An inevitable part of a running business are mistakes. They teach entrepreneurs much more than any business school ever will. Some mistakes in managing and operating a business can be a threat to the organisation’s long-term viability. With numerous businesses getting shelved each day, it is vital to be aware of and avoid such mistakes. Here is a list of common business mistakes that entrepreneurs need to avoid:
Lack of planning
An idea is enough to start a business, but a plan is essential to sustain it. Lack of a basic business plan is one of the most common business mistakes can eventually lead to shutting down of the business much earlier than expected. Developing a plan, reviewing it and even modifying it on a periodic basis is instrumental in sustaining it, if not scaling it up.
Devaluing your employees
Employees are a company’s most valuable assets and they need to be treated like that. Working on their job roles, holding them accountable, rewards/incentives for good work and recognition in the company are massive motivators for anyone. It is also important that the company doesn’t compromise on the internal communication of the company.
Ignoring market and technology changes
If there are two things in the world which redefine the word dynamic – they are marketing and technology. Customers tend to forget businesses that stay outdated. To keep up with changing market situations, it is important for a business to regularly update and adapt to newer technology. A focused market research team can help in understanding changing customer needs. For example, newspapers would have been extinct in this era of speed news, if not for e-portals that have helped them retain their market standing.
Lack of a diverse team
The Indian market is diverse. To understand and cater to this kind of a market, it is important to have a team that appreciates, respects and reflects this diversity. While forming decision-making teams, businesses should avoid monotony in terms of education, culture, mindset and gender.
The game of funding
According to a recent survey conducted by Xeler8, a venture capital and startup research platform, at least four businesses in India have raised funds every day during the first quarter of this year. There are also a high number of startups that have failed miserably after being funded. So putting extra efforts to get funded is a mere waste of time and energy.
Improper time management
A day wasted at work equals wastage of many resources. Businesses should evaluate the what-ifs of every step they take. A failure which is worth nothing costs a lot of time and resources. For example, the case of online fashion retailer Myntra, which could have been one of biggest e-commerce players in India today, remains a major lesson to all new entrants of the industry. The company bore the brunt of one wrong evaluation of going app-only and took a year to catch up with their lost business through the launch of a mobile site in February this year.
Creating marketing mirages
It is important to be honest about your product, especially with customers. Exaggerating and creating marketing mirages about the business will help for a while, but will eventually lead to downfall because of the failure to meet the created buzz. Too much marketing kills, so does too less.
Just crazy amounts of work!
All work and no recreation can even make the happiest things dull. It is also why early burnouts take place. It is essential for businesses to celebrate their successes and enjoy their time at work. This will help recharge the team spirit and energy levels of employees. So work hard and party harder.
Learning from your own mistakes is good. But why make these business mistakes when many already have and have faced irreversible consequences?