Common Pitfalls for New Entrepreneurs (Part 1).

Launching a company, being self-employed, and (hopefully) financially free is a dream. We fantasize about executing our visions and start putting things into motion. Before we know it, we're running so fast that we don't realize the ground is no longer under our feet and then we fall.

Here are some common pitfalls for new entrepreneurs (part 1) that can be avoided with proper planning and foresight.

open laptop with graphs and dashboard displayed in office

Being afraid to fail.

There's a difference between an entrepreneur and a Want-repreneur. Want-reprenuers fear failing. This can look one of two ways:

Constantly iterating without moving forward, waiting to achieve that "perfect" status which keeps you stuck in one place.
Not even starting.

From the OG A Cinderella Story (and Babe Ruth), "Never let the fear of striking out keep you from playing the game." Even if you fail, if you learn and move forward, it isn't failure. It's either a redirection, or a lesson. Put your ego aside and put yourself out there to get to where you want to be rather than stuck where you are. Whatever you're creating, it doesn't have to be perfect, it just needs to be just good enough. You’ll probably hit some tumbles, and that's a good thing. Steve Jobs built Apple and got kicked out, learned some things, and was then asked to come back. Failing propels us forward – as long as we don’t quit.

Not doing your research.

If you think you have a rock-solid idea and you need to share it with the world; before jumping into things, do your research. See if there are other people doing what you want to do. Study and learn from your competitors. Figure out how you’ll distinguish yourself to give you a competitive edge. Ensure there aren’t any legal barriers or market conditions that will present large obstacles between you and the launch. Ask prospective customers if they’d be interested in what you wish to provide, see if there truly is a market for it and if it would make money.

Not having a long-term vision.

Whether you create a business plan or not, having an idea of where you want your company to go will be helpful when making decisions along the way and ensuring you set up a good foundation to scale.

Thinking your target audience is "everyone."

Thinking your services or products can help everyone is a bit naïve. If you say “everyone” is your customer in an investor pitch, you probably won’t be walking away with any investments. Put together a persona or two for who exactly you’re going to tailor your efforts towards. This will help you figure out your place in the market and guide your company in a certain direction. A lot of people think that by doing this you’re decreasing your revenue potential, but instead it gives your business a brand and will attract the customers it’s meant to versus being too broad to really appeal to anyone. Whatever you’re selling, it most likely isn’t ubiquitous, so don’t make your business strategy that way either.

Not focusing on the customer.

Once you have a few personas created for who you’re targeting, make sure you strategize on how you’re going to get your services or products to said persona. Think about them not you. A lot of new entrepreneurs get really excited about the story that led them here and think that’s a compelling selling strategy. Sometimes it can be, but for the most part, you should be focused on what need you’re filling for others. It’s a lot easier to sell people something they’re already missing versus convincing them to care about you, sympathize with your story to give you money.

Not being flexible.

As you learn more and as the market shifts, you need to adapt. New opportunities will reveal themselves and others will become unavailable. Roll with it and see how creative you can get to keep moving forward.

Not having a work-life balance.

For you to show up and do your best, you need to take care of yourself. Running a company doesn't have to mean you turning into a work horse that eventually burns out. It's supposed be enable to you pursue a dream, offer autonomy, and improve others’ lives. Don't become a slave to your business. Schedule "me time" into your calendar every day so that you can meditate, go on walks, spend time with loved ones, exercise, read. Hire help. Do whatever is needed for you to be a participant in your life. Because at the end of the day, you're going to die, and your business won't be going with you. Enjoy the ride as much as you can.

Forgetting to be a leader as your company grows.

Too often we see founders in positions as stewards of companies that have outgrown their strategic know-how and people skills. They’re in leadership roles because the company was their brainchild, but they don’t know how to further scale or lead people in a way that propels the business forward while also encouraging the growth and development of their staff. To avoid this, assess where your skills lie. Ask yourself some tough questions about if you’re the right person to continue steering the ship. If you’re not, but want to be, ensure you continue to grow alongside your business; seek out executive coaching to help manage the dynamic workplace relationships, increase retention and scale.

Not seeking help when needed.

Launching and growing a business is a large endeavor. If you’d like help, reach out to me on A Fickle Life. We can go over: