The road to success as an entrepreneur is far from smooth, and there are many pitfalls to avoid along the way. Of course, it helps to know what these pitfalls actually are so that you’re fully prepared to side-step them when the time comes. With that in mind, here’s a quick round-up of the most common pitfalls of entrepreneurship, and how to avoid making them yourself.
Many entrepreneurs will insist that a certain amount of debt is essential for starting, building, and growing a business. However, there are others that insist that starting a business using borrowed money is a recipe for disaster.
Ideally, try not to borrow more money than you know that you can afford to pay back comfortably regardless of the amount of profit that your business may or may not generate.
Neglecting to plan for the future
You might be extremely lucky with a business that takes off quickly after opening your doors. The question is, though – are you properly equipped to manage this level of success so soon after getting started? Have you put plans in place to get hold of the resources that you need and to process orders at a scale that keeps your new customers happy and coming back for more? If not, your failure could come along just as swiftly as that initial flood of success!
Focusing a great deal of your efforts on retaining customers is super important, but it’s crucial to avoid becoming overly dependent on a single income source. For instance, if a quarter of your income comes from a single customer every month, how big of a knock is it going to be for your business if that customer suddenly stops buying from you? The secret is to be sure to find a balance between nurturing existing customer relationships and building a diversified base of new customers, too.
Looking for more guidance when just starting out as a young entrepreneur? Register to earn and learn via the SA Teen Entrepreneur Online Learning Academy today!