3 Mistakes All New Entrepreneurs Make

3 Mistakes All New Entrepreneurs Make

Your problem is quite simple. You think you will not get hired.

So, you go into business for yourself. Then you realize you need more than determination and a great idea.

The mistakes were made, and you lost money. Now, you have to go get a job again. What went wrong?

Most likely, you made one of these 3 mistakes all new entrepreneurs make.

Case study: The best mac and cheese in the world

The case study below is based on a true story. This 1st-time entrepreneur wanted a new career.

But she lasted only 4 months before going out of business. This forced her to go back into the workforce.

Entrepreneur mistake #1:  All plans and no product

Great: Your spouse says you make the best mac and cheese in the world.

Not-so-great: It will go mainstream. You know the world will love it. So, you formulate a strategy and plan to hire the best people for the job. This is expensive.

Mistake: The problem is you never created a prototype of the product to sell. All you have is that one time you made a great dinner.  Speed to market is great, but you need something consistent to sell.

Entrepreneur mistake #2: Expecting customers to magically show up

Great: Your idea sounds great to everyone you speak within your network.

Not-so-great: The product has gotten attention. Some strangers tried it. Unfortunately, so did the Food and Drug Administration. And so did the US Patent and Trademark Office. A trademark infringement was filed against you.

Mistake: You launched your product. But now your network was afraid to try it because the FDA had to investigate you. The trademark infringement left your network afraid to talk about your product.

Your friends loved it. But how much customer-retention can you expect from your friends? They cannot eat mac and cheese every day. No customer bothered to try it due to negative media attention.

And you forgot to do one thing: Market your product. Your network and family was not enough to generate a loyal customer-base.

Entrepreneur mistake #3: You kept your idea a secret

Great: You knew you would have competition! So, you kept your idea a secret. After all, you have a family recipe that dates back more than 100 years!

Not-so-great: Your idea was such a big secret that no one knew about it.

Mistake: You forgot the one rule of thumb for starting a business: Competition is good for business.

Competition challenges people to be better. Conflict in a market drives customers. Customers love to shop at companies competing for their dollars. Customers get bored if you are the only business doing one thing.

Good competition forces businesses to innovate. Innovation drives change, growth, and leadership in an industry. This business closed after only four months and $1500 in sales. At least it was a learning experience for her next job.

And if your company fails, it will be a stain on your resume during your next job search.

Think about it before you make the leap

Pick an industry. Think of all the businesses currently thriving in that industry. How many businesses can you name off the top of your head?

Everything that works well can always be improved. Perhaps, you have an industry-disrupting idea.

Make sure you have a product, market it well, and never become complacent. Customers shop in businesses that fight for their love.

And companies hire people with successful track records.

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