Common Mistakes to Avoid
Many people fail to really give their entrepreneurial ideas a go because they focus on the many things that could wrong along the way. Don’t let the worries about “messing up” stop you—mistakes are inherent in doing something that’s never been done before. To help yourself along the way, take a look at these common mistakes, in order to steer clear of some obvious landmines.
Having Conflicts of Interest
Many people get the idea for their new business while employed by someone else. Remember that you can’t start a competing business to the place where you’re employed—that’s sufficient grounds for a lawsuit. Also, even if you (or your employees) no longer work for that old business, you’re still not legally allowed to use any of the trade secrets you learned at that job in your new company.
Forgetting About Customer Service
New entrepreneurs often pour their life blood into the development of their product, to make it the best possible thing it could be. As recent firms like Zappos attest, however, it’s not necessarily what you do that will make you the king of your industry, it’s how you do it. Don’t forget to focus on the customer and create clear customer service goals.
Doing Too Little Market Research
In some instances, there may be no doubt that your idea or product is an improvement upon the old way of doing things. But, if there’s not a big enough market that appreciates your idea, it will be exceedingly difficult to turn your idea into income. Check out many market research surveys and take a cold hard look at the competition, before jumping in full force.
Waiting Too Long to Incorporate
Avoid The Social Network syndrome, a.k.a. “forgotten founder” syndrome, by incorporating your business early on and assigning shares to all significantly involved parties. If other founders want to leave the company, they’re free to do so—once they relinquish their shares, of course. This can keep old “partners” with a potentially inflated sense of their importance in the company’s founding from magically reappearing again once you’re making a profit.
Remaining Wedded to a Single Idea
It’s good to believe in your ideas, even in the face of adversity. There can be times, however, when your business has gotten some momentum, and other feasible and enticing directions may arise. Don’t be afraid to follow these new ideas just because they aren’t what you initially envisioned. Often the best businesses result from a sound idea that gets taken in an unanticipated direction.
Sources:
Top 10 Mistakes Entrepreneurs Make. (2011) Tuck School of Business at Dartmouth.
Top 10 Legal Mistakes Made By Entrepreneurs. (2003) Harvard Business School.