BY BANYO TEMITAYO
Mistakes are made in every aspect of life to make us better. But the positive side is to be able to learn from them, and emerge stronger. In business, some mistakes could make your company stronger, owing to a review of strategy, but some may actually make the business go under.
Twenty per cent of businesses fail in their first year, and up to 40 per cent may be no more in five years, according to experts. Learning to avoid common mistakes from the beginning may help place your organisation among the survivors.
As an entrepreneur, here are some mistakes you must always avoid:
Doing everything yourself
In a bid to achieve the best in terms of quality under your business signature, you may try to do everything yourself, instead of delegating key duties to other people. This way, less is achieved, and it affects overall indices.
Delving into business without knowing the basics
It is not enough to have enough capital to set up a business; you must learn the rudiments of the particular business you want to start. You need to spend enough time on studying the field, if it is not your original field, or gaining more knowledge, if it is your terrain. This way, you get to go on, in the short term, even if employees or consultants fail, and your business can get some lifeline in time of crisis.
“You need to spend enough time on studying the field, if it is not your original field, or gaining more knowledge, if it is your terrain. This way, you get to go on, in the short term, even if employees or consultants fail
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Not spelling out clear terms of agreement with partners
When you are about to start a business, and you need resources, particularly capital, the desperation, most times, allow you to forget to go through deal papers thoroughly. This, often times, makes an entrepreneur lose his shares in a company he worked hard to build, especially when things become rosy. On the other hand, exit clause should be properly scrutinised, so that partners do not throw you into troubled waters by abruptly calling for funds when the company is just learning to walk. Pay attention to your deal papers from the beginning and be sure they work, and that you are not short-changed. You must not also trust a partner blindly. There must be full transparency.
Allowing pessimists turn your passion to regret
It is not unusual for people who had failed in your line of business to want to talk you out at an early stage, or when things appear rough. Remember, passion drives success. This means you would be doing yourself great disservice by listening to pessimism. Turn the challenges they spell out into your winning strategy. Determination, most often, helps to conquer very tough challenges. Instead of giving in to a temptation to quit, approach those who have survived against all odds.
Letting your pride ruin your chances
There is no shame in your business not performing up to expectation. So, there is no shame associated with you asking for help from those who can offer it. When you think you are getting into troubled waters, call a friend, a senior colleague, or an expert, who you think can help. You never can tell how much relief you get by doing so. Asking cannot dent your image; not asking may cause more harm.
These are some basic mistakes we must learn to avoid as entrepreneurs. There are, however, more business mistakes that are mainly professional, which will be tackled at more sophisticated levels. But once you start out, having the basic don’ts in mind, a solid foundation would have been laid for the success of your Small and Medium Entreprise.
