There are many reasons why people start their own businesses. Some successful entrepreneurs start own businesses in order to escape from a bad boss. That 95 percent of all entrepreneurs fail is not a secret according to a report by eMarketer from 2010. This begs one to ask the question, why do entrepreneurs fail to realize their business dreams? Although there is no simple answer to this question, it all boils down to discipline. In this post, I am going to discuss some of the most common pitfalls made by starting entrepreneurs.
1. Some entrepreneurs are not good communicators. Most of us are in business because we have a talent in our field, but that doesnt mean that we are capable managers. Good communication with employees and customers is essential for any successful start up. It is no secret that some business owners shout at their employees when blunders happen. I would suggest that you pull an offending employee aside to discuss what went wrong instead of shouting!
2. I know a lot of us entrepreneurs, including myself, run our own places/businesses with an emotional attachment to them. It is a pipe dream to expect employees to share that same perspective with us especially when they are poorly paid. To avoid this problem, compensate your employees adequately and congratulate/promote then when milestones/ achievements are exceeded. This is one strategy that will make you successful entrepreneurs.
3. Failing to check for competence. It is a common mistake that is made by a lot of start-up companies/entrepreneurs. Make sure that new hires can demonstrate competence before letting them into your business. This will avoid potential future misunderstandings and save your business potential costs of mistakes made by incompetent workers. 4. Transparency and truth. I know a some of us entrepreneurs do not like to accept the truth. If a deal with a business partner has gone awry beyond repair, there is no point of giving hope when you know clearly there is no transaction. Save each other’s time. Of course you should not confuse my words with pessimism which is a taboo word for any successful entrepreneurs. Be straight forward in your communication with business partners (including employees), tell them the bitter truth. It might be awkward to deliver bad news, but be honest and let the truth save you nasty rumours. 5. Trusting anyone blindly. One of the biggest mistake made by many entrepreneurs is to assume that their professional norms are everyone else professional norms. To avoid dissapppointments, I would suggest that you define in writing the kind of behaviour that is allowed at the workplace. Besides entrepreneurs should not make too many assumptions – make your hands dirty through digging deep into the fine details of a project. If you do not have the right kind of details, do not be surprised when a project fails catastrophically. Do not confuse my words for neither overhandedness behaviour nor paranoia! 6. Giving mixed signals. You should be a role model for your employees. Do not preach water and drink wine! I know applying this point to yourself as a business owner might be a long short. Nevertheless give it a try. Employees look to us for cues on how to behave. Of course there are exceptions to the rule, as at the end of the day, you are still the BOSS!
I hope my tips on how to become a successful entrepreneur will help make you a better entrepreneur for the year 2011.