Being an entrepreneur is a big responsibility. The fate of a business is entirely in your hands. Successful entrepreneurs worked hard to get to where they are. They have overcome countless trials and learned from their mistakes. With that said, even if an entrepreneur is already successful, mistakes can still be made that can cause a business to collapse. Here are the six most common mistakes that newly successful entrepreneurs make detailed by serial entrepreneur and successful businessman, Victor Mitchell:
Being afraid to spend money
Your business is now self-sustaining. You’re making more than enough money to fund projects and explore new ventures. You can now upgrade your office, hire more staff, and buy a new car. But should you? A programmer with six years of professional experience under his belt wants to work for you. But why should you hire him if you can hire a fresh graduate for a fraction of the price? Why upgrade your office computers if the ones you have are still working fine?
Some things are just worth spending on. Upgrading facilities can improve employee morale. Hiring more expensive but experienced employees can be a good investment. And buying a new car for yourself can help rekindle your motivation. Don’t be afraid to spend a few extra bucks on things that could potentially improve your business.
Losing sight of employees’ individual skills
Most startups begin with a small, dedicated staff. Your initial employees form the backbone of your business. The bigger your company gets, the more employees you’ll need. Never lose sight of the importance of individual employees, especially those from your original staff. Your first batch of employees helped make your dream a reality. Their skills brought you to where you are. Their vision and passion for their work helped shape your company’s identity. Don’t shut them out when you’re planning something big for the business. Respect their feedback and give them the attention they deserve.
Trying to do everything on your own
You know everything about finance, marketing, and brand building. Your expertise brought you to success. Your business has recently been experiencing rapid growth. But don’t assume that you can do everything on your own. Social media, content creation, and building functioning websites may be things that you’re not familiar with.
The bigger your business gets the more responsibilities you’ll have to face. Getting a partner may be a worthy investment if you’re interested in growing your brand. Find like-minded people and work with them to achieve success.
It’s your job to provide direction and to assign individual tasks. Allow your employees to do what they do best. Let your employees do their work in their own way. Avoid stepping in and forcing people to do things the way you want things done. Trust your employees. Micromanaging every single aspect of your business will not only cause you and your employees unnecessary stress but may also result in an unhealthy working environment. As your business grows, it’s your responsibility to focus more on the bigger picture.
Expanding too quickly
In your first two months of business, you’ve managed to make $1 million in revenue. Because of this, you decide to launch three more branches in three different states simultaneously. Unfortunately, you’ve failed to account for people’s interest in your product.
Multinational businesses can afford rapid expansion. But new startups always have to be mindful of their money and resources. Don’t haphazardly expand left and right. Judge the market, scout your audience, and take into consideration if there’s enough leeway for your business to survive in case your expansions fail to perform.
No longer listening to advice
Every entrepreneur needs advisers and mentors. Keep your mentors beside you even if your business is already successful. A second opinion when pursuing new ventures and ideas can go a long way to helping your business. Mentors can help you avoid mistakes and make sure you stay grounded.
Successfully achieving the goals that you set out to accomplish doesn’t mean that you’re already in the clear. You can still easily make mistakes that could spell the end of your business. The bigger your brand gets, the more careful you have to be with it. Never lose sight of your vision, be cautious of every decision you make, and never forget where you started.
About Victor Mitchell
A serial entrepreneur, Victor Mitchell has successfully founded, acquired, and/or turned around numerous diverse business ventures over the past 30 years. His ventures include interests in finance, transportation, communications, technology, building supplies, real estate development and brokerage services.
Victor Mitchell is the founder and CEO of Lead Funding, a specialty lending organization that provides innovative private financing solutions for homebuilders and developers, reducing their red tape and speeding up loan decisions.
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