What are the mistakes that an entrepreneur might make?

This is not a new thing to tell that being an entrepreneur is a difficult job. Many start their own business and hope to make a name in the business world. We see that there are many entrepreneurs today than a decade back. They have found their success in what they have always wanted to do but let not this huge number of successful entrepreneurs fool you as there are many who have failed terribly to establish their business. Nobody can climb the ladder without some hard work and plans. Building a business of your own is like climbing a mountain, you need all the right gears, maps, plans, team, investment of time and money otherwise falling short of these will drop you from whatever little height you have climbed and leave you crippled.

To avoid being one of those entrepreneurs who dreamt, came, saw and conquered nothing you need to watch out for certain actions or deeds that could lead to the death of your business.

Here are some of those mistakes that an entrepreneur might make:

1. Not being sure of target audience

Be sure of who your customers are and who you can target using your product. Not knowing who will be interested in doing business with you can rob your business from you. When you start a business of car servicing it is obvious that people who own car are your potential customers but are your services for cars that are expensively built and need delicate care? This is where we go wrong as you cannot define everyone in one category in order to get customers. You will have to attract your customers based on their need and what they are seeking for. You cannot put up an ad about pens and then expect your customers who want pencil to come to your store this will only make you lose customers hence knowing your target audience will help you in attracting them as well because you will be aware of what they need and what they will be attracted to.

2. Not building a good network

You are never a smaller person when you go about making friends and asking for help for your business to be promoted or while trying to sell your business. If you do not increase your network and make your business known there is a less chance that you will be able to make your business known to more people as it is the easiest way to get more people to come approach you for your business. When you make right networks and keep increasing it that will give you a lot of leads which will help you get more sales. Network is net worth hence there should be no hesitation while trying to build your network.

3. Not stressing on sales

A business owner must always be focused on how much sales one is making and how much is the target for each month and each week. It is not a bed of roses when it comes to trying to reach the sale targets but that is the only way you can keep your business alive. Taking your sales lightly and going with the flow will make your business stagnant and you will soon lose your customers. Find all the ways to get more sales and means to get more leads and how to turn them into your customers. If you are not worried or tensed about getting more sales then think again, do you want to keep your business alive or not!

4. Didn”™t do right pricing

There”™s a fine line between over pricing and right pricing. Be careful you might have priced your services and products lesser than the right amount as it can lead to loss. In order to gain more buyers the business owners often do this at the start or at times they are not sure of how to calculate and take out the right price and treat themselves with profit. You should learn to be honest with your business as there is no use having more customers yet having a loss ultimately it will lead to your loss not the customer”™s or anyone else’s.

5. Do not focus on revenue but profit

It is not how much you are taking it is how much you are keeping. Know when to increase your business calculate the amount of expenses that you will be making and how much profit you will be getting once you increase your business. Your profit might increase as well but is it double the profit of your current margin or is it just because you are increasing the business and if your expenses are more than the previous profit margin that means you are only selling but not getting the right amount of profit.

Sumathi

I’m a tax expert with over 10 years of professional experience. I’ve gained practical insights on GST and other Taxes during my tenture as a Tax expert and GST Trainer in Reach Accountant.