Mistakes to be avoided when starting fresh in the market
Basics like market, money, speed, and exhaustion can destroy the finest business ideas as well if not taken into consideration.
Business owners who are new in the market are the most energetic and dedicated ones but there is certain risk which needs to be avoided to start well in the market. These business owners are passionate, but they need some preparations to battle different challenges that they will face in the market. First time business owners usually make many assumptions about the market, but the scenario is usually different in the real world.
So here are some mistakes that the first-time business owners should avoid for staying competent in the market.
Not evaluating the market risk properly
Ignoring market risk is usually the biggest reason why businesses fail. Usually, owners are more inclined towards making the technology perfect and working on their operations. That is something that all owners should do. But the most important is creating the real value of the business which needs to be delivered to its stakeholders. The owners should take at least 6 months’ time to test run their product before completely launching it. Talk to the potential customers to understand their needs and take approval of your idea before finally launching it in the market. Enough research and testing should be done before bringing any idea to the field.
Listening to every advice given
You will meet many people on your way who will suggest different things. But listening to everyone is just like making a fool out of yourself. Read success stories of many people in the same field to know their struggle and highlight important parts of their journey.
Disregarding positive feedback
Never ignore feedback from a loyal customer who has engaged deeply with your business. Having their feedback will prove to be very valuable for your organization. You might get associated with some stakeholders who have long year industry experience, and they might offer the best feedback to monetize the company’s product.
Moving at a very fast pace
You might have heard that moving at a fast pace is good for the business, but the best way is to first enter the market, get the best talent on board, and then finally invest capital in the business. Many companies face a downfall who get success very early. So, moving at a steady pace is important. Take your time to adjust in the market and understand what the customer really wants. Then grow your business analyzing and combating each risk that comes your way.
Hiring the wrong people
Looking at the budget of first-time business owners, they usually hire candidates at cheaper rates without giving much importance to their loyalty with the business. Your team is the backbone of your business as they can break or make your business into a success story. Head of product should be hired first and the head of sales later looking at what department needs to be addressed first. Key staff are usually hired with very less experience resulting in them making numerous mistakes. Usually, two people might be working simultaneously in the same company but they may leave with dramatically different levels of experience based on their involvement in the organization and their engagement.
For entry level positions, you can hire people with relatively less industry experience but for crucial positions, hire candidates with good industry experience.
Over-estimating the challenge of initial capital
It is not possible to get investors too soon. If you have adequate contacts in the market, you might be able to gather some investors. It is always better to start a business when you have funds to do so or there are people who believe in your idea and are willing to sponsor you. If your product has started well and is able to capture the attention of the market, investors will automatically contact you and would like to be associated with your brand.
Underestimating challenge of series funding
Business owners must level up their game to attract funding from the market and grow which is not easy at all. Creating value and delivering it to the audience requires time and patience. Business owners need an excellent team, proper strategic planning, accurate understanding of customer acquisition costs and other related revenue sources along with a real product road map. This is how you will be able to convince series funders to invest in your business.
Mental exhaustion
Business owners have a huge amount of pressure on their shoulders. They take no off-days and work tirelessly which leads to mental fatigue. But a healthy break from work is important to recharge the mind and restore the energy to work again. Over exhaustion might impact creativity and productivity level of the founders so a healthy break from work is important.
There is no perfect formula for first-time business owners, but these mistakes can combat risk and make place for their product in the market.
