05 Mistakes of First-time Entrepreneur

Now that you know what it’s like to be an entrepreneur, learn about the 5 most common mistakes among people who start to undertake!

05 Mistakes of First-time Entrepreneur

1. Not knowing the field of activity

There are many reasons that lead a person to decide to become an entrepreneur. In certain cases, the purpose is to take advantage of a market opportunity to enter a new area.

But you have to be very careful before making this decision, as undertaking in a totally unknown field can lead to mistakes. It is interesting to already understand the routines, strengths, and weaknesses of the segment and the technical aspects of the function before opening the business.

Although it is quite positive to have experience in the area, having already worked as an employee is not a requirement. You can learn from industry studies. However, it is essential to dedicate yourself to mastering the area, to avoid mistakes that harm the business.

Affinity with the sector is another important aspect. Undertaking with a focus only on the financial return may be ineffective. After all, the process will require intense involvement — and that will only be possible if there is pleasure and motivation in the project.

2. Entrepreneur expect quick returns

The time it takes to start making a profit that you undertake is quite relative. However, the trend is that it takes a few months – or even years – to recover the initial amount invested and start to be profitable.

Thus, taking a long time to see the results appear in the finances is common and does not mean that the business is not working. To know if the enterprise is in fact profitable, it is necessary to follow the accounting and observe its growth.

In this scenario, expecting to have quick cash is a common mistake and can lead to frustration. Keep in mind that in the initial phase, the focus should be on building a positive image in the market, gaining a loyal following, and reinforcing your authority.

3. Not having a business plan

The business plan is essential both for companies that are starting their activities and for those that are in the expansion phase. It is an instrument that allows you to gather the main information about the market, your product or service, and the actions to be taken by management.

In this sense, the business plan allows the entrepreneur to understand the main factors of his company. With this, he can make more conscious and analysis-based decisions. Therefore, any idea and goal must have this instrument as a foundation.

The risk of not having a plan is not knowing the market and your company’s positioning in it. In this way, deliberations are based only on opinions, not studies, and the chances of failure are significantly higher.

Consider that writing a business plan does not eliminate risks, but it reduces the possibility of having problems due to wrong choices caused by a lack of analysis and direction. In addition, you may have better conditions to dodge challenges.

4. Ignore the customer

During the implementation of a new business, many ideas arise. And the entrepreneur has the opportunity to put his personality into the product or service he offers. This is great, as it brings the chance to find an audience that identifies with and invests in the idea.

However, it is always important to keep in mind that any enterprise must focus on customers and be guided by the profile of the ideal consumer. First, you need to know essential information, such as:

• age group;
• Professional Profile;
• gender — if relevant to your product/service;
• type of engagement;
• value expectations;
• difficulties;
• objections.

From these references, ways of communicating, growth strategies, and even characteristics related to the product and the physical space of the business can be designed.

Another important element in this relationship with the customer is served. In the beginning of the enterprise, the care with the form of contact with the customer is crucial. It is at this moment that he will have his first impressions of the company.

Therefore, accepting complaints and listening carefully to the feedback you receive are ways to improve your business and provide greater public satisfaction.

Outlining an entire positioning strategy in the market without considering your client is a common mistake of those who undertake for the first time. So don’t forget that success depends on the audience.

5. Not knowing the purposes of the enterprise

One of the keys to being successful in the business world is understanding what contribution your project can make to society. For this, it is not enough to have a great idea, it is necessary to offer a solution to a people’s problem.

Knowing the purpose of the company is important to know what differentials it can offer to customers, in addition to defining the internal culture.

This is a way to build a relationship with the public, who will perceive the affinity with the brand. For example, if it is a cause of female entrepreneurship, it can awaken the identification of audiences that defend the theme and will become loyal to the company.

To build that relationship, communicating your purpose is essential. So, before starting a business, it is important to know the reasons for doing so and how it can help the customer in their pain.

That doesn’t mean you have to have a social cause. Any product or service comes to solve a pain, right? So it’s important to offer value so that the business has a positive impact on the customers’ lives.