It was reported that the most common reasons of a startup to fail was financial unsustainability . many startups run out of cash and failed to raise new capital. There had been startups that spent hundreds millions in funding but was unable to raise new investments. It doesn’t happen only to one or two startups but to many startups around the world.
How to avoid common mistakes as entrepreneurs
Another common reason of why startup and businesses failed was the inability to cope with the competition. Not to mention that the competition in today’s world is much more challenging. It is because the world today is fast changing and full of unexpected disruptions. However, blaming on changes and disruptions won’t get you and your business anywhere. What best is to avoid these common entrepreneurial mistakes:
Giving up on work-life balance
Burnout is real and it is damaging both to your physical and mental well-being. However, many entrepreneurs don’t realize this and instead set an example by working nonstop hoping their employees will follow suit. Hence, it is important to not give up on work-life balance because it will help you reach your full potential. Then, encourage this culture in your company so the others can maintain work-life balance and avoid burning out which is one of the most common reasons for failure and poor performance.
Focusing on too many things at once
This is a mistake many entrepreneurs often do as well because many people love to think they can manage multiple things at once. While in reality, it is not always the best approach to take. Poor management can result in overload works and worst timing. If your company have multiple projects at once, let different manager handle different project because one cannot handle everything alone. It is also ore efficient to focus on finishing one project at a time.
Underestimating face-to-face meetings
Meetings are conducted to gather everyone responsible and discuss important matters. However, many entrepreneurs skip one-on-one meetings for various reasons such as efficiency or something. Meanwhile, one-on-one meeting is important to generate perspectives and insights for the people who hole responsibility to the growth of your business. Feedback help a lot in achieving rapport between the supervisor and employees. Hence, everyone is working toward the same goals. In addition, one-on-one meeting is a great opportunity to track the progress of the project you and your team are working.
Making wrong hiring decision
Making wrong hiring decision is one of the most common mistakes done by entrepreneurs around the world. There are various reasons behind the wrong decision making in hiring such as hiring acquaintances, underestimating the process of interviews, disregarding the importance of soft skills when hiring, etc. These all result in hiring unsuitable people to join the team. When you have poor performing staff members, you have to review the root. It is possible that the root is from wrong hiring decision from the beginning. This kind of mistakes can cost a lot to your business.