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When you’re starting a small business, it’s easy to make one or more of some common startup mistakes.
However, in Europe, the number of investments in startups almost doubled between 2015 and 2017. So if you’ve ever dreamed of starting your own business, now is the time.
One thing you can do is avoid the most common startup mistake of all, the mistake of talking yourself out of starting before you even begin. To avoid this startup mistake, it is important to keep your negative thoughts at bay. One of the best ways to do this is to conduct thorough research before you begin. For instance, do some deep research about your business idea with best custom essays writing service. Also, talk with other entrepreneurs and study the market well before you begin.
In this post, we discuss some other common startup mistakes. We also give some examples of famous entrepreneurs whose startup mistakes were mere bumps in the road for their now-successful companies.
Startup Mistakes Made by Startup Stars
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Everyone makes mistakes, and here’s proof. Some famous CEO’s who made startup mistakes at the beginning of their careers are:
- The famous visionary Bill Gates of Microsoft made the mistake of not expanding his ideas about search engines. Microsoft used MSN Search, which wasn’t accurate or powerful. Google stepped into the gap and became the most widely used search engine to date.
- As the CEO of Apple, it was Tim Cook’s responsibility to ensure that Apple Maps was really ready to be launched. As it turned out, Apple Maps lost ground with users because its early versions gave faulty locations.
- Netflix’s Reed Hastings announced a separate DVD section in 2011 named Qwikster. Customers didn’t find it useful and the company had to shut it down.
You can also learn from other entrepreneurs by following them on social media.
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Startup Mistakes the Rest of Us Can Avoid
We can’t all recover so brilliantly from our mistakes as did Gates, Cook, and Hastings. Therefore, it’s better if we can avoid most startup mistakes when we can.
To that end, here’s our list of some common startup mistakes to watch out for:
Mistake #1: Putting All Your Savings into Your Business
It’s true that you have to give up something to gain something. However, think logically if putting all your savings into your new business is worth the risk. It is possible that your business might not work out. If that were to happen, you would lose everything that you had.
Even if your business turns out to be successful, it will likely be a few years before you see a profit. Therefore, it’s best to start small. For instance, it’s pretty inexpensive these days to start an online business. You might also choose to collaborate with another entrepreneur to share expenses and responsibilities.
Mistake #2: Being in a Hurry
It’s a good idea to start a business early in life so that you can enjoy the profits later. However, it is also important to research properly about all possibilities. This can take some time. Education and research can lead you to solutions before problems even occur.
Therefore, conduct careful and complete research about your:
- Business functions
- Profit and loss
Mistake #3: Listening to the Wrong Advice
Going it alone in the business world is risky. But having too many people on your advisory board can also be problematic. One of the chief reasons to partner with another person is that she or he will offer new ideas. However, sometimes listening to the wrong advice can delay the decision-making processes.
Ask several entrepreneurs for their advice, but do your own thinking. Don’t let conflicting suggestions leave you confused.
Mistake #4: Focusing More on Production Than Sales
Some entrepreneurs say that production is the first thing you have to focus on. Greater production, they argue, will automatically increase sales.
But the experts will tell you that sales are the holy grail.
When you focus on sales you’ll be bringing in revenue. Production will naturally rise as a result. Bringing in more sales will make your startup more competitive. As a result, your business will flourish.
Mistake #5: Spending Too Much on Advertising
Advertising is an important aspect of any business. However, it is not the only area which requires funding. You must take into account the small budget most startups begin with. Therefore, don’t make the startup mistake of spending a huge chunk of your funds on advertising when you first start out. There are inexpensive ways to market your business in the beginning. Expensive advertising can wait until your startup has a solid customer base.
The startup mistakes we’ve listed here are not intended to stop you from dreaming big and giving shape to those dreams. You’ll make mistakes. Everyone does. But learn from the examples of others. Try not to repeat the common startup mistakes that many others before you have made.
And if you do make a startup mistake, get right back up. Dust yourself off and start all over again.