An entrepreneur is a person who has a business idea in mind and wants to take it forward in order to solve a problem and add value to their target audience (with the product or service offered), which will end up generating profits or benefits. Starting in the business world requires a clear understanding of where commercial efforts should be directed and how resources should be managed. In these cases, it is advisable to learn from people (who have achieved what we want) with more experience in the business item that and advise us and indicate which is the best way to go.
Starting a business is an activity that requires a lot of concentration and focus, since we will have to dedicate a good part of our resources (time and money). When we decide to undertake, we must bear in mind some errors that others have already made, in this article we will share some of these errors.
Premises to take into account when undertaking
Some premises that we must take into account before undertaking any business are: Everything has a cost and therefore everything will bring a benefit, this is that in life, everything, absolutely everything, has a cost, because we will always want to obtain some benefit.
All business is done with the purpose of obtaining profits. When we start a business we do it thinking about what the profits will be, because if the business is profitable it can develop, help more people / companies and stay on time. Another premise is that there will always be winners and losers, however today, with globalization underway, we want to talk only about win-win, that is, there are no losers, but both parties win, that would be ideal.
Not having clear objectives
It is important that before starting a business, we have clear what are the objectives that our company wants to achieve, and see if these really align with our personal objectives, because we must not rule out the fact that a venture is also a personal goal.
For this it is basic to see how we want to see ourselves in the very near future, how we want to see the business in a short time and what kind of benefits we hope to achieve. In such a way that the objectives, both of the business and the personal objectives must be connected, so that the expectations are reached satisfactorily.
Ignore the competition
Sometimes for the same impetus and enthusiasm, it usually happens, that we leave the competitor aside and we begin to believe that our product is the only one in the market, crass error, we should not act like that from the beginning, this would lead us astray , we must always bear in mind globalization: our idea or product may not be in our locality or even in our country, but it could be in another part of the world, or at least one very similar (and perhaps even better our offer).
This would be very serious in the first stage of our company, it would be a bad start and could lead us to have to make changes unexpectedly when we meet that competitor that we do not take into account. That’s why we always have to think about how to differentiate ourselves from the competition and thus we can ensure the success of our business.
Not having a competent work team
That’s to say, as far as possible, we must form a multidisciplinary work team that helps us from the beginning, each one with their experience and knowledge in their respective area, this is the key to directing the business on the path of success, because we can’t all do everything and it is always good to have experts.
It’s sometimes a bit complicated to create a good team, in which we all agree on a single objective, that is why it is essential to get people interested and aligned with our idea and with our objectives, so that they help us to assume the challenge and move towards what we have proposed.
Start without having a previous business plan
There is no need to think that faults will be corrected along the way as they appear, no, that’s not the right thing to do, we must first have a business plan that allows us a sustained and upward development, and viable goals to short term. If we decide to start a company, we must set goals in the short and medium term and scales of measurement that allow us to know the direction we are taking.
Start the business with an inadequate financing system
Sometimes getting into debt to start a business is what many people do, thinking that they will do well and that in a short time they will be paying off debts. The best thing we can do is to think about a financing plan before acquiring debts or requesting a loan.
We must avoid as much as possible using credit cards at the beginning of the business, they tend to have very high interests, so they are a bad decision that undermine our profitability. We can look for other alternatives, such as friends, family or investors that may show interest and help us by providing the necessary capital to move forward.
What do you think about this topic? Have you made any of these mistakes?
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