Did you know that only 25% of new businesses last 15 years or more? Cisco’s CEO, John Chambers, estimated that one-third of businesses today will not survive the next ten years. Entrepreneurial success is not for the faint of heart. It takes hard work, courage, and faith.
Thankfully, you can learn from the mistakes of past entrepreneurs so you don’t have to repeat their errors. I’ve started several businesses and made just about every mistake you can make. By the grace of God, I’ve learned from them and came out on top! So, in this blog, you will learn how to avoid 12 of the common mistakes business owners make so that you can reach entrepreneurial success faster.
12 Common Mistakes Entrepreneurs Make Are:
1. They Don’t Focus on Personal Development
2. They Aren’t Willing to Fail
3. They Try to Multiply Before They’re Fruitful [They Scale Too Quickly]
4. They Lack the Ability to Pivot or Change
5. They Don’t Gain Business Knowledge
6. They Confuse a Good Idea with a Business Model
7. They Don’t Properly Research the Competition
8. They Neglect Marketing
9. They Don’t Have an Exit Strategy
10. Their Systems and Processes are Inadequate
11. They Are Under Capitalized
12. They Hire the Wrong People
How to Escalate Entrepreneurial Success: Avoid These 12 Mistakes
1. They Don’t Focus on Personal Development
Regardless of your profession, one of most important things you can do is invest in yourself. You take value, not time, to the marketplace. In order to reach entrepreneurial success, you must commit yourself to learning how to bring new value every day. If you work harder on yourself than you do on your business, you will perform much better in your business!
2. They Aren’t Willing to Fail
I know, you’re reading this blog to learn how to avoid mistakes. Here’s the irony– you must be willing to make mistakes of your own if you want your business to grow. Fear of failure is the reason that so many entrepreneurs limit themselves and fail to scale their business. You can’t avoid risk– especially in business. Life is so risky, you won’t get out alive! So, become a resilient learner. Profit is made by solving problems that other people can’t solve, including your own.
3. They Try to Multiply Before They’re Fruitful [They Scale Too Quickly]
According to the Startup Genome Report, “Seventy-four percent of high-growth internet startups fail because they scaled too fast, too soon.” When it comes to entrepreneurial success, patience is a superpower.
Genesis 1:26-28 says, “Then God blessed them, and God said to them, “Be fruitful and multiply; fill the earth (replenish) and subdue it; have dominion over the fish of the sea, over the birds of the air, and over every living thing that moves on the earth.”
Be fruitful before you multiply. Be successful before you scale. For example, ensure you have the financing to put into business growth before you take leaps that you can’t afford. Before hiring more staff, ensure there are systems and procedures to maximize their effectiveness.
4. They Lack the Ability to Pivot or Change
Entrepreneurs must be willing to leave what’s familiar and comfortable for the sake of the business and the people they serve. Successful companies know when to pivot and adapt to changing markets. For example, when the pandemic shut-down in-person dining, the restaurants that stayed in the game were the ones who expanded their delivery and take-out options.
Read Next: 3 Examples of Business Innovation from the Pandemic
5. They Don’t Gain Business Knowledge
Before you become a millionaire in your wallet, you must become one in your thinking. Without relevant knowledge, you will lose the money you earn from your business. Proverbs 22:4 (NLT) says, “True humility and fear of the Lord lead to riches, honor, and a long life.” Humble yourself and become a lifelong learner. Position yourself around business people who know more than you do!
6. Confusing a Good Idea with a Business Model
Ideas are a dime a dozen. If you want to reach entrepreneurial success, you need a good business model. In fact, it’s better to have a “B” idea with an “A” business model than it is to have a “A” idea with a “B” business model! The Business Model Canvas breaks down each component of a business model. Remember– if you don’t have a revenue stream (ideally at least 2-3), you don’t have a business model.
7. They Don’t Properly Research the Competition
As an entrepreneur, you need a good gauge on the competitors in your market. If people don’t purchase your product, what are their other options? Proper market research will help you know how to improve your business and stand out in a contested market space.
8. They Neglect Marketing
In his article in Success Magazine, Darren Hardy wrote, “Your product accounts for only 10 percent of your business’s success, with 90 percent coming down to sales and marketing.” The countless hours of work you put into your product or service is voided if you don’t put energy into your marketing strategy. For every dollar spent in developing a product, five times that amount should be spent on marketing it.
9. They Don’t Have an Exit Strategy
When done well, entrepreneurship is a pathway to financial freedom. Unfortunately, many people become trapped in their business because they don’t have an exit strategy. An exit strategy is all about beginning with the end in mind. Whether it’s selling or converting it into another type of business, there are several ways you can plan to get out on top should you need to make an exit.
10. Their Systems and Processes are Inadequate
Systems and processes enable your business to function effectively. They streamline your workflow and make it so that you can delegate better. The right system equips your team to manage and do the work so that you are free to lead and oversee the strategic direction. In addition, processes like measuring KPIs (key performance indicators) help you define success so you know when your business is reaching it.
11. They Are Under Capitalized
Many times, entrepreneurs underestimate the amount of money they’ll need to sustain their business. They are under capitalized, which means they don’t have sufficient financing to conduct normal business operations or pay creditors. To reach entrepreneurial success, one of the most valuable things you can do is develop your understanding of finance.
12. They Hire the Wrong People
As Jack Welch, former CEO of GE, said during an interview, “No matter the innovations and
changes in the marketplace, the one thing that hasn’t changed is [that] the team who fields the best players wins.” The cost of a poor-performing team member is up to 15 times
their annualized salary. Invest up-front in quality people. An entrepreneur is only as good as their team. If you’re running your business solo, that’s fine for a time. However, you’ll eventually need a team in order to scale and delegate so that you can work on your business more than you work in your business.
We hope this blog gave you insight on how to reach entrepreneurial success. To learn more, we encourage you to register for The WealthBuilders Business and Nonprofit Workshop! This 3-day event will equip you to run further with your God-given vision. Click here to learn more about The Business and Nonprofit Workshop.
