When you decide to start a business from scratch, it is not enough to have a good idea, desire and enthusiasm, it is also necessary to have the knowledge to know how to develop any project, have a lot of common sense and analytical capacity, in addition to being constant and surrounded by a team of committed and professional people.

During the entrepreneurship process there are many mistakes, although mistakes are part of the learning “process”, there are some “frequent mistakes” that are usually made when starting a project of this type, below we will know the most common:

Do not share or speak with many people before starting the Project

It tends to think that if we talk to many people about our project they can “steal” the idea, however this is far from the reality there are already legal tools such as “confidentiality agreements” that will support us in the face of this type of incident, In addition to talking to several people, we will have a greater perspective on things and we will be able to “improve” the conception or bases of our project, in this case it is recommended to talk with people who have more experience than us in the business area in which we want to venture.

Not preparing to avoid future conflicts between partners

It is recommended to talk to partners and prepare to avoid future conflicts, especially when talking about dividends, salaries, dividing the company by the number of partners, etc. the ideal is to look for someone with enough experience on entrepreneurship, to advise us on this topic, and end up giving the right value to each partner. Another point to take into account is the position or position that each partner must occupy within the company (always thinking of what is best for the organization).

It is necessary to be clear about what will happen when the business does not work, what can happen if one of the partners has to leave the company, if the number of shares in the company will have to be changed, etc. In other words, we must talk about possible success, but also about what could be possible failure, circumstances or conflicts that may arise in the future.

Not having a business model

Choosing a good business model is essential for the sustainability of a project, this is generally one of the biggest mistakes that entrepreneurs make: believing that the main thing is to have a business plan, but what is really needed is a «model business »that engages all parties in one, and that allows us to generate good income in the future. It is good to keep in mind that we must first have a business model and then think of a business plan.

Not having partners that complement our skills

It is important to have partners that complement our skills, for example it is useless for a project to have 3 partners and that they are all from the same specialty (since this will make the business not strengthen and take away perspective from it) for example if our specialty is marketing or sales maybe we can find a partner with different skills (technical, accounting or financial skills), for example if we specialize in the technical part of a project, maybe we could have as a partner someone who has sales skills or public relations.

Money management

Business finances sometimes reflect, as are the personal finances of the entrepreneurs themselves. The main challenge of an entrepreneur and his new company is called cash flow (or cash flow), some entrepreneurs think about “paying a good salary” instead of thinking about developing the business or making more productive investments for the project and generate more cash flow. This in the long run, can make the company disappear in a short time by not reaching its break-even point. You have to learn to manage money, since this is the key to the future of any entrepreneur who wants to be successful. It is recommended that every entrepreneur (who starts a new project) consider that during the first 2 years he will not receive a salary (or that the income he will receive will be minimal) for the development of the company, business or project.

What do you think about this topic? Have you made any of these mistakes?

If you want more information, you can contact us or write your query below (comments section).

Image by Austin Distel via unsplash.com under creative commons license.

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