess), but they can also be overly optimisticand pursue too many targets and directions at once.This typically results in mediocre results.Define your business?mission as succinctly andnarrowly as possible. When you move in too many

directions at once, especially in the early daysof your business, you are likely to fail toexecute anything correctly; so you end up working搊 n the business?instead of 搃 n the business.?Inother words, you will spend all your timeoperating each task on your own. You won 抰 havethe time to sit back, and decide on the best wayto develop your own marketing plan, create newproducts, or improve your services.Your assignment ?Know you goals. Put them inwriting. Make sure they are realistic, specificand measurable and that you set yourself adeadline to achieve them.Mistake # 11 - Failure by over-marketingOnce you have developed your product or serviceand have perfected your offering, you may thinkthat your offering is the best in your marketplace.But unfortunately, to be efficient you can 抰sell to everyone. You need to select a specifictarget market and stick to it. By doing this youwill have a more efficient message and will more

likely achieve success much sooner.Your assignment ?Carefully determine your niche,your demography, your ideal clients, where theygo, what they read, what their hobbies are, etc.Once you have a full understanding of your client抯 profile you will then have a fullunderstanding of how and where to find more ofthem.Mistake # 12 - Failure to follow-up with clientsMany new entrepreneurs are often so desperate toconstantly find new clients that they neglect theclients they already have and in fact end uplosing business. Statistics show that it takesseven more interactions to secure a new clientthan to sell more to a repeated client. So developand maintain a useful and organized follow-upsystem to offer new services to your clients anddon 抰 let them slip away.Your assignment ?Constantly and consistentlycommunicate with your current clients.Start a newsletter, offer special sales, create

new products to upsell, join affiliate programsif you don 抰 have your own products. People whohave already bought from you will appreciate itwhen you recommend other products. Statisticsshow that up to one out of three clients will takeadvantage of this new offer. It is essential tobuild a very, very special relationship with yourclients. They are your best audience.If you have a business idea, but are unsure howto get started, or already own a business, buthave not yet achieved the results or success youwere hoping for, check out my book: \"Start YourDream Business Today! The Proven 11 Steps to Startand Grow Your Own Business\", a simple yetinformative and easy to follow step-by-step guideto everything a new entrepreneur should know whenstarting a business.Get it today by going towww.StartYourDreamBusinessToday.com. You 抣 lalso get lot of other ideas and resources to helpYOU Start Your Dream Business and I will save you

time and lot of money, as I did for my clients.?2006 Biba F. P 閐 ron