3 common mistakes that first-time entrepreneurs make

If you are considering becoming a first-time entrepreneur, it can be a period that is both exciting and scary at the same time.

You may think that blind enthusiasm will be enough to get you through the first few months, by which time you will have built up a few key clients and boosted your initial starting capital. However, customers who are slow to pay and an ultra-competitive marketplace are just a few of the factors which could see you calling in the insolvency practitioners before you’ve even got going!

Below we have looked at a few examples of some of the most common mistakes that first-time entrepreneurs make:

Failing to talk to experienced entrepreneurs

Financial advisors, the Money Advice Service and your old boss may be the people you are most likely to turn to for advice as a first-time entrepreneur. But are they really the best qualified people to help you? The most effective advice you can receive is surely from someone who has previously been in the position you are about to find yourself in. They can advise you about the pitfalls to avoid and the paths you need to take.

Starting off without enough capital

Money is highly likely to be the deciding factor regarding whether or not your business makes the grade or falls at the first hurdle. This includes the money that you start bringing in but also the amount which you are able to start off with. Failing to get things started without sufficient cash could see you pulling the plug halfway through your second pitch.

Failing to do your market research

How much competition is out there for the service which you are planning to provide? The answer to this question is likely to determine whether your first venture as an entrepreneur can be deemed a success. If you find yourself in a competitive marketplace then it is important to be very clear on what makes you stand out from the crowd. If you don’t already have an edge of some kind (whether it is as small as a commitment to customer service or as large as a brand new product), then you need to get one!

If you would like to have a free no obligation chat with one of our advisers please call us on 0207 186 1143.

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