28 Sep 2019, 10:00 — 4 min read
Background: Entrepreneurship is a battlefield. Startpreneurs must be prudent and learn from the mistakes of their predecessors. Bhavani M shares three common pitfalls to avoid as an entrepreneur.
Today 90% of the startups fail even before celebrating their first anniversary. Many entrepreneurs ask themselves, why an idea that seemed realistic at the time of initiation did not yield results. The answer is, in the real world the perfect market as envisaged in economics does not exist.
For a first-generation entrepreneur, starting a day is like playing a game of chess where the opponents can be in the form of vendors, buyers, statutory regulators and many more. The journey can be difficult; full of camouflaged pitfalls in the form of appealing ventures. Of all such hidden traps, here are some significant ones which can lead the enterprise to collapse before commencing the business.
Have a detailed and viable business proposal before venturing towards investors and banks. Seek the guidance of financial experts where necessary.
Market research, a notable segment of the business, is always undermined. Many a business failures take place due to lack of actual insight on the market scenario. Financial and technical skills combined cannot corner the markets without fundamental market research. Watch out for the sectoral developments and statutory reforms which can alter the game plan. Investing adequate time in understanding the market supply-chain can safeguard the business in turbulent times.
Also read: Market research: The key to building a great startup
Have a detailed and viable business proposal before venturing towards investors and banks. It is never safe to play a safe bet at the time of negotiations. Plan more than one proposal to understand diverse market scenarios. Seek the guidance of financial experts where necessary. Having a grasp on the start point to the finish line of the business will yield brownie points if you have to face a rigorous Q&A session. And always be receptive to the investor's observations.
Also read: How to write an effective business plan
Forward and backward integration must be the deciding factors for determining the location of the business. Starting a business must incorporate a plethora of elements like raw material availability, the local markets, labour resources and infrastructure. The connecting factor of these elements is logistics which can make or break the deal.
These elaborated components are a few of the determinants to be considered by entrepreneurs to sweeten the deal with investors and potential clients and begin the business journey on the right note.
Also read: 5 essential things to remember as you grow your business
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Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views, official policy or position of GlobalLinker.
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