Being an entrepreneur is the next big thing in an economy. His deeds and actions cast crucial impact on his employees. For us, one mistake is pardonable but for an entrepreneur each step is as crucial like testing a nuclear bomb.
A mere mistake may make strident impact on his career, may be a lesson for the budding entrepreneur. Right now, I am working in a top-notch mobile app development company where at each moment technology turns obsolete. Thus making a right decision is mandatory. This article is not intended to make an entrepreneur intimidated but act cautiously when you are bearing heavy responsibility of a company.
Can’t maintain the fine line of distinction: Confidence and over-confidence
Although confidence is more likely taken by the competitors somewhat arrogant. But confidence ensures making good decisions, results positive attitude, encouraging to go on even after failure, essential to be an effective leader etc. whereas overconfidence creates a state of mind where possible dimensions are underestimated by the entrepreneurs since they overestimate their potential to deal with those that can come unpredictably.
Self-esteem must not be compromised but when it comes with the business idea. At this point, entrepreneurs are pretty much sentimental that they even overlook how he or she can actually implement those business ideas. So, in this context an entrepreneur must mind the difference between confidence and over-confidence by being flexible. He or she must be opportunistic in order to maintain the business for long run survival the moment individual gains more market intelligence. This is equally substantial handling technology like mobile apps where concepts turn volatile each moment passed by.
Unable to build strong legal structure
Although the fortune of a company is always at stake if legal structure is avoided. There are various legal documents which must be maintained by the entrepreneur in order to avoid legal battles like:
- Article of Incorporation
- Intellectual Property Assignment Agreement
- Non-Disclosure Agreements
- Employee Contracts
- Offer letters
- Shareholder’s agreements
These are some documents which must be maintained for the sake of bond and cordial relationship not only with cofounders but with shareholders and employees as well.
Setting unrealistic expectations
Entrepreneurs are more likely croaked down while playing with optimistic eyes and singular goal in order to change the ecosystem. And when reality actually strikes the ecosystem, opportunities seem to diminish which is one of the blunders where more than 90 percent entrepreneurs fail to persist for a longer period of time. It is the lack of motivation that can certainly destroy companies. This is not restricted to the business idea but failed to chalk out funding sources, overestimating the market etc.
So, to avoid this situation understand that getting funded is pretty much time-consuming, bigger jumps must be avoided, market size must be checked on a regular basis etc.
Lack to understanding proper cash flow management
As far as cash flow management is concerned, it can be only understood if the entrepreneur is exposed to work in any business operations. It is quite essential to maintain favourable outlook while responding to the feedback by experts. These feedbacks must be taken very seriously in order to gain relative competitive advantage. So, a proper business plan must be chalked out with flexibility.
While a business plan can be included with prevailing marketing strategies but it all spins around the intellectual property which must be safeguarded.
Adaptability is one of the key to stay intact while considering entrepreneurship. It is like a strength where adaptation and commitment acts like a complementary concepts which depends on different time period and situations. But over-adaptability on the other hand, increases the chances of number of commitments which generates rising tendencies not to get those fulfilled.
At some point of time there is equal vulnerability to lose the identity. Like rigidity, excessive adaptability is equally bad for health of venture.
Unable chalk out direct competitors
Knowing who are the potential competitors are and what are they offering can help to make proper services as well as intuitive marketing strategy in order to stand out. This will even help to set the price competitively where an individual can also take the advantage of competitors’ weaknesses as well as strengths. If fail to perceive the potential competitors, they are vulnerable to get out of the competition and in the long run can exit from the industry.
Ignoring modern methods of marketing
Marketing is considered to be the primary way to generate customers and is entirety conveying to the potential customers that how they are worth their dollar bills. Although traditional methods of marketing is equally significant but sometime they fail to realise the ultimate importance of social media to carry out the modern approach of marketing. This cause the entrepreneur not to even reach break-even point.
This hampers to establish and build reputation amongst the younger generation which will certainly determine the exit from the competition.
Even giants are some point needed to raise their prices. But raising the prices abruptly may spell to ruin the so called “entrepreneurship”. Although as far as real world is concerned, some circumstance may postulates price rise. But it must be done after conducting some steps that can maintain trust without hampering the brand.
- Comprehensive research
- Raising the price with additional services
- Identifying different segment of customer base
Like we are dealing with mobile app Development Company, there are different parameters at which the cost of mobile app development depends. So, in this stiff competition, everything will certainly be killed if prices are failed to perceive the actual competitive ecosystem.
Entrepreneurship is not a piece of cake which starts and ends commanding the employees. Mind it, he is the person who is responsible to carry out the salaries to its potential employees and giving good returns to its investors. So, the blunders will not only ruin the fortune of the company but may set bad examples for the budding entrepreneurs as well. So, these blunders must be taken care of, so that this slice of cake can be returned back to its employees as well as investors as well.