An entrepreneur has to be a leader, not just manager of a business. The individual should have a vision and inspire and motivate employees of a new business. The following article discusses the mistakes that can bring down a start up. The entrepreneur should be able to recruit talented people. For this purpose the individual should be able to make good impression on interview candidates. Many a time start ups lose their focus which should be product and consumers.
Mistakes that can bring down a start up
A start up is usually started by young people who do not have much experience of doing business. They have a business idea and might be having some funds. Such entrepreneurs are passionate about their business. Some of them are ready to learn while others straight out of college might not be mature enough. It is sometimes easy to start a business but difficult to survive in the market place. These entrepreneurs sometimes make mistake that can put at risk the survival of their start up. These mistakes are as follows:
Recruiting wrong people
In a start up all work cannot be done by the entrepreneur as the business starts growing. The question is what kind of people to hire to work for you. These people could be hired to work in marketing or production. If the business has simple production process there is no need to hire an engineer. The people those are hired should have respect for the entrepreneur even if the individual is a young boss. The person who has been hired to look after finance and accounts should be honest and ethical or the individual can commit a fraud. Then there are people who indulge in office politics. Such people destroy an organization. we are offering Assignment Help to get any time type of help regarding busines.
Scaling up too quickly
There are entrepreneurs who want their business to grow with speed. As soon as there are some sales they want to increase their production facilities and hire more staff. All these things need funds. A start up might not be having too much funding. Money should be spent with care. If new machinery is bought and there is no increase in sales with speed then the money has not been used judiciously. The money could have been spent to look after the current customers. Some more advertising could have been done with less funds.
No clear purpose
The entrepreneur should define the purpose for which the company has come to existence. There must be a vision and the employees should strive to make that vision a reality. For example the manufacturer of a mobile phone could have the vision to become a leading brand in the next five years. Sometimes a start up has no clear purpose for existence. There is no unity of direction.
Designing a product
A product should be attractive and useful. Sometimes the entrepreneur does not have a designing team or a design in the individual’s mind. Design of a product should make the product easy to use. If the design is not good, product might not sell.
Making something less useful
Sometimes a start up might have online business or an app which is fancy to use but in reality does not have utility. A start up should do research before actually making a product and launching it. The business idea should be such that can make the difference in people’s lives.
Going after investors not customers
Finance is needed for a business. Many entrepreneurs focus their energies on getting funding and not caring too much for their customers. As sales grow money would flow into the business. This income can be used for making investments in business. Customers should be most important for the business.
Not listening enough to consumers
Many entrepreneurs have some ideas regarding a product. They do not do market research. They are not ready to listen to the ideas of potential customers. This is a big mistake. Product would sell only if the consumers like it. The product should catch the imagination of buyers.
Not asking for help
Many a time entrepreneurs do not ask for help from people they know. A start up needs support of people who can bring new customers and suppliers. Building a strong network should be a priority.
Lack of growth plan
Strategic planning is sometimes not done by an entrepreneur. The individual should have a plan on how to beat the competition and what are the target buyers. The objectives should be there regarding growth in sales in the current year and the next five years.
Launching a product
Once a product has been developed it should be launched after sometime. In time to come new versions of the product should be offered to buyers. There should be proper development of a brand. Sometimes entrepreneur are scared to launch a new product. Proper innovations in the product can increase sales.
There are start ups where finance has been acquired still the enterprise is in critical situation. In this case too much money has been spent on advertising and hiring too many people. The entrepreneur should be prudent in spending money. The individual should have a proper growth plan for the business assignment help. A better strategy would be to acquire a mentor who can guide the entrepreneur through scaling up of business. More funds should be spent on developing products.