Let’s face it; starting your new business is never easy because you’re investing time, money and resources on a ‘hunch’. In a nutshell you’re investing on something that may or may not actually work out in the end.
While most people would like to gladly work for themselves so that they can control their own their own time, not everyone has the will nor the patience to follow through with it though. Studies show that in average it actually takes around 5 years for any new business to just break even, basically you’re more likely to see any profits on your new venture after 5 years have passed which of course sounds like a bloody long time for any budding entrepreneur!
Of course, this is not always the case because a lot of entrepreneurs do reap profits almost immediately after they put up a new business – especially those entrepreneurs that provide service rather than a product. But typically, you are supposed to be looking at 3-5 yeas before you can start seeing any real profits so you really need patience if you want your business to stick around.
Now if you’re a budding entrepreneur who is interested in starting a new venture, then here are three crucial mistakes most people make that you should be aware of:
1. People don’t do their homework
The biggest reason most entrepreneurs fail is because they don’t do their homework.
The moment they come up with a good idea they want to get things going immediately without enough research or background work on this idea which of course is a big mistake! A good idea for a new business is a good start, but it is imperative that you do your homework though.
You should be asking yourself questions such as: Who’s your target market? Why would people buy your stuff? What makes your business unique? How will you market your new business? What sort of capital and resources would you need to get things going? How will you make the business grow?
There is no possible way any new business can succeed without proper research and background work. Keep in mind that Rome wasn’t built in a day; it takes time and perseverance for any business to grow. Just make sure you do your homework properly so that when hiccups start to show, you’re more than ready to tackle it head on!
2. People are afraid to take a risk
It’s quite simple really, no risk – no reward. The higher the risk – the higher the reward!
But in saying that though, keep in mind that you need to take “calculated risks”. Make sure you won’t get stuck at a point where you have zero dollars in your bank account because you have invested everything in the new business. Remember, it may take a while before you start seeing any profits from the new venture, what if it takes years and years before you start seeing any profits? What then?? Are you going to live on virtually nothing until the new business “potentially” starts making any real money??
Don’t be afraid to take any risks, but in saying that, just make sure they are calculated.
3. People don’t network
Your business will never succeed if you don’t know how to network and connect with others.
Start mingling with people who are actually successful in their businesses and learn from their experiences. Start going to functions and events and start connecting with potential sponsors and investors within your field. Networking is one of the key components in any new business, the more you network the bigger your database gets and the more people you attract to your business.
It’s simple really; you have to prioritise building relationships rather than making money because if you focus on building relationships first then money will eventually follow.