So many people in business make a lot of stupid mistakes, and here are the top 5 of them.
No man is an island
No leader can do everything alone. The inability to delegate leads to failure. Many businessmen cannot understand why they should pay others to do the work when they can do it themselves. In trying to save $1,000, they lose invaluable hours that could have been better spent or that could have been devoted to their family.
Without an outline of tasks, activities, dividing them into responsible persons, you can’t expect good results. You need to learn how to delegate tasks to employees, believe in their strengths, and focus on business growth. Then the attention will shift to the strategic goals and the company’s performance will begin to grow faster.
Lack of experience in your niche
Before you start your own business, it pays to work for other people. It helps to understand the specifics of a certain industry. Yes, sometimes a startup goes off without experience. But in 9 cases out of 10, the inability to build business processes will ruin your enterprise.
Working for someone else’s business is sometimes addictive. Later on, it’s hard to give up a steady paycheck and take a risk and start from scratch. But understanding the industry, presenting a portrait of the customer audience, gives elementary knowledge of the differences and advantages of payroll tax vs income tax, and this knowledge will become a competitive advantage.
Know your limit.
The English have a good saying: “Bite off more than you can chew. Many people have heard about professional burnout, but for some reason, they are sure that it will affect them. You can perform any task with enthusiasm. But every person has his or her limit, and you have to know it.
It is also worth understanding that there is a limit to the strength of employees, it is also worth knowing. You shouldn’t promise a bonus for overtime on the weekends, the payback will be mistakes in work, workplace rejections, or personal breakdowns. I’m not suggesting that we should indulge, but we should be careful about overloading employees.
Expectation and reality mismatch
Excessive expectations ruined more than one good project. Already at the start should determine the costs, to understand what difficulties lie in wait. You should not dismiss unpleasant predictions. Often we see reality, but for some reason, we do not believe the facts and believe in luck.
When they run out of money to cover the cost of the bank account, you have to recalculate the business model and completely change its concept. You will be lucky if you manage to avoid the point of no return and keep the enterprise viable.
Friendship is friendship, but business is not.
Entrepreneurship is based on money and profit. Trying to do business together with a friend threatens to ruin both the partnership and the personal relationship. At first, both will be on fire for bringing the startup to life. Then there will be a period of figuring out how each participant in the business has benefited, and each will be sure that he or she is right.
To avoid getting into an unpleasant situation, it is worthwhile to draw a clear line between friendship and business. Agreements are better secured legally. It is best to define the range of responsibilities and tasks and designate financial obligations. A pragmatic approach will help maintain the friendship, although difficulties still occur from time to time.
