3 Big Mistakes Made By Entrepreneurs
Victor Green, a successful entrepreneur who has founded several successful businesses, names some mistakes made by entrepreneurs that cause the failure of their businesses. In an Inc.com article, he says one of the biggest mistakes of business owners is their failure to test their product or service in the actual marketplace. Green says, “And once you’ve researched it, get a much wider look at how the industry will progress. “ Another mistake is carrying on no matter what. “Being willing to pull the plug on your own creation is the test of a true entrepreneur. I always congratulate people who tell me, ‘I’m going to pull the plug–it’s not working.’ “, he adds.
No one said starting a new business would be easy–in fact it’s pretty tough. But many entrepreneurs make it much harder than it needs to be with dumb mistakes that can quickly kill their businesses. So says Victor Green, author of How to Succeed in Business by Really Trying, and a serial entrepreneur who’s launched several successful companies, and has spent the past 15 years consulting with other entrepreneurs.
Here are the biggest blunders:
1. Skimping on research.
The only way to find out if an idea will actually work is to test it in the actual marketplace, Green says. “And once you’ve researched it, get a much wider look at how the industry will progress. You may have something that’s a good idea on day one, but will it continue to be a good idea over time?”
2. Focusing on revenues rather than profits.
If your main concern is revenues and how they’re growing, you’re missing the most important part of the picture, Green says.
Of course, Green concedes, most start-ups aren’t profitable right away. “It may take you five years to make a profit. But the purpose of a business is to make a profit, and you have to be honest with yourself about whether you can do that.”
3. Never giving up.
“People drive themselves to keep up an appearance because their egos get so inflated,” Green says. “Will you say, ‘I’ve been killing myself for two years, I’ve got $2 million invested, and I’m going to carry on no matter what.’ Or will you be sensible enough to say, ‘I’m a grownup. I’m going to shut this business down, it won’t affect me, and I’ll start again.”
Being willing to pull the plug on your own creation is the test of a true entrepreneur, he adds. “I always congratulate people who tell me, ‘I’m going to pull the plug–it’s not working.’ Every ‘t I can only think that they have a very poor memory.” …
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