You are right, but anyone who wants to go into a business must be ready to take some level of risks. You may not have the money to go into the business and you have no other option that to take loan.
What are some common mistakes people make in business?
- Thread starter Passiveearner
- Start date
Never use your business income for other expenses.
One of the worst mistakes I have seen with new businesses is they fail to recognize the importance of a good sales force (even if it's only them). It's a known fact that in any business of any kind, nobody makes any money until somebody sells something. If you own the business and are the only salesman, you need to dedicate enough of your time to create enough sales to keep everyone busy if you expect to generate enough profit for success. If you decide to hire someone to do that job, pay them enough to provide motivation for them to excel. It's that simple.
Yes, this is true but I think it is one of the risks that is better not to assume from my point of view, but if you have no choice and you get profit margins even by borrowing, then there is no problem
Also, it's a competition which sometimes an entrepreneur ignores. Sometimes the cost of your product may be expensive as compared to the product of your competitor so as an entrepreneur one must check the cost of the product they are selling in the market as no one would like to buy the same product at a high price.
I agree with you, before starting a business the most important factor is knowledge about business.
One common mistake young entrepreneurs make today is going into a particular business simply cause they see others around them doing the same business, hence they invest into it without even trying to find out if the business suits them.
Probably, whenever you venture into a business because you see others doing so, you will make lots of mistakes.
Speaking from example, i have experienced this before. I joined a business because it was popular and there where lots of talks about how much profits people where making, i ended up loosing my startup capital.
That's just it. People should not be carried away by the popularity of a business. It takes enough knowledge and consistency to succeed.
I agree with you, it is necessary for every business to hire experts and talented employees.
Definitely, that is why whenever you want apply for a job they will ask you for your experience. This is because so many businesses are looking for experienced people.
