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Typical mistakes novice entrepreneurs

In an interview, Radislav Gandapas (an entrepreneur with 18 years of experience, a well-known business coach) told how he once opened his business. Dear office in a new business center, a beautiful secretary, an expensive beautiful website, a chic catalog with a description of services, expensive business cards, a logo. Everything was top notch, but there was no sales.The project had to be turned off, and there was a huge minus in balance.
So mistakes are possible. And it is useful to know about the most frequent, so as not to repeat them when opening your business.
Error 1. Inefficient allocation of start-up capital
Typical mistakes in business One of the most important mistakes of start-up entrepreneurs is the illiterate distribution of start-up capital. Inexperienced entrepreneurs often become hostages of the belief that a business begins with the rent of an office, expensive office equipment, beautiful signs and other “tinsel”. I want everything from the first days to look solid. Many entrepreneurs think that it is enough to rent an office and hang a sign on how to build up a queue of customers. No matter how wrong!
An aspiring entrepreneur should ask himself just one question – where does the money come from in business? Money in business is taken from sales. Sales is the foundation of any business. Therefore, it is advisable to start up money in the first place to build sales channels, to organize the first sales.
If you are just registering the cost items for launching your business project, exclude in general those items that you can do without at first. You can do without an office at the initial stage – do not rent an office. You can do without a new printer – print on the existing old one. You can make an unpretentious website on your own – more expensive and more abruptly ordered later, when profit will be stable.
Starting a business with an irrational distribution of start-up capital is a rake that many successful Russian entrepreneurs have walked through at one time. Remember: first, the organization of the first sales, and then everything else!
Error 2. Inability to determine its target audience
Typical mistakes in business Often, start-ups have a lack of a clear understanding of what the target audience is and why market segmentation is needed. And this, meanwhile, is one of the most important factors affecting the success of a business.
If the entrepreneur at the start does not determine for whom the product (or service) will be specifically intended, he will not be able to develop a competent strategy for its promotion. You can spend your advertising budget as efficiently as possible only when you define your target audience quite clearly. Who are your customers? What are their needs? What is their income level? What are their motivations for buying?
Even if it seems that absolutely any person can be a buyer of your product, it’s not worth addressing an advertising message to everyone right away – this is a losing option. The more detailed you draw the image of your potential buyer, the more likely that your marketing strategy will give good results.
Error 3. Lack of a clear plan of action
Common mistakes in business Experienced entrepreneurs already know what to do, in what sequence. But aspiring entrepreneurs often do not have an action plan even for the first time after starting a business. This may cause the collapse of your business in the first months of its existence.
If an entrepreneur does not set out in advance a list of actions that will be carried out at least in the first year, then most likely there will be no time for that. And only those who are not sorry to lose the money invested in the business can afford to do business “at random”.
Register a plan of action for the next year. Write down the list of actions that will be needed to build a sales system. Write down what you need to do to convert casual buyers into regular customers. Register the system of search and selection of personnel, system of motivation of personnel. Register the system of interaction with suppliers, etc. And most importantly – write down ways to attract customers.
Drawing up an action plan is a very crucial stage. You will need to learn a lot of high-quality information or use paid consulting services. In any case, even the presence of at least some action plan is better than its complete absence. Another Plato argued: “A good plan today is better than a very good plan tomorrow.”
Error 4. Lack of understanding how to promote a product (service)

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Typical mistakes in business Some novice entrepreneurs do not fully understand the difference between the concepts of “sale” and “marketing”. If we speak rather superficially, then those actions that need to be made by the seller in order for the customer to buy is selling.

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