All New Entrepreneurs Should Avoid These Mistakes

All New Entrepreneurs Should Avoid These Mistakes

A new entrepreneur may feel as if he or she is on a roller coaster ride, especially when starting a new business. A majority of small-sized business entrepreneurs who experienced failure will still vouch that the risk was worth taking looking at the potential rewards. However, it is essential for new entrepreneurs to adopt a cautionary approach. Irrespective of what kind of preparation goes into that new business of yours, learning hard lessons in the way becomes an integral part of this journey.

An essential component of beginning a business is to have a well-structured plan in place and then practice a disciplinary approach to take quick and timely action on it. It is not exactly an exciting proposition to be associated with a startup as you may need just to submit yourself to the flow of the process. Ranging from stiff competition to inadequate funding, a new entrepreneur has to be prepared for different types of hurdles and challenges. Taking necessary actions to avoid such mistakes is highly imperative while beginning a new venture.

Following are some of the mistakes all new entrepreneurs should try to avoid:

1. Getting confused between an excellent opportunity and a good idea

It is indeed a wow moment for every entrepreneur when they hit upon a new idea related to a service or product. Plus, such moments help to reignite the passion within an entrepreneur leading to a great deal of perseverance. However, even if the idea appears to be highly unique, if it does not fetch equivalent market acceptability or fit, it is difficult for your business to succeed.

There is hardly any guarantee of your customers demanding it merely because you conceived and then built it. While the birth of new ideas is essential, it is even more crucial to assess its opportunity in the market to get the desired return on investment; In fact, opportunity stands at the crossroads of a problem if a low requirement is felt by your customer and the capability to fulfill that requirement. If conditions are favorable, extracting an opportunity needs to be translated into the creation of value.

If you refer to past cases, you will find that some of the most prominent tales of success were that of businesses, which began as something else. For instance, when Flickr started its journey, it operated as a tool for photo-sharing for Game Neverending, an online game. Another good example is Instagram that started its mission as a photo and gaming app. Even the journey of Twitter began in the form of a side project with a podcasting organization to transmit SMS messages. Groupon’s operation started as a website for social-fundraising.

2. Improper estimation of the cash required

Expenses to begin a new business may not be the same as it may range from just a few thousand bucks to millions of dollars. The amount of cash required will be determined based on the kind of business an entrepreneur launches. Trying to figure out the type of money you may need to start your business depends partially on facing a projection of the kind of revenue the new company is expected to generate to offset startup expenses. However, it can be a complicated calculation, which depends on plenty of shifting variables. However, you need to keep one crucial point in your mind. A majority of businesses fetch modest returns in the first year. In fact, over 75% of new ventures are known to have their annual revenue at less than 50,000 USD according to a report published by Kauffman Foundation.

Regardless of the kind of business you are in, a great practice is to keep more provisions in your budget than what you think will be required. According to Eric van Merkensteij who was a professor at the University of Pennsylvania and then owned a restaurant for five years, there is a strategy to deal this. He shared this with SmartMoney. Eric said that an entrepreneur needs first to calculate their upfront investment expenses. After that, the figure needs to be doubled and then redoubled.

You will come across several online tools that can calculate the upfront cost required to start your business. However, seasoned entrepreneurs will still advice that you are perhaps underestimating in arriving at the cost in the beginning.

3. Giving first preference to your product and last preference to your customers

While ascertaining your business model and designing your products, you need to have the mentality of providing the first preference to your potential and existing customers. Several such new entrepreneurs are engrossed just about earning more money that is entirely understandable. However, they overlook the importance of creating a sustainable business. It is extremely crucial to have loyal and satisfied customers who will be repeat customers and purchase from you even in the long term.

Starting your entrepreneur journey for the first time is a tough job, and there may be mistakes in the process. That does not signify that an entrepreneur has to go on repeating the mistakes of everyone else’s.

4. Overestimating that you can do everything all by yourself

When you start a business, it is normal to feel that you are best at that job and no one else can match your ability. You think you are the best connoisseur of your product and are the one who possesses the desired passion for getting success in your business. However, such a notion can be a perfect recipe for getting burnout entirely and can impede the progress of your business in a big way. It is essential to have an experienced and knowledgeable mentor or consultant to help you in your much-required objective in the market and your business.

5. Thinking that you have the entire world in your hands

While the emergence and popularity of Internet have made it an indispensable part for companies, if you feel that your marketplace constitutes of a borderless globe, you are sadly mistaken. It is precisely applicable to a majority of small businesses.

While tech-based organizations with only some employees but dealing in billions of dollars could be grabbing the news headlines, Internet companies comprised of even less than six percent of the total number of new businesses in 2013. The Kauffman Foundation shared the data. Nevertheless, it may sound a bit strange the reality even today is that a majority of new companies do not mint money from around the world. Instead, they earn their revenues around the corner.

6. Being deprived of strength by the apprehension of many what ifs

The prospect of starting a new company can be scary for any first-time entrepreneurs, and it is not something a fearful person can do. It is entirely logical to feel afraid of rejection, disappointment, and failure. However, making yourself utterly powerless by such thoughts can become a big stumbling block for the progress of any entrepreneur. The first significant step to combat such fear is to recognize your common worry since there is a reassurance for you that there have been others in your position at some point in time.

7. Setting a small profit margin

It is critical to have a significant profit margin for the success of your business. If you set the margin too low now, life can be quite tough for you going forward. After all, your customers are hardly going to be happy if you decide to increase the prices afterward. You should start taking a close look at your operational and production costs. You should then try to ascertain the kind of flexibility there is. Will you be able to lower these expenses in the future in case it is necessary to do? If that is not the case, select a higher margin of profit now for accommodating those costs.

8. Overlooking the importance of marketing

It is a misperception among some entrepreneurs, especially the new ones that they would launch revolutionary products or services. They feel their products will speak for themselves, and a positive word of mouth and free public relations will work wonders for earning impressive revenue.

Still, the bitter reality is that most of the startup businesses may have to make a substantial investment in marketing activities. These channels may include content marketing, Search Engine Optimization, paid advertising and public relations. Make sure you do a study on where your business rivals are spending money on marketing activities. Do a self-retrospection on how you can differentiate or compete yourself.

9. Setting up unrealistic goals

A new entrepreneur could get too carried away by their so-called big or innovative idea. As such, they may fail to work with a stable and well-structured plan. In reality, you should set up attainable, realistic and measurable goals for getting success in your business.

Make it a regular habit of setting up long-term as well as short-term goals. You also need to ensure that all these goals are specific. Start your goal setting prices by defining a reasonable goal. Then, ascertain the kind of steps you should take for attaining it.

10. Using cost as the only criteria for making hiring decisions

It is a regular phenomenon seen even in some established businesses. When a company has problems related to funds, often it tries to reduce the cost of hiring new employees. However, the strategy is a faulty one since you may end up making more payments in the long term.

If you plan to hire low-cost consultants and employees, you should remember that they are charging less probably due to a particular reason. It is likely that such workforce is unreliable, unskilled or semi-skilled or inexperienced or a combination of all three.

11. Assuming that there is no direct competition

At times, the excitement about launching a new service or a product can make a new entrepreneur think that there is no direct competition in the market for them. They may also assume that their products are far more superior as compared to their rivals and they are in a class of its own.

The fact is there is hardly any business that does not have any direct business rivals. Unless in the rarest of rare cases when you invented a brand new product, it is very likely that there are existing players in the market who share the same niche.

Disclaimer

Any information on this article is published in good faith and for general information purpose only. The writer of this article does not make any guarantees about the completeness, reliability, and accuracy of the information on the article. Any actions you take upon the information you find on the article is strictly at your own risk. The author of this article will not be liable for any losses and/or damages or illness in connection with the use of our article.

 

 

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Top Coworking Spaces Around the World!

What do other coworking spaces around the globe look like and function?

NeueHouse in Hollywood, California

BeacHub in Koh Phangan, Thailand

B. Amsterdam in Amsterdam, Netherlands

Dojo in Bali, Indonesia

The Farm in New York City, New York

OPEN in Johannesburg, Africa

To see more coworking space facilities in different parts of the world, visit: https://www.huffingtonpost.com/entry/the-20-best-coworking-spaces-across-the-globe_us_59c42edae4b08d661550413b

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Tips For Growing Your Freelancing Business

Are you a freelancer? You may be writer, web designer, marketing professional or new to the startup world! Regular clients are always good, but you have room to grow. So how can you kickstart your freelance business into overdrive and gain more clientele?

1. Define Your Strengths & Weaknesses

Review your current processes. What’s working and what’s failing? Have you reached your goals lately? If so, how did you do that? Are you budgets on track? Do you need to cut spending anywhere? Is anything holding you back? If so, cut your losses! Look for ways to make sure your failures don’t reoccur. Consult a business analyst for extra help too! They have the skills to identify any additional areas need for urgent change.

2. Review Your Pricing & Rates

Are you charging appropriately for the value you are giving to your clients? Research what competitors are charging their customers. Maybe you have clients that don’t appreciate your value and challenge your rates constantly. Maybe it’s time to find a customer who values your work and is willing to pay for it. Make sure you are always earning what you are worth for every job! Don’t cut yourself short.

3. Increase & Improve Skills

Are there any opportunities to get better at what you’re doing? OR could spend time to gain additional skills to improve your business model? Has a client asked for something you cannot provide but would love to? Maybe it’s time to offer something additional to your clients that can make you stand out from the rest and increase your reputation throughout your industry.

4. Expand Your Marketing

Do you only market yourself when you’re slow? You should constantly market and advertise your services, even when you are busy. Take advantage of social media advertising, both free and paid. Explore different platforms on the internet and spend a substantial amount of time seeing what works and what doesn’t in the advertising world.

5. Networking!

Build relationships with other freelancers and business professionals definitely will pay off. By word of mouth referrals, you could build a huge empire alone! Don’t be shy, you never know who could need your services. Drop a business card off, send an email, strike up a conversation in your current coworking space.

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30 Business Startup Ideas

Thinking about starting your own business? Here are 30 startup ideas to get your brain flowing. And then when you’re up and running, join our coworking space in Gloucester County, NJ to let your new startup flourish!

Source: https://www.oberlo.com/blog/business-ideas-that-make-money

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How to make most of your coworking space?

1. SAY HI TO PEOPLE

In a coworking space, you are able to meet new people on a daily basis. New members are constantly joinging so the chances of you meeting someone that provides a cool service you may need is pretty high. And likewise, introducing yourself to people is important to let everyone else know what awesome business you have too!

2. ATTEND EVENTS

If your coworking space has an event like a breakfast or luncheon, make sure you go! It’s an easy way to meet other professionals in your coworking space and strike up a conversation. Networking here is key!

3. REFER BUSINESS

Is your friend Joe looking for an accountant? Maybe you can refer Joe to Steve, an accountant that shares space with you at your coworking facility. Steve may start sending his clients or friends over to you for referral business as well.

Thinking about taking the plunge and joining a coworking space? Contact us today and we’ll give you a tour of our Gloucester County facility, Incutate!

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New Startup Business? A Coworking Space Can Benefit You!

Startups definitely have humble beginnings. You most likely started out of your basement with a friend and your idea became a success.

Now your garage or basement has become a not so great work environment. Your meetings with clients next to old boxes and lawn equipment isn’t the most professional setting. And your kids and dogs have made productivity an all-time low now that you’re constantly busy and ready to conquer more of the world.

All these problems can be avoided by moving to a coworking space like Incutate, in Mantua, NJ. Coworking facilities have become very popular with freelancers and startups. Different membership options provide an affordable way to upkeep your new business and many professional amenities that you cannot get at your home office.

A conference room, high speed internet, networking are just some of the basic benefits of a coworking space. The environment is perfect for finding new clients, advice and a place for your new startup to grow.

Take a look at your membership options and see if our Gloucester County facility is a perfect fit for you!

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Here’s How You Can Network With Other Professionals in a Coworking Space

Congratulations on your new business! But where are you going to work? Your house? Your basement? The coffee shop?

If you’re not reaching out and networking with other businesses in the coworking space you are apart of…YOU’RE MISSING OUT BIG TIME! Networking with others within your coworking space is one of the top perks of being in one. Different industries, new and old take advantage of coworking facilities. And they can help grow your business; refer you different strategies and business help and spread the word of what you do, especially if you’re a startup that no one knows exists!

Strike up conversations while standing at the copier and coffee maker. Even if it is just small talk and nothing related to your business, ask how they like being a member of the coworking space and if they have any tips.

After initially meeting other members, you may find that they offer something you may need. Offer trading services or share knowledge of business tactics and lead generation. Do they have preferred vendors? Ask, you may get a deal!

Thinking about join Incutate? Take a look at some of our current members.

So get out there and start mingling!

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Would a Coworking Space like Incutate be a good idea for your startup?

Congratulations on your new business! But where are you going to work? Your house? Your basement? The coffee shop?

Many new businesses choose to run their business out of their home. In face, about half of the startups in the United States do. But your home office sometimes isn’t the best environment for more employees or meet with clients. Home offices are also filled with distractions.

Home offices are also missing one important factor; HUMAN CONTACT! Other human contact in a business setting is great for networking with other startups and businesses, but for your sanity as well. A home office again, is filled with many home distractions and can be TOO quiet.

Office space for new startups can be too expensive. And a busy coffee shop can be too loud and have limited space.

A better idea is a coworking space, like our’s in Mantua, Gloucester County, NJ. A coworking space brings together many startups, remote workers, freelancers, small business owners and staff in a shared working environment.

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How much are you paying for high speed internet?

One of the biggest tools in the business world (and social world for that matter) is the internet.

That’s where it all begins. That’s where you find clients and customers. That’s where you market yourself. That’s where you network with other professionals. Without it, your business would struggle in this day and age. Sure, you could possibly go without if your word of mouth referrals were lit. But why would you?

The cost of high speed internet for businesses varies, but typically, it’s not cheap. Especially if you have multiple devices, high data usage, website hosting, many transactions, etc. You need something fast and efficient, nowhere near the service you get at home to watch Netflix.

Comcast’s best business package is almost $400! That’s a HUGE expense.

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