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5 Start-Up Mistakes Rookie Entrepreneurs Make

Meghan Belnap

December 12, 2016

Even with a great product or service, it doesn't take much for a new business to go under. According to a Forbes article, 90% of startups tend to fail. Because the odds of success are not in your favor, you must begin to make changes to your tactics today if you want to be part of the ten percent that makes it. 

Choosing the Wrong Partner

If you need a partner to help with your new business, then take some time to ensure you find the perfect fit. While it might sound appealing to bring a family member or close friend into the company, that could be a mistake in the long run. Any partner you are interested in should be bringing some skills to the table as well as seed money. 

Avoiding Education and Training

No matter how much experience you have running a business, you should always be looking for ways to improve yourself. Entrepreneurs are busy growing and maintaining their startups, but they should always be expounding upon their education. Consider taking classes or getting certified in areas that will help you grow in business management. Options like pursuing an online master’s in data analytics or similar areas make it possible to expand your skills without spending extra time in a classroom. 

Failing to Find the Right Employees

Smaller companies do not have the luxury of surviving a high employee turnover rate. Instead of using only entry-level employees, you should try to find professionals with multiple skills who can continue to grow with your company. Much like your partner, they should be invested in the success of your company.

Not Firing Fast Enough

No matter how much time you spend finding and nourishing the perfect employees, there will most likely come a point when you need to fire someone. As soon as you realize their actions are harming your company, you should let them go as quickly as possible to prevent lingering damage. You might also want to consult with an HR specialist to ensure that the firing will not come back to haunt your company. 

Trying to Please Everyone

Business owners must accept the fact that they are not going to please everyone, and they will most likely damage a few relationships along the way. As long as you remain honest and respectful, then you can rest assured that you are taking the high road. When changes need to be made because of complaints, you should approach it as neutrally and stoically as possible. 

Every new entrepreneur is going to face a wide variety of risks during the first few years of opening their business. Taking some time to learn about common mistakes will allow you to avoid those issues as your company continues to thrive. Even if one idea fails, continue to put your best ideas to the table. You never know when you could catch your big break!

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