Entrepreneurs usually make common mistakes. Some become costly which botch your planning and management or in some case assigning a wrong employee or team member for taking on any vital project. On an elevated level, entrepreneurs can linger too long to leap into a new field or miss opportunities.
Having a wrong partner or decision maker or even board members can lead to a problem rife in business. In this chapter, you will learn about the different mistakes done by entrepreneurs and focus not to do such fault multiple times. Also, this chapter will take you to a general approach of how to forecast your company needs and plans.
Some Common Mistakes
Some of the biggest mistakes that entrepreneurs do at the very early stage of company growth are some of these below-mentioned terms and topics.
Delusional Level of Optimism
It concludes the minds of entrepreneurs that you need to scale before you need to scale. What happens if you think to hire some professional level programmers and developing the project on one single go and present the idea to market. You as an entrepreneur build the entire infrastructure and increase the scale of your business without having anything in hand as revenue or profit, or even a prototype of your product is just a blunder, entrepreneurs make usually.
Hire Mirror Image
According to some research, it is found that the usual mentality of newbie entrepreneurs and startup makers is to hire people who are of his/her type. For example, if you are management guy, you will plan to hire a management-oriented employee, if you are a geek you mainly focus on hiring geeks, if you are a salesperson, you will hire more salesperson. But through this culture of hiring, your company will lack diversity and strengths.
Entrepreneurs need a team that complements each other. It should comprise of an all-in-one team where some of them could make your idea a product, someone who can sell it, someone who can manage the team and coordinate with different customers with a different psychology.
Obsession with Control
Many entrepreneurs, specifically co-founders believe that if they own 51% of the company shares, they own it and they can control it and make active decisions. But, unfortunately, it never happens that way. Managing or leading your company to right direction do not comes with just voting or percentage of shares one is having, it's more dependent on delivering on your promises, make innovation more refine, forecast what you are planning next, and bring some brilliant business model with the calculative approach. It is much better to own a small share of a humongous company rather than own a large percentage of shares of a small company which where their product is a piece of crap. The goal of entrepreneurs is not to focus on the percentage of shares but to make the company as valuable as possible.
What Is Forecast and How It Plays an Important Role?
Forecasting helps an entrepreneur and his/her business to plan for future and act accordingly. BI (Business Intelligence) tools are used in such scenarios. Data analytics for forecasting also help the co-founders of the company to reach a conclusion on what things need to be done to achieve next goals. Forecasting techniques are required by both startups, small as well as large business owners. They give a lot of attention and concentration to stipulate at what time of constructing their sales and business forecasts.
The most popular type is the "demand forecast" which not only just map the entrepreneurs as what products the company's regular consumers are buying but also which type of products need to manufacture more, what is the next booming market and trend, which type of employees to hire and how the pricing of goods and services has to be made. The qualitative method has the "Delphi Method" and "intentions survey" techniques. In quantitative methods, the forecasting is done the by time series analysis as well as conjoint analysis.
Prediction to a certain level of percentage, after analyzing all the data can help you and your board of decision makers makes appropriate decisions. This quality of forecasting on a periodic basis is essential to becoming a successful entrepreneur.