Lao Tzu once said: If you do not change direction, you may end up where you are heading. And if it is the wrong direction, you need to change direction, yes? In today’s world, if you want to be successful in business or as young entrepreneurs, there is certainly a continuous ‘evolutionary’ process that we must all undertake. In other words, there are young entrepreneur mistakes an entrepreneur should avoid at all costs.
In 1940, an advertising executive named James Webb Young published a short guide titled, A Technique for Producing Ideas. Young believed the process of creative connection always occurred in five steps.
Gather new material. At first, you learn. During this stage you focus on 1) learning specific material directly related to your task and 2) learning general material by becoming fascinated with a wide range of concepts.
Thoroughly work over the materials in your mind. During this stage, you examine what you have learned by looking at the facts from different angles and experimenting with fitting various ideas together. Step away from the problem.
Next, you put the problem completely out of your mind and go do something else that excites you and energizes you. Let your idea return to you. At some point, but only after you have stopped thinking about it, your idea will come back to you with a flash of insight and renewed energy.
Shape and develop your idea based on feedback. For any idea to succeed, you must release it out into the world, submit it to criticism, and adapt it as needed. Read more: For a More Creative Brain, Follow These 5 Steps
We must practice, learn and re-learn the correct ways in order to thrive in today’s business world. As our business environment changes, we need to be able to adapt those skills to our surroundings or be left behind.
When we think about entrepreneurs, we usually think about young technologists in co-working spaces coming up with the next big smartphone app.
Yet some of the smartest innovators aren’t working with code or looking for a lucrative exit. They are working to find sustainable solutions to some of the world’s toughest problems.
Entrepreneurship in America recently hit a 40 year low, with far less business creation and new jobs coming from startups than in the past.
Productivity numbers show a similar trend, with levels today far below what they were in previous decades. Clearly, these trends are troubling signs that need to be reversed.
To many, this is surprising because we seem to see innovation all around us, from smarter smartphones to speakers that talk to us and respond to our commands.
However, the truth is that information and communication technology makes up only 6% of advanced economies. Silicon Valley can’t build the future alone.
Below are 11 entrepreneurial mistakes that today’s businessmen and women occasionally make but rarely make many times, as they are so critical to success:
Too much fear of failure
Having some fear of failure keeps you healthy. Too much fear is just the opposite. Remove fear rather than fearing mistakes to the point that you avoid or delay decisions. This is very difficult for some people to master.
Mistakes entrepreneurs should avoid … not having fun
You won’t find this mistake on many lists, because many people would not consider it a skill. We not only consider it a skill (fun doesn’t happen often without working at it!), but we consider it so fundamental to all the other skills on the list that it is our top priority.
The corollary to this skill must be mastered as well … when you dislike something, stop doing it.
Decision paralysis
No one can deny that the ability to make decisions is a core skill that every business person must possess if he or she wants to be successful. Decisions on how to proceed with marketing, funding, product production (in some cases), vendor selection, and a host of other judgments need to be made.
The key is to do your homework quickly, make the decision, and adjust as required. Of course, you should always focus on learning from mistakes.
Dislike dealing with people
It’s often said that no matter what business you’re in, you’re in the people business. How true that is!
Whether dealing with customers, vendors, investors, the press, or employees, continuously developing your abilities to deal with people can mean the difference between success and failure.
Being too conservative
Don’t settle for the ordinary or the mundane, even if it means a little controversy. Don’t be afraid of ticking someone off. Make those around you think. Too much change and adaptation are better than none or not enough.
Afraid of asking for help
Find an experienced entrepreneur-like mentor to help and guide you and don’t be afraid to ask for help. Listen to feedback from your mentor and others. Sure, you’ll get some bad inputs, but learn to filter.
Inability to innovate
Car models change every year because customers want something different. This is true in all industries. Be sure to never stop innovating on your business processes … be creative and try new ideas. Never neglect your staff in these activities.
Young entrepreneurs … inability to anticipate
Being able to project into the future and build a plan to accomplish your objectives is a skill that can take any entrepreneur far. Effective planning is what will guide your business and ultimately define what you’re all about.
The skilled business planner knows that planning is only an effective skill when combined with action, so they don’t get bogged down in planning rather plan with flexibility in mind.
Don’t exclude anticipation and strong time planning here, as, without it, little else can be planned well.
Not decisive
The Nike slogan is not just for sportswear. Stop sitting around talking about your ‘great idea’. Get out there and pursue it. As Wayne Gretzky said, ‘You miss 100 percent of the shots you don’t take’. So take your shots.
Afraid of asking for help
Find an experienced entrepreneur-like mentor to help and guide you and don’t be afraid to ask for help. Listen to feedback from your mentor and others. Sure, you’ll get some bad inputs, but learn to filter.
Little attention to time management
This includes constant email monitoring, meeting just to meet, having in-person chats when phone or Skype will work. Your time is very valuable, make the most of it.
Little focus on communication skills
If ever the term ‘last but not least’ was appropriate, this is it. The skill of communication (all forms) plays a role in the execution of all of the other skills above. If you don’t have this skill, none of the other skills will be fully developed, no matter how hard you try.
More info: Is Your Small Business Coping With Technological Change?
The bottom line
To avoid business failure, the best thing an entrepreneur can do is focus on customer trust. Most businesses today consider themselves to be trustworthy, and by yesterday’s standards, they are.
They post their prices and rates honestly, they try their best to maintain the quality and reliability of their service, they protect the security of their customers’ funds, and they do what they promise.
But even though they don’t lie or steal, the fact is that the vast majority of financial services companies still generate substantial profits by fooling customers, or by capitalizing on their mistakes, or by taking advantage of them when they simply aren’t paying attention.
That approach in today’s environment is a direct route to customer attrition. Retention and growth now entail acting in customers’ best interest.
Of course, there are other important entrepreneurial mistakes that can hurt you, but these are the key ones that most good entrepreneurs try to avoid a second time, in our opinion.
