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Entrepreneurship

4 Mistakes That Almost Every Entrepreneur Makes! (But Must Avoid For Beneficial Business)

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Entrepreneurship is a big term and a huge responsibility that not every individual can perform well. Most startups come up with big visions, well planning of the entity, huge financial investments, etc. but still many of them fail to run the race for long. It is reported [1] that out of all the startups, almost 90% succumbs to the various circumstance which ultimately leads to their downfall or closure. The reasons vary in every case but the few common factors that the budding entrepreneur make are counted to be the crucial ones in any business downfall.

Let us know in details what these common mistakes are that the entrepreneur make and which they must avoid so that their businesses can reap the best of returns:-


Mistake#1: Taking unwanted monetary risks– every business person always dream of investing as much as they can to gain or profits out of the same! And it is one of the primary reasons they love taking risks while investing in their business. Of course, there cannot be good business without taking risks but taking unwanted risks must be prohibited. You must know your financial limitations and take actions accordingly.

Mistake#2: Focusing on the clients more than the employees– most businesses prefer to focus more on the clients while neglecting the employees. They forget that the clients are there because of the employees and without the contribution of the employees, they won’t even get the clients. So, it’s always recommended to the entrepreneurs that they take care of the employees at par with the clients so that they get mutually benefited from each other.

Mistake#3: Not taking business loan insurances– many growing businesses get business loans [2] for making bigger investments but they fail to take insurance on the loan that is taken! This is indeed a foolish decision as investing some amount on the insurances can actually help you deal with higher losses. If at some point you face conditions like bankruptcy or huge losses, this business loan insurance can help you cope up with the repayment of the loan in better ways.

Mistake#4: Focusing on quantity rather than making the quality better– many entrepreneurs think that by giving more they can get back more in return! And while doing that, they compromise with the quality of products and services they are offering to the customers. One must avoid doing that to retain a customer for a longer period [3]; quality matters over quantity, always!

Finally…

Choosing entrepreneurship as your career choice is a decision that not everyone can make; it takes strong willpower to follow the passion and a pathway to fulfill the dreams that an entrepreneur sees for himself or herself. And so, making the right moves and being adamant into doing the needful for making the business a successful one is very necessary. Often, the budding entrepreneur thinks they can run the business without having to work on the planning and strategies of how to deal with situations and circumstances in both bad and good times.

Before, they end up taking wrong moves at the desired times. Also, financial backup is a must for every growing business because no matter how good you are flourishing in your business, there is always a chance of backfire.

Resources used in this article:

[1] https://www.forbes.com/sites/neilpatel/2015/01/16/90-of-startups-will-fail-heres-what-you-need-to-know-about-the-10/

[2] https://www.quickloansdirect.com/fast-business-loans/

[3] https://marketingwizdom.com/strategies/retention-strategies

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