Young Professionals Association

Common Entrepreneurship Mistakes

Deciding to launch a company has been a “lightbulb” moment for many entrepreneurs when the idea of launching a new product or service strikes them. Most entrepreneurs are so delighted by the idea that they become over confident about it thinking that its merits will be self evident to the potential customers and that the innovation is so superior that it will make sales itself. This is a huge mistake which proves damaging for their ventures.

Here are some common entrepreneurial mistakes identified by veteran entrepreneurs who have carved a niche for themselves in their respective fields:

1. Starting very early

Most entrepreneurs fully develop their products before getting a knack of the customers’ inclination towards them. It is recommended that entrepreneurs get in front of their prospects right from day one. A five minutes chat with a customer will reveal more about the product than hours of market research. It is important that you do not build anything before you sell it. People must be really interested in your idea before you start investing too much energy on it.

2. Failing to listen

A lot of entrepreneurs get engaged in selling the idea by convincing the prospects about it and do not remain concerned about finding what prospects think about the idea. Some respond negatively to criticism due to a bloated ego and passion. It is always wise to listen to feedback from customers and reshape your idea to custom fit their needs. As all the Des Moines digital marketing firms will tell you, good entrepreneurship demands validating your idea again and again by listening to the customers.

3. Offering discounts

When inexperienced entrepreneurs come under pressure to make sales, a number of them offer price discounts to be able to close initial deals. This often results in establishing unstable price precedents with the customers. The worst part is that when the news of discount spreads among the customers, the company loses its long term pricing power. It is recommended that you go for alternative sweeteners to strike deals for example free shipping or discount on purchases before a certain date.

4. Selling to family and friends

It has been usually seen that startups make early sales to family and friends. It is more so with businesses such as clothing, restaurant and wealth management. This translates into your inability to know more about your products or service. Many relatives and friends may be buying from you out of love, obligation or a sense of pity instead of product quality and their feedback and suggestions may not be honest. Such sales create a false sense of validation resulting in ignorance about the strengths and weaknesses of the product.

There are no two ways about the fact that salesmanship is the central attribute to good entrepreneurship which many entrepreneurs fail to recognize at their own peril. The kind of objections from prospects that an established company gets are very different from the ones that a startup gets. When amateur entrepreneurs get around making their initial sales, they often make the above mentioned mistakes resulting in most ventures not seeing the light of the day.

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