Entrepreneurship is, for many, one of the greatest aspirations in life. However, having a good idea is not enough to avoid failure, especially when it comes to entrepreneurs who have just started a business.
The five most common mistakes that inexperienced entrepreneurs make when starting a business are explained below.
1.Invest too many resources. Sometimes, entrepreneurs invest too much time and resources in their idea without contrasting it with market needs.
“We see a dissociation between the idea and the market.” Consistency between these two is essential for the development of any new business. You may have a very good idea, but if you do not reach the potential customer, it is an investment that will not pay off.
2. Do not ask the right customer. The first approach that novice entrepreneurs have with clients is through family or friends, however, it advises young people to lose their fear of the market.
“Family and friends give positive feedback, but it is not the same as confronting someone who doesn’t really know you and who is going to critically review your business. Get closer to those potential customers. ”
3. Not knowing what the value proposition is. Not being clear about the value proposition that is being generated with the product or service that is being brought to the market, in addition to reducing credibility to the entrepreneur, creates uncertainty for his work team and its investors.
“When the entrepreneur is not clear about this, he is less able to explain it to an investor, customers or the market.”
4. Fall in love blindly with the idea. The reality is that no venture is unique and does not work for the interests of all customers. Entrepreneurs must know how to define when it is worth continuing before they fail.
“All entrepreneurs believe that their idea is the best, that no one else has come up with, and sometimes it may be that yes, but there comes a time when the market itself puts you all the obstacles that you should not out there continue and that is the time to analyze if you continue with an idea that is not technologically and financially viable ”.
5. Think you can undertake alone. No matter how prepared an entrepreneur is, he can never have the full vision of a business, so it is necessary to have the experience of someone who handles the technological, legal, human resources issues, among others.
“It is important that together with the issue of entrepreneurship, universities promote teamwork, develop leadership skills and help young people find those people who will be the ideal ones so that together they can develop good business ideas” .