|| For Freelancers & Entrepreneurs |
Entrepreneurs are good at creating value but it doesn't follow that all entrepreneurs have redoubtable business sense. They are not exempt from committing serious mistakes and some entrepreneurs fail at business.
If you are setting up or are currently managing your own business, knowing the common pitfalls that cause even formidable innovators to fail is a priceless business resource. Here are some of the pitfalls any entrepreneur should avoid at all costs:
1. Embarking on a business full blast with limited capitalization and unclear sources of funding. Taking calculated risks is an integral part of any business operation and is a known motive force that fueled many remarkable business successes in the past. However, taking unreasonable risks--such as plunging head-on into a highly competitive industry without clear revenue or funding streams is a formula for disaster. Leaving too much to chance is never a prudent business tactic.
2. Joining the battle as a one-man army. Nobody said to do your business alone even if you somehow can. There are people who can help you improve your business and getting their help will allow you to learn as well as allocate more time to grow your business.
3. Establishing unreasonable expectations. Having lofty ambitions is good in the long run since when coupled with action, well-motivated ambitions are the key inputs to change. However, establishing unreasonably high targets often result to failure and resentment. There's nothing wrong with wishing your business to perform outstandingly and be a major player in your sector within a few months. Establishing that goal with inadequate or unreliable resources is simply stupid.
4. Hinging happiness on the success of the business venture. Happiness should be a predominant state of mind instead of being an event-driven emotion. Otherwise, there's bound to be a lot of unhappiness sprouting in your office that is sure to erode your prospects for success. The key is to develop a cheerful personality that's independent of the fortunes of your business.
There are many other pitfalls that even excellent entrepreneurs commonly commit. However, the foregoing are the most common and steering clear of them will help you hurdle the major challenges small businesses encounter in their first year of operation.
