Making mistakes is easy –we’ve all done it. But for young entrepreneurs - the mistakes made early in your start-up will have a drastic effect on the future of your start-up. The choices you make now will determine your future success and the profitability of your company. Avoiding these four simple mistakes will assure you greater success and a chance at profitability.
1. Lack of True Vision
Many people go into business without a vision, but it winds up costing them lots of wasted time and money in the long run. Start your company from day one with a vision. Your vision should be the “ideal end result” –the company of your future. Where do you want your company to be in three to five years? How many hours are you willing to put in? What kind of culture do you want to have? What must you accomplish to get there? A clear vision of your future gives you greater direction, and with greater direction you’ll reach your destination much faster.
2. Failing to Understand the Business Side of a Start-up
As a young entrepreneur, you must educate yourself and learn to operate your company like a business from day one. Gain an understanding of things like cash flow, overhead, personnel management, ROI, marketing and customer service. If you really want to be successful, you should dedicate time for working on your company, not just working in your company. Set aside time every week to work on your business, making it a real business.
3. Focusing on the Product, not Relationships
It’s not all about your product, it’s mostly about relationships. Young entrepreneurs are sometimes so focused on building their product that they forget about forming a true, trusting relationship with every employee, customer and investor. Your company will be more successful if you focus on your relationships as much as you focus on the product.
4. Failing to Set Goals and Monitoring the Results
Goals and Milestones represent the incremental steps to the company of your dreams. Goals give you direction and a target to aim for. Setting and achieving both personal and professional goals is one of the best ways to measure the progress of your life and your company. Include your team in your goal setting and share the rewards and wins with them when you reach a milestone. Always monitor your results because numbers don’t lie.
Avoiding these common mistakes and pitfalls will not only make you a better leader, but will also help your start-up become the successful company it can be.