As readers of Bizzvenue, it’s quite likely that you have ideas for ventures and startups or at the very least you know someone else that has some good ideas. The thing is, some of us will succeed with terrible ideas and some of us will fail with groundbreaking ideas. The reason for this is that there are 10 common mistakes many entrepreneurs make, and these mistakes will pull you down no matter how good your idea happens to be. We are by no means saying you can’t make mistakes on your journey towards success. Many argue that mistakes are the only way to learn. In the words of Robert Kiyosaki
In the real world, the smartest people are people who make mistakes and learn. In school, the smartest people don’t make mistakes.
However, there are a few basic entrepreneurial mistakes that you really should avoid. It would be a waste and a shame to fall over these obstacles. These are the 10 most common mistakes entrepreneurs tend to make.
1. Not researching the market you are entering
Probably the biggest mistake of them all. Many entrepreneurs think up of an idea, they do minimal market research (if any) and direct all their energy and motivation towards immediately executing the idea as quickly as possible. They go flat out, working enthusiastically around the clock only to find out a few weeks (or even worse, a few months) later that their idea already exists and its being executed perfectly by another company, the idea has been tried and failed multiple times in the past, a competitor owns a patent for what you are trying to do, or any other vast array of reasons. All this could have been avoided if only a few days had been spent on research prior to entering the market.
The takeaway: Despite your gushing enthusiasm, and the unstoppable urge to get going, calm down and do some proper research. It would be a shame to throw weeks of work down the drain.
2. Desperately trying to come up with a revolutionary idea
We’ve all done it before. We sit down with some friends and force a brainstorming session desperately trying to come up with a disruptive idea the world has never seen before. The best ideas usually come naturally, when you aren’t actively trying to think of one. In fact, you don’t need a groundbreaking idea at all. Simply look at current products and services and see if there is room for improvement. Did Apple invent the mobile phone? The music player? Online music downloads? No. They didn’t . Steve Jobs simply looked at what was currently available and thought he could do better. It’s not just billion dollar companies though that can do this. Small startups are doing the same. Envevo looked at trash collection and saw that there was room for a massive efficiency boost.
The takeaway: Don’t force yourself to come up with an idea that’s never been done before. Let the ideas flow naturally to you, or look around and see what current products and services can be improved.
3. Wasting time on meaningless details
Far too many entrepreneurs waste a monumental amount of time of absolute nonsense. Do we use the word “disruptive” or “revolutionary” in our press release? Two things. Firstly, no one is going to read your press release and secondly, if someone accidentally does read it, they couldn’t care less. So don’t waste more than 5 minutes on things like this. Just because you’re working doesn’t mean you’re getting ahead. Make sure you’re not working away without getting anywhere. Always take a macro view of what’s happening and make sure you’re not wasting time on worthless tasks.
The takeaway: Take a step back and look at what you’re doing. How important is the given task? Does it warrant a full days work? You might be able to get it done 90% as well in two hours. Make sure you’re not wasting time on nonsense.
4. Not starting
Ironically one of the main mistakes entrepreneurs make is that they never get started. On the one end of the scale you have problem no.1 (not researching the market you are entering), on the other end of the scale you have the problem of not starting. Many fine entrepreneurs spend far too much time worrying and trying to find problems. Once you’ve done your research just start. Get going and tackle one problem at a time. “How will I arrange my taxes?” “What should our hiring process be?” “Where should we locate our offices?” Do you even have a product yet? Will you even be able to get a positive cash flow in the next 12 months? Don’t obsess over a problems that aren’t problems.
The takeaway: The first step to success is getting started. Don’t waste time and sleepless nights over problems that aren’t even problems yet.
5. Being afraid to share your idea
It’s quite likely that each and every one of us is guilty of this. We are all afraid that if we tell someone our idea he will immediately quit his job, tell his family that he is going to be gone for a few years, seek funding, copyrights, patents, build a team, design the product and get it on the market before you can. Of course we are not suggesting you post your amazing new idea all over Facebook. That would be quite stupid, considering the most helpful feedback you’re going to get is a like from someone you don’t ever remember becoming friends with. Sharing the idea with close friends is different though. It is difficult for you to be objective as you are the one that came up with the idea. A colleague will give you a fresh take on your idea. Don’t miss out on the valuable feedback your close friends can offer.
The takeaway: Building a new business or startup from scratch is hard. Really, really hard. Even if someone actively tried and did their best to steal your idea their chances aren’t great. So don’t let the tiny chance of your idea being stolen and brought to market shut off your channel to constructive valuable feedback.
6. Compromising on your choice of co-founders
The rise and the fall of a startup is all based on the co-founders and the relationship they share. There is zero room for compromise here. If there you have someone in mind that seems great but… fill in the blank, don’t take him. If you don’t share the same passion and if you can’t trust each other your venture is dead before it even got started. Evolero recently reminded Bizzvenue of the importance of this point.
The most important thing is the relationship between the co founders. It all starts from there. For Evolero it was mostly luck, but it’s very critical. The relationship between the co-founders is the key to success.
The takeaway: Don’t cut corners and make compromises on your choice of co-founders. If you’re having second thoughts about a potential co-founder keep looking. Don’t put your venture at risk before you even begin.
7. Bad mouthing your competition
This top tip was given to us by UpWest Labs. Your business rivals may very well be the worst people on plant earth. Do not however under any circumstances bad mouth them in public or in front of your customers. If asked what you think about them, politely give an answer along these lines: “Company X is a great company with a promising product. We however offer something different”. Bad mouthing your rivals makes you look weak, it makes you look childish and your customers won’t appreciate it. Focus on your own business rather than trying to point out why your rivals are useless.
The takeaway: Don’t badmouth your rivals, either they’ll ignore it and you will end up looking like an idiot or they will engage in the trash talk fiasco and you will both enter a terrible flame war. Either way you lose. Focus on your own business.
8. Believing your work will speak for itself
Sure, there are always exceptions. Look at WhatsApp for example. However, most of the time your product isn’t going to speak for itself. Some entrepreneurs take such pride in the effort they put into their business or startup that they believe marketing isn’t necessary at all. The product will sell itself. Wrong. The product needs your helpful hand. No matter what you’re doing, you need marketing. The scale of your marketing will depend on who you are, previous success, etc. Many great products failed because the entrepreneurs behind them believed the product was so great it wouldn’t require marketing.
The takeaway: You need to speak up for your work, before it can speak for itself. So fire up your browser, open social media accounts and begin sharing your product with the world.
9. Ignoring your emails
You get a notification, it’s a new email. You get many of these notifications everyday. Some of them are spam, some are serious, some are short and others are long. You take a quick peek and tell yourself you’ll answer later. In the meantime a week goes by and only then do you remember you have some emails that require your attention. Countless articles have been written about emails. Some suggest you answer them first thing in the morning. Others suggest you answer them at the end of the day. All we suggest is that you answer, and no later than 48 hours after receiving them. If you’re really stuck for time at least acknowledge you received the email and let the sender know you’ll get back to him in a few days.
The takeaway: Answer your emails within 48 hours or at least acknowledge that you received it. Otherwise it will seem as if you don’t consider the sender of that email to be important.
10. Thinking you’ll be able to handle the success
This is a good problem to have, but nevertheless, it could be a problem, at least for some of us. Say you mange to make it, you set a goal and you reached it. Now what? Startups are all consuming, they will take over your life. You may think that Larry Page has a great life, but if he goes on vacation for a week a huge backlog of work piles up. And since he’s a billionaire, he isn’t going to get much sympathy from anyone. Larry hit the ground running at the age of 25 and never stopped to catch a breath. If your dream is to build a small company that will bring in a few million each year and allow you to fly under that radar, you’ll be fine. If you’re trying to build billion dollar company and actually make it, your life is going to change. Will you be able to handle it?
The takeaway: Success can changes your life. Sit down and think deep and hard. How much are you willing to change. Can you live the life of Larry Page? Or would you be better off with a far smaller scale of success?
