For most newbie entrepreneurs, overconfidence is not really the common issue especially when it’s still the first time to setup a business. However, lack of experience can lead one to commit mistakes that will eventually bring the business down to early closure. If you are one of those mums who dream of becoming a successful entrepreneur someday, you can follow some of the following advice to minimize the risks of incurring debts as well as other consequences that may present a lot of problems later on.
Letting Your Beliefs Dictate
It is common for most entrepreneurs to trust what their gut is saying but that shouldn’t be the case in all situations. What you think and feel might not be what you are trying to build and may end up with means not meeting their ends. Make a well laden business plan which addresses all the major concerns that your businesses will face as it start its operation. Consider in your plan where to get supplies, equipment and labor as well as assess their reliability. Conduct your own studies and surveys across town and see if your services will sell locally. If your local market is weak then do not expect your business to propagate.
Listening To Hearsays Instead of Statistics
There are times that gossips and suggestions from customers can help on your plans when starting a business but most of the time, spreadsheets and statistical data are still the most reliable source of information. The best practice is to always do the research yourself and don’t ever get tempted with suggestions that lack credibility. Look at the availability of supplies, the demand curve, the trend and many other graphical data that will help you determine if your business is feasible as well as profitable.
Spending a Loved One’s Retirement Fund
Lacking funds to build your business shouldn’t be your reason to risk someone’s retirement fund. What if your business fail? Can your conscience take it that you have dragged down someone you loved into the pit that you dug for yourself? Building a business shouldn’t be a concern of others unless they plan to invest in your business or co-own it.
Trying To Launch Prematurely
Many businesses that failed in their first 3 months are due to premature launching. This is because they are not able to properly prepare the requirements needed for a smooth operation which ends up not being able to meet the customers’ expectations. Some mums want to open their business during a special occasion but if you think that your business still have many things to fix, then you should never get tempted to start early or it will cost your business a bad impression among potential customers.