I do not know any entrepreneur who has not committed any error. Therefore, it is good to know what the most common mistakes to detect how we can improve. Let try to avoid those common entrepreneurship mistake everyone did.
A college student wrote me an email asking me my opinion about the mistakes Chilean entrepreneurs. I appreciate your statement, because it allows addressing an issue that is certainly poorly documented and, therefore, I can also share my opinions.
Mistakes are part of the entrepreneurial process, because to err is only human condition. I do not know any entrepreneur who has not committed any error. However, one of the skills that successful entrepreneurs is precisely manage bugs trying to make the least possible.
With this preamble I will suggest a list of the most common mistakes entrepreneurs makes. I will discuss the 10 errors that I consider universal, that is, those who commit entrepreneurs almost everywhere.
Universal mistakes without order of importance:
Pro Tip: One major mistake young entrepreneurs make is that they are not willing to admit their faults.
- Founder fever and loss of objectivity entrepreneurs tend to fall in love with their projects and this is positive. But not having “a ground wire” can be very harmful. I always advise to have a “devil’s advocate” to help “get off the cloud ….”
- Choosing the wrong companions: I had already discussed in a previous guide, having a good team is key. Your best friend, your godfather and soul brother are just that, your friend, your godfather your brother but certainly not the best people to do a project.
- Lack of market orientation or target audience: more innovative than the product or service someone has to be willing to pay for it. The more you know those people willing, much better.
- Lack of competitive strategy: we must have a focus, universality we let the Coca-Cola (and even they have differential strategies).
- Despising competition: I’ve heard many times “for now there is no competition.” Then Cencosud and Wallmart enter the business…. (both are biggest company)
- Not enter the right time: not everything innovator has the “window of opportunity” always open, if not see what happened with projects such as Apple Newton, electric cars GM to late 80s, etc.
- Lack of business: if you do not know 100% what is not getting better.
- Not knowing the cost structure: It is always more expensive than it appears to be, you always have to sell cheaper than you had thought …
- Start with inadequate resources: Ok, it is not always money, sometimes are people, contacts and even time.
- The “bad stone”: Wanting to have all built and fast is not always good. If you want to start your business with an office in the Torre Titanium I think it’s not a good idea. -Best A rule always rent than buy, borrow better than renting.
In another article we will discuss 10 Tips For Young Entrepreneurs To Avoid Premature failure.
Needless to say that you need to prepare your entrepreneurship life from the beginning you think you can or will do something.