7 Common Traps For Beginners

Now more and more people are thinking about starting their own business. And even open it. But far from all, everything goes smoothly. Alas, often beginners in business fall into the same traps, as they gather earlier. We decided to collect the most common of them to warn what you expect and what should be avoided at the outset of the business.

1. Absence of capital

Plunged into the mess of the early days of the start-up, beginners often forget that everything has its price. Firstly, these are all the necessary permits to start a business: constituent documents, licensing, patents, permits and other legal documents. Secondly, the starting capital for the purchase of products, rental of premises and equipment. Third, the initial amounts to pay for the work of the first employees (or consultants). All this should be envisaged before the start, even at the stage of making a decision to open a business. The exit from the situation can be personal loans, business loans, as well as loans from individuals.

2. Lack of research

The absence of a preliminary market research is another trap, which often involves beginning entrepreneurs. In this case, research should be carried out not only before the start of work, but also in the process of functioning of a commercial enterprise. Research should not only consumer preferences, but also the activities of competitors, as well as the patterns of pricing.

Traps For Beginners

3. Lack of deadlines

In the process of development and growth of business, the demands, demands and expectations of customers will also grow. Before you start a new order, you have to make sure that you have enough time and resources to do everything on the highest level and on time. Without delays, without reduced evaluation criteria, without indulgence and double standards. If you cannot complete the order perfectly, you better refuse. It’s always difficult to say “no”, but it’s better to refuse in advance than not to fulfill in time and lose reputation and client.

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4. Lack of development

The saying “You’re quiet is going on” will not be entirely correct for business. At a specific moment in time you can arrange everything, and therefore you cannot speak of any extensions, innovations, and even more risky deeds or transactions. And in vain. Because the demands of society are changing, and you need to learn not just to react quickly to them, but also to act on the lead. Only in this case your startup is expected to succeed.

5. Recruiting the wrong people

Finding a good employee is not so easy. The mistake of starting entrepreneurs in terms of recruiting lies in the fact that a person seeks to hire either acquaintances or people with small requests for wages. However, often these people do not have sufficient qualifications, thereby pulling the business down. Look for “your” people scrupulously and systematically, do not be afraid to admit mistakes and get rid of unsuitable people in time. Once you have a 100% hit, which in addition to comfort in work will bring the company a significant profit.

6. Inability to identify potential problems

Regardless of what thorough preparation you conducted before starting a business, you will still face problems. It is sometimes impossible to protect oneself from them. But to foresee – quite. It can be the emergence of a new competitor, trend or technology. Therefore, you should always be prepared to predict possible difficulties at the stage of their origin and make changes in the existing strategy to enable the business to develop continuously and without slowing down.

7. Irrational management

The most difficult point in the explanation, since it embodies in itself something that cannot be predicted, anticipated and anticipated, namely, the problem of incorrect or ineffective management. An erroneous strategy for the actions of personnel, lack of control and leadership skills on your part, etc. The most important means for struggle is to recognize the situation in time, find the strength to admit your own mistakes and take vigorous measures to eliminate the root causes of problems.

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