5 COMMON MISTAKES ENTREPRENEURS MAKE

The number of businesses that don’t make it to the first stage is often quite surprising. More often than not, it’s because of many entrepreneurs thinking that they can be romantic and just jump into it. Very shortly after, their one-track mentality fails them. It is often due to not having a business plan at all, spending more time developing than advertising, and more time talking than listening. Below are five other common hindrances.

Micromanaging

Unfortunately, it’s all too easy for entrepreneurs to give in to the temptation to control every little thing when it comes to the business. This usually stems from the fear that something will get out of control and make the business go bankrupt. However, it actually has the opposite effect, and here’s why.

First, micromanagement hinders innovation. BPlans explains, “the satisfaction of knowing everything is going according to plan helps managers sleep at night. Project outcomes are easier to predict if the manager lays out every expectation and guideline for his or her employees in advance—no last-minute surprises. But, unfortunately, this results in no creativity either. Instead of innovators pushing their business to new levels, employees become “yes men” and “yes women.” One of the largest effects of micromanagement is employee timidness; in fear of making a misstep, people stop taking risks and do only as they’re told. No new ideas. No creative solutions.” As a result, you or your employees will be left with no desire to get creative and maintain needed upgrades. Basically, your employees become your doormats instead of your partners.

Second, micromanagement only leads to an increased amount of confusion. When the entrepreneur takes on every task on their own, employees don’t feel properly appreciated or utilized. If your employee is confused that he or she is job doing what you want, it may be necessary to step in and show them as you go. Another way to prevent this is to be clear and consistent with your expectations upfront when you hire new employees.

Third, micromanaging results in a high turnover rate.

Over-Leveraging

Over-leveraging is when you take on so much debt that you have no way of repaying your lenders in a timely manner. Entrepreneurs often make the mistake of borrowing more and more money to keep adding to their company, which only adds to the debt. Writers in Charge explain, “many times business owners will borrow too much because they want to see explosive growth or they expect that the more money they put into a business, the more it will output, but that’s not the case. It is true that you get back what you put in, but it’s not an immediate result.” If your company doesn’t do well, you will probably end up going bankrupt. As a result, it’s best to stick with just enough debt to give your company a chance to compensate with the profits to ensure that you will be able to pay it off personally if it doesn’t work out.

Substance Abuse

If you struggle with alcohol or drug addiction, the chances that your company won’t get anywhere are very high. So are the chances of you losing employees and customers very fast. As is well-known, addiction affects all areas of life. The Recovery Village explains, “withdrawal from drugs or alcohol can create intense cravings, and many addicts are so overcome by these cravings that they will do almost anything to feed their addiction. This is how addicts come to lose everything they have, including personal assets and relationships.” If you’re absolutely sure that starting a business is your dream, you first need to succeed in overcoming your addiction. It is strongly advised that you seek professional help as soon as possible.

Internalizing Negative Reviews

Regardless of your business strategy or product, you’re going to face an unhappy customer at some point. And in the age of Google reviews, social media, and the constant feedback loop, that unhappy customers will likely go online and leave you a negative review. At this moment, it may be tempting to react poorly by jumping online to defend your business–especially if you think the review is unfair. Many entrepreneurs may also feel defeated by negative reviews and worry that they have irreparably damaged their reputation. Rather than get defensive or internalize the negative review, take negative feedback as an opportunity to build stronger relationships with your customers. Podium advises, “Done properly, you can sometimes turn critics around and turn them into loyal customers. Barring that, you can show other customers that you care whether or not your customers have a good experience.”

Entrepreneurship is a challenge. However, you are not alone and there are ways that you can prevent most of the obstacles listed above. If you believe in yourself and are passionate about the company, you will succeed.

To improve your public image and to adjust your branding efforts, let Inspire Your Brand help. Get in touch with us today!