5 Common mistakes that entrepreneurs make
When talking about entrepreneurship, we mainly focus on the qualities that people should have in order to start their own business, however, we need to take into consideration the reasons why so many start-ups fail. More than half of all the new companies in Mexico and the USA fail within their first year. Here you’ll find 5 common mistakes that entrepreneurs make:
1. Complicating the business plan
When it comes to your business plan you want to keep it simple and as automated as possible. Believe it or not, it is harder and takes more time to make a simple straight-to-point plan than it is to make a step-by-step 100-page-long plan. Know your market, know your product and keep your guard up for any trends, new competitors, or any changes in the environment and have a consistent plan.
2. Having the wrong people around you
Your team is one of the fundamental parts of the success of a new business. Having the wrong people can kill a business before it even starts growing, to avoid this mistake, put out a detailed job description before you hire anyone. Once you have candidates, make sure to ask the right questions in the interview to know how they handle teamwork and new challenges.
3. Not having emergency savings
As an entrepreneur having savings is a MOST. You never know when you will get the return on your investment and start making profits. Also, there are many things that an entrepreneur needs to be prepared for like natural disasters, recessions, sporadic changes in the environment, etc.
4. Not having insurance
As said before, you need to have some savings but in order for those savings to last, it is ideal to invest in insurance for your business. It will help to protect your investment, your employees, and your customers from many daily risks they might be under.
5. Ineffective marketing
The marketing efforts have to be directed to the right people. Your marketing strategy has to be specific to your product, customers, and environment so you can have growth and knowledge on how to keep your customers happy enough that they continue to bring more customers through referrals, online reviews, and word-of-mouth.
Have any questions? Contact us! Don’t wait any longer, protect your investment and patrimony today. At AIR Insurance, we are ready to help you at any time and build a custom policy that fits your business needs with our “360º Insurance Guidance”. For more information, call +52 55 4444 6043 or send us an email at info@air.com.mx
The information in this article is subject to terms and conditions applicable to the time of writing. If you have any questions about the current applicability of this information, please contact an AIR Insurance Brokers advisor.
