First-time entrepreneurs and the common mistakes they make

It is easy to see why the idea of becoming an entrepreneur can be appealing. You can become your own boss, take control of the creative process and potentially use your ideas to create a successful company.

 

You may think that pure 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 a competitive marketplace are just a few of the factors which could see you calling in the insolvency practitioners earlier than expected.

 

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

 

Not getting the early funding process right

 

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.

 

Turning your back on the value of market research

 

How much competition is out there for the service which you are planning to provide? The answer to this question will go a long way towards determining whether or not you make a genuine success of your first venture. 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.

 

Failing to take tips from the experts

 

Financial advisors and previous employers 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.

 

If you would like to have a free no obligation chat with one of our advisers please call us on 0207 186 1144.

View all Business Insights