iCrowdNewswire Nov 19, 2020 10:10 AM ET
Entrepreneurs of today are nothing like they were decades ago. They are less scared of the future, they take more chances, and are looking to start a business much earlier than their parents or grandparents before them.
While the fact that young entrepreneurs are more eager to jump into the business world can be a good thing, it can also leave them open to more rookie mistakes. Most of these mistakes come from a lack of experience in planning a business, but that’s not to say less experienced entrepreneurs can’t be successful.
Failure is an important part of your journey as an entrepreneur, and you will probably make a lot of mistakes on the way. However, some of these mistakes can be avoided if you do your homework and a little bit of planning ahead.
Here are some of the rookie mistakes young entrepreneurs make at the beginning of their careers, as well as how to avoid them, in order to set your business up for success.
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Jumping in without studying the market
Ignoring the market is one of the biggest mistakes young entrepreneurs make, and that’s because they are too focused on their concepts, rather than how to bring these concepts to market. Having a good idea is absolutely necessary for the success of your business, but making sure it has a place on the market is just as important.
Take at least half a year to study the market, talk to potential customers, understand their needs, and find out how your product can help solve them. This will help direct your resources towards things that allow you to perfect your idea. Be open to change and accept you are going to have to change some details about your product in order to make it more suited for customers.
Taking advice from the wrong people
When you are a young entrepreneur, looking to make it big in the industry, you are probably going to turn to those around you for advice. People have a lot of time on their hands and won’t hesitate to give their opinions on different matters, sometimes even when no one asked for it, so it is important to consider where this advice is coming from.
If your father and uncle jump in to give their opinion on your new tech startup, but they barely understand what the company actually does, then you may want to think twice before taking their advice.
Surround yourself with people that can provide valuable insight and only listen to those who know what they are talking about. When you receive advice, consider where it comes from and how relevant is that for the industry you are playing in.
Overlooking constructive criticism
Feedback is very important at the beginning of your venture, as it can help you perfect your product, understand what the market wants, and see things from a different perspective. Of course, we already established it is important where this feedback is coming from, but when an important person, such as a potential customer or investor, is telling you something about the product, you should at least listen to what they have to say.
Criticism is difficult to take in, sometimes even when it’s positive, but if you want to grow, you are going to have to learn how to accept the opinions of others, especially when these people are important for your business. Take feedback, read it, understand it, and see if it has valuable information that can help you improve your business.
Biting more than you can chew
While it is true that if you want to survive in a competitive market, you need to act fast and stay ahead of your competitors, you also need to know when to hit pause and let things sink in before moving on to the next step. Growing too much too quick a reason many entrepreneurs fail to see their company turn to success, so take things one step at a time and enjoy every accomplishment.
The same mistake often happens when young entrepreneurs want to secure funding. Don’t take on more money than you know you can pay back, because even if you believe in your dream, life is unpredictable, and there is no way to know for sure your business is going to be a success.
For example, the need to secure as much funding as you can may convince you it’s ok to look for multiple investors, even if that means giving away some of the control you have over your company. You may want to look for other methods of funding, even if they give you a little less capital, at least until you get a bit of traction. If you are afraid you won’t be getting a loan because of your bad credit, there are some pretty good bad credit loans Canada has to offer, so take a look at that as well.
Not hiring the right people
The idea of a small, young team putting together a million-dollar business is very enchanting for beginner entrepreneurs, but if you want to succeed, hiring young, inexperienced people won’t suffice. You need a team of professionals, who know how to do their job the right way, and have experience in the industry.
When scouting for talent, don’t look at the size of the resume or the names of the companies they worked for before. Instead, identify the needs of your company and choose people who are most likely to fulfill them, just as customers do with the products they buy.
Putting too much pressure on yourself
If you want to be a successful entrepreneur, you need the mental strength for it. This is why you need to take good care of yourself and admit when it’s time to take a pause. Sleep at least 7 hours at night, eat well, try to set time aside for your other passions and hobbies, and don’t hesitate to ask for help when you feel things may be too difficult to handle alone.
No one has a magic recipe for success, but being constantly tired, irritated, and stressed surely don’t make the ingredient list.