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9 mistakes entrepreneurs make when they’re getting started

In this article, you will discover 9 mistakes entrepreneurs make, and you’d also learn how you can avoid them.

The Internet has enabled many individuals from different parts of the world to start their own businesses and entrepreneurial journeys online. But freshers who lack proper mentorship and guidance may really waste a lot of time and money taking the wrong actions!

While it’s really good to make your own mistakes and learn from them (it’s inevitable), learning from other entrepreneurs’ mistakes will not hurt! So, we saw we’d list a bunch of mistakes I and my mates committed earlier in our entrepreneurial journeys, and some other ones that we learned from books and blogs. Let’s get started already!

9 Mistakes Entrepreneurs make that you should avoid!

  1. Lose a dollar trying to save a dime
  2. Hiring wrong team members
  3. Lacking a high-income skill
  4. Setting small profit margin
  5. Not constantly sharpening your soft skills
  6. Relying on one source of income
  7. Underestimating the power of trading
  8. Focusing on competitors rather than customers
  9. Looking no further than your nose
9 mistakes entrepreneurs make when they’re getting started

1 – Losing a dollar trying to save a dime

This is one of the biggest (if not the biggest) mistakes you can ever make as a fresh entrepreneur.

Sticking to budgets and not wasting money on tasks you can carry out by yourself is definitely a good strategy at first. But money isn’t the currency you should be looking at; TIME is.

Think of it this way; your time is worth $20 per hour, but there are tasks that you have to do but are worth, let’s say, $3 to $7 per hour, right? But you still have to take the time to carry these basic tasks by yourself and waste a couple of hours almost every day!

This means that for two hours (roughly speaking) you’re working for $3/h. In fact, you’re not even making that $3! You are Losing $17 an hour doing some basic unnecessary stuff!

Why opt for tasks that don’t pay well when you can do something else that’s worth the time?

You can literally hire an assistant from the Philippines and s/he can carry your tasks for $2-$3 per hour! Whether you need someone to edit your podcasts, make designs for your next blog posts or social media content… etc.

Still, you have to learn how to hire the right freelancers or VAs! And that’s the second mistake you might be making!

2 – Hiring wrong team members

As we just discussed, it’s inevitable that, sometimes, you outsource some of the boring or not-so-profitable tasks to someone else.

But the issue here is: how can you find the right person who’s going to carry your tasks successfully?!

Well, you’d be super surprised how many people will apply to your job offer when you publish it on Upwork for instance! Literally, you’d get no less than 30 applicants in one single day, all of them are willing to work 6, 8, or even 10 hours a day as long as you offer them $4 or $5 per hour!

Still, too many applicants doesn’t necessarily mean they’re good, right?

So, that’s why freelancers usually have a portfolio & tens of reviews on their profiles on whatever platform they use.

Solution

9 mistakes entrepreneurs make when they’re getting started

The first thing you want to do is to decide what tasks you want to outsource, and decide how many hours per week you’d need someone to do them. Next, go to a freelancing platform, or anywhere where you can connect to employees and VAs such as LinkedIn and Indeed, and publish a job offer where you list all the tasks you’d need help with, the hourly rate, and how many hours per week.

So, let’s say you got 50 applicants for a VA job offer you published. We recommend you check all of them, ONE BY ONE but give no more than 2-3 minutes for each one.

Once done, you’d be able to shortlist 5-10 VAs who seem to be pretty promising. We prefer you tighten it to 5 or less but let’s say you got 10! It’s time to assign each one of them a very small task, and based on the task you assign them, you should be able to pick one who’d help you through the next few weeks or months!

3 – Lacking a high-income skill

One of the biggest mistakes entrepreneurs make is to try to build a business without first developing a high-income skill!

A high-income skill is simply a skill that can generate 10x more than what you need (roughly speaking). In other words, it’s an in-demand skill that people are willing to pay you a lot of money to benefit from.

When you have a high-income skill, you’re basically ready to build & nourish your business without being afraid of failure or bankruptcy. You already possess the skill to make a good living and build a new business from scratch!

So, unless you already have one, go ahead and check our article about the best high-income skills for 2022 that aren’t going anywhere in the next decade! 

4 – Setting small profit margin

Pricing products/services is in itself a skill one can learn! There are many mistakes you may make the first time you’re trying to sell something, but one of the common pricing mistakes entrepreneurs make is to set low-profit margins.

You’re joining the entrepreneurial industry so you can grant yourself and the people you love a better life. And you can’t achieve that by having low-profit margins.

While it depends on what you’re offering or selling to make a pricing strategy, it’s advisable to keep a profit margin around 15% to 30% from the overall cost (including ads, shipping, etc). That’s for low-priced products of course!

When selling high tickets, it’s advisable to play at a little lower ROI at around 10% to 18% so as to keep up with the competition!

Still, these are not magic numbers! Do some research and see what’s the best strategy to price your products/services, or simply pay your VA to do it!

5 – Not constantly sharpening your soft skills

9 mistakes entrepreneurs make when they’re getting started

No matter how tight and/or busy your schedules get, it’s always a bad idea to diminish the time you invest in developing your soft skills. It doesn’t matter if you’re learning a new language or simply improving your arguments by reading good books!

Try to AT LEAST devote 10 to 30 minutes a day to learn/ practice something related to communication. It can be as simple as making PP presentations, or as advanced as hosting an event or making an e-training!

These are some books we recommend you give a shot to in order to improve your communication skills. When purchased, we’d be making a really tiny commission to keep us producing more good content!

6 – Relying on one source of income

It doesn’t matter how much money you’re making this year if you are not using it to create multiple streams of income! Tight times knock unpredicted as we’ve just witnessed with the pandemic during the past few years. How are you going to keep up with your lifestyle with your only investment when the market is rock bottom and the IRS is waiting for its share?

Many mistakes entrepreneurs make can be forgiven; but not this one! Not prioritizing possessions over cash-cows!

Make sure you invest in anything that will either be in great demand for the next couple of decades, change people’s lives, or add value to it!

7 – Underestimating the power of trading

Hands down, if you’re not learning how to do online trading. You’re missing the opportunity of a lifetime.

When trading stocks, for instance, you’re basically possessing a percentage of a good that’s being consumed by the people! Everyone buying a good that’s owned by a company you’re investing in, you’d be making a share!

Money in the bank increases by 0.5%? And what’s the percentage of inflation? Well, you know the answer already!

So, if you learn a little about how to invest your money in safe stocks and/or manage tough cryptos or projects… Gosh, you’d be unstoppable!

We recommend investing a really small percentage of your income each month or week to test the water out and break the ice!

The godliest two trading platforms to use are:

  • Binance: you can sign up with our referral link and we’ll make 30% of the fee Binance cuts from your investments. You will not be rewarded for signing up from our link though!
  • Gate: when you use our link to signup to gate, you’ll get a 10% bonus on your first deposit & we get a 30% one-time reward.

8 – Focusing on competitors rather than customer

Have you watched any of Jeff Bezos’ interviews where the talk arises about the secret of his success with Amazon? If so, chances are you’ve heard him say something along the lines of “focusing on customer’s needs” or “customer-obsessed”.

Well, that’s exactly what you want to do! You should focus on the customer’s satisfaction more than anything else! This includes setting good prices (without sacrificing your profit margin), but it also includes seamless digital customer journeys, UX, and UI… and a lot more!

Learn all the possible ways you can build a customer-obsessed brand, and in a couple of years, you’ll be enjoying the view from a skyscraper!

9 – Looking no further than your nose

Did we just finish the former section saying a couple of years? Truth is, that was really too aspirant!

Even if you make $20k a month, and you don’t spend any dime… you still need at least 5 years to become a millionaire!

This doesn’t mean entrepreneurship and becoming a millionaire is a bad idea! NOT AT ALL.

We’re just saying it is a long term commitment that requires a lot of effort, perseverance, failing & retrying… But eventually, you’ll be rewarded.

We certainly recommend you make a daily routine and stick to it. But we also recommend you have a 90 days plan, a 1 year, 2 years, and 3 years ones.

Set reasonable goals and do whatever it takes to keep ’em going.

Of course, life is unfair to anyone (which makes it fair) so you’d certainly find yourself losing a lot of battles and drifting off to the shore rather than the deep dark greenback boogie. But an overman with the right overmentality SHOULD keep on until she/he makes it or makes it.

These are the options, better hit the road already! Good luck my friend.

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