Errors starting entrepreneur
15 January 2010Learn how to avoid blind sticks.
Millions of people want their own business. Some try. Few succeed.
Palos de cargo.
There are people who embark on adventures business without knowing how the market works. Too much enthusiasm and little knowledge about the new venture could lead to disaster. The typical example is the people who opened a restaurant without having ever worked there.
Solution: Learn as much as possible about the market before embarking on their own account. Want to open a local computer? Worked for six months in one to learn how to work from within and earn some money while acquiring knowledge.
Start without capital.
Does not charge customers. Please note that payments are often made with delays of 30 to 90 days, so it must have enough money until they pay their customers. The good entrepreneur knows that his business will start to give money in six months at least.
Solution: We recommend to employers who assume that their adventure will be longer than what we estimated. You must have sufficient capital to cover business and personal needs for six to 12 months. Obviously, the more financial support has been much better.
Happily spend.
There are people with great expectations: the most expensive office rent and buy the newest equipment, but fail to get clients. Many fall into this trap. Buy a new van, where the former would have been enough. They do so because they want to give a good image, but sometimes you do not need to appear is not.
Solution: Cut out on issues that are not essential, such as chairs or furniture design expensive. Buy beautiful furniture, but used.
Skip the plan.
Create a company without a strategic plan is like taking a trip without a map (inevitably, you lose). Many ambitious entrepreneurs fail to make a detailed plan, including: information about your competitors and scope of business. People want an office and print it on business cards, but do not want to do the work ugly.
Solution: Make the information available to design a plan, albeit very basic. Some banks will ask for this type of plan if you are requesting a credit.
. Skip Marketing. “
Marketing is the engine that drives any business, because without customers, no business. New entrepreneurs should invest between 50 and 75% of their time on marketing. If you take time in the market, should invest no less than 25% of their time. Many believe that all they have to do is open their doors to customers and that magically appear.
Solution: First, know exactly what you’re potential customers and what they want from you. Second, develop a variety of marketing tools. Remember to get new customers is more difficult, therefore, use tricks such as letters or postcards and ways to remember their businesses to their customers.
Business with friends.
If coworker is a friend or family, be aware that their behavior in most cases be subjective. Nor is it known how well their personalities will work together on the same working environment. It would not be the first time you destroy a friendship of twenty years in less than six months.
Solution: Set some ground rules before opening the doors of your business. It is very important to put everything on paper, especially when it comes to financial arrangements. First, assess the many in favor of each partner and their expectations in the business. Then, designate specific areas of responsibility for each partner. When problems arise, bring an impartial mediator.
Forget the details.
Everything seemed to go well in the business, until one day we read the column costs 450,000 pesetas and leave us with debt.
Solution: Keep in mind your credit, debts and sales rates. Buy a computer and a good accounting program will help you have all the numbers every day, when you’re in good financial times, get a credit for hard times. The worst time to borrow money at a bank when it is without funds.
Employing people not ready.
Sometimes you need to employ people full time or part time, as a matter of urgency. But without careful training can cost the company time and money.
Solution: Establish internal controls. You can even install an internal TV camera to monitor their employees. Improve their behavior.
Tremble before the competition.
It is unfortunate to know not to react when an aggressive competitor appears on the scene. If the competitor “strips” the price is not shy. Possibly at the expense of the quality of their products, and that you are the winner.
Solution: Before cutting prices to compete, make sure the customers by offering better service and a quality product.
Down on the partnerships.
Form a company in any way it sees fit, from the beginning. If you do not protect their interests, is leaving to spend their time. Do not wait for others to do so first.
Solution: You can hire a notary to help you formalize your association or do it yourself.
Listen only to encourage us.
When starting a business fall into the trap of paying attention only to people who encourage us: “Yes, your idea looks good!”…
Solution: Ask for criticism of their ideas. If you are unable to respond adequately to the objections of others, probably not as prepared as it should be to own your own business.
Do not be greedy.
When things go well, we think that will always stay that way But if you rest on its laurels, their actions can make a turn and suffer in terms of marketing and customer service. Your company may fall and will be forced to start from below.
Solution: Do not allow other people to exercise too much control in their business, remain as committed to their company as possible. Be greedy and never stop creating money. Need to get to the office every day thinking how to earn more hard. Have only two options: make a profit or fall into the abyss.
No Comments