Common Mistakes First-Time Entrepreneurs Make And How To Avoid Them

Anita Ginsburg

August 02, 2016

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Being an entrepreneur today is not easy. You need to overcome the competition while turning a profit in a largely oversaturated marketplace. It still can be done if you understand what you are getting into with a new startup. Here are some common mistakes first-time entrepreneurs make and ways to avoid them.

Not Delegating or Outsourcing Work

One major mistake is not delegating or outsourcing work that you cannot practically do yourself. It is often impossible to do everything in-house when starting a new company. You need to know when to pass off tasks to employees or hire a third-party company to handle things like fulfillment or logistics.

Ignoring the Brand

It is important to never ignore the brand of a new startup. The brand and your marketing will be the only things setting the startup apart from established companies. You need to take the time to develop a solid core brand with a unique message and look. Use your online and offline marketing to reinforce that brand whenever possible.

Not Getting the Right Technology

Do not make the mistake getting insufficient or improper technology for your startup. You need to look closely at what your new business really needs. Get the right tech equipment to help improve productivity, drive innovation and connect with customers. You will need to get quality items from things like computers and software to extension cords from Americord. Never settle for less since the wrong tech equipment could harm your new company significantly.

Failing To Research the Market

Do not rely on gut instincts when it comes to the market. Entrepreneurs should be researching the market extensively. You need facts about what people want, who is your target demographic and what competitors are doing. Detailed market research is the key to success for entrepreneurs.

Relying On Friends or Family

Avoid making the mistake of relying on friends or family members to fill key positions in the startup. You must have qualified people working at your startup. Hire people who have experience, training and knowledge instead of unqualified friends or relatives.

Not Separating Business and Personal Expenditures

A final mistake is not separating business and personal expenditures. Have business credit cards and accounts. Use them for business only. Do not get into the habit of charging business expenses to personal cards or accounts since that can cause a host of problems later with accounting.

You want to make as few mistakes as possible when starting a new business. Just a few small errors along the way could end up hurting the startup and derailing your business plans. These tips will help you to avoid common mistakes and succeed as an entrepreneur.