What does it take for a business to flourish and make it to the top of the Forbes list? Well, many will say it’s the money-making capacity or the loyal customer ground that leads a business towards the path of success. But, is it so? Is the only metric of success for any business is its profitability and customer loyalty? Well, hate to break it to you, but it isn’t!
When one skims through the reasons behind an organization’s prosperity, it’s only possible for the balance sheet of the firm to grab their attention. But in actuality, what really makes a business go all the way from rags to riches is the entrepreneur’s vision! Statistics have it – 83.1% of US business owners started their companies! But then, around 22.5% of businesses fail within the first year!
Well, it certainly takes a lot to be a capitalist, and let’s just face it – even the most futurist entrepreneur sometimes ends up making dreadful business blunders. So, if you are a budding entrepreneur too, here’s a list of 5 business blunders you must avoid.
But first, let’s see what are the skills that an entrepreneur must possess?
An entrepreneur is a leader, rightly said. And a leader isn’t someone who bosses around – it’s someone who leads by example! That is why the most important skill that an entrepreneur must possess is the skill of headship. The tough part? Nothing can teach you this. It is something that you have to take birth with.
Again, a very fitting example of the saying ‘Entrepreneurs are born, not made’. Just like leadership, the art of teamwork is also something that an entrepreneur must-have. Without being affluent in this skill, the dream of leading a company will never turn into a reality.
By far the most important ability an entrepreneur must have! Not many people realize that effective communication is more of an art of listening, than speaking. But the ones who do, end up making it big in the business arena.
Business is all things money, and the ones who realize it are the ones who make the most of this resource. Financial skills include having a sharp knowledge of money management and risk assessment. In a nutshell, it means treating capital as your biggest asset!
Critical thinking skills
They say business is as uncertain as to the weather. And to face these uncertainties, a fluent entrepreneur must have critical thinking abilities. Problem-solving, risk management, and decision making – without these skills, an entrepreneur is no good.
Now, let’s see what are the 5 business blunders that an entrepreneur must keep away from making:
Facts have it – most businesses fall short because the entrepreneurs fail to conduct proper research. But, what exactly do they need to study? Well, there are a plethora of aspects – from learning about the current market trends to recognizing the needs of the people of the vicinity – an entrepreneur mostly is just one wrong assessment away from ruining his entire business model.
And it is well-known that a business whose foundation is weak, never thrives in the long run. So, first things first, if you will be making your entrepreneurial debut any time sooner, make sure you conduct thorough research beforehand.
Hiring incompetent people
Well, another big shot reason why companies fall on their faces! Like we said earlier, an entrepreneur has to be good at teamwork because no matter how skilled he is, he cannot carry out all the business tasks by himself aloof.
And you do not realize the power of a good team unless you find out how companies like Google go all the way from operating in a garage to becoming one of the world’s finest IT companies.
So, placing the right people at the right job post is extremely crucial. You cannot expect an accountant to work on SEO for you. If you do so, no matter even if you have the best and the most skilled personnel, they will prove highly incompetent and more of a liability than an asset to the company.
Mismanaging the finances
One of the biggest business blunders that exist, especially in the case of young entrepreneurs! There was a time when starting a business was a hefty task because pooling funds was not at all easy. But today, with the development in the ideas like crowd-funding and obviously, the contemporary method of raising funds through floating shares has made fund-raising a joke.
But, the real trouble lies in the problem of choice. Nowadays, entrepreneurs fail to ascertain which sector needs to be funded first and where the money should be invested. Most times, they end up mismanaging the funds, which obviously, creates a financial crisis in the organization.
Ignoring online marketing
If you are looking forward to becoming an entrepreneur and you think you can ace the business without proper online marketing tactics, sorry, but maybe you miss the knack.
In the current scenario, if the entrepreneurs fail to give proper attention to their website and SEO content, there are scarce chances of them surviving in the long run.
Not only this, not analyzing web changes and social media tracking can also prove to be lethal. So, the best they can do is take the help of tools like Stillio, so that this important aspect doesn’t suffer a lack of attention.
Missing out on discipline
Lastly, the most common thing that we get to see in entrepreneurs is the lack of commitment and disciple, once they feel like they have achieved the knowledge about what it takes to run a business. However, this is a wrong approach.
When it comes to business, no amount of knowledge is ever enough. So, make sure you never miss out on maintaining proper discipline. Continue to be as rigorously invested in the business always, as you were when you merely had an idea of the same in your head.
Over to you…
Running a business is not a child’s play and the entrepreneurs know this better. Here, we listed 5 business blunders that an entrepreneur must avoid. This guide is sure to help you.