Every entrepreneur makes mistakes and these only make the business stronger. It is important to recover from such mistakes. The process of rectifying these mistakes will make the business much more robust. Confidence is a must, but too much of it may make you blind to problems. It follows that the best strategy to adopt in such a case is to do the much needed research and listening closely to what the market says. Understanding buyers is a must.
Distraction and disregarding honest advice
The first mistake almost everybody does is to disregard the advice of other people. These scraps of knowledge are dismissed as irrelevant or outdated. Although one should be abreast with the latest in technical skill, knowledge is always relevant. There is no validity date. The other most common mistake is getting distracted. You should focus on finding customers and the creation of real enterprise value. Concentration should be made on which really matters. Make only products or offer only those services which people really want and what they have no hesitation to pay for.
Funds must not be allocated to the wrong resources. Optimism is good, blind optimism is asking for suicide. You should plan for the unexpected, and if possible, prepare for the worst. When you do this, you are then much better prepared for the success which are near your grasp. It is important that you really understand the business you are in. It is vital to know the business model from the ground up. The price should be established and the unit economics must be fully understood. These involve the comprehension of margins, marketing expenses, and the cost of goods. Prices of products cannot be easily increased without the loss of customers. Comprehending the business can make it highly profitable- or smash it down to extinction.
Confidence and delegation
One big mistake many do is to do everything by themselves. It is important to delegate tasks. Professionals should be hired to make the business run and thrive. While you do that, do not allow any other person to lower your confidence level. You should trust in your own abilities. Many first generation entrepreneurs are discouraged by almost everybody they meet, from bosses to family and even friends. Do not listen to them. Chart your own path. You should always anticipate for things to go downhill. Your dedication must trump them all.