! FOR FUTURE AND EXISTING ENTREPENUERS !

COMMON MISTAKES
EVERY ENTREPRENEUR
SHOULD AVOID

Coach AJ Jordan
CONTENT

1. COMMON MISTAKES EVERY ENTREPRENEUR SHOULD AVOID ................................................... 3

1.1 Forgetting the competition ..................................................................................................... 3
1.2 Not spending enough cash (or spending too much) ............................................................... 4
1.3. Making hiring decisions based on cost .................................................................................... 4
1.4 Thinking it’s all on you ............................................................................................................. 5
1.5 Un-achievable goals ................................................................................................................ 5
1.6 Time wastage........................................................................................................................... 5
2. 1st BONUS: Other things to watch out for ................................................................................... 7
I. Too much planning ...................................................................................................................... 7
II. Putting your product first - WRONG. Client should be no. 1 ...................................................... 7
III. Not listening to customers ...................................................................................................... 7
IV. Making Your Margins Too Small .............................................................................................. 7
V. Picking the wrong partner ........................................................................................................... 8
VI. Choosing the wrong investor .................................................................................................. 8
VII. Not making a business plan ..................................................................................................... 8
VIII. Being disorganized .................................................................................................................. 8
IX. Wasting money........................................................................................................................ 8
X. Expanding too quickly.................................................................................................................. 9
XI. Not creating a marketing plan ................................................................................................. 9
XII. Overpromising or under-delivering ......................................................................................... 9
XIII. Expecting immediate results ................................................................................................... 9
XIV. They don’t research properly .................................................................................................. 9
XV. Lack of tolerance for negative feedback and advice ............................................................. 10
XVI. Offer what you love not what people need .......................................................................... 10
3. 2nd BONUS: The right mindset ................................................................................................... 11
XVII. Trying to be perfect ................................................................................................................... 11
XVIII. Waiting too long to launch ........................................................................................................ 11
4. 3rd BONUS: Start or work correctly to not fail ........................................................................... 11
XIX. Why businesses fail ............................................................................................................... 11
XX. Starting your business correctly ............................................................................................ 11
RESOURCES ......................................................................................................................................... 13

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 1. COMMON MISTAKES EVERY ENTREPRENEUR SHOULD AVOID

A big part of starting a business is having a plan then having the discipline to act on it. Being part of a
startup isn't always glamorous, and often requires simply submitting yourself to the process.

Entrepreneurs (existing and future) are smart enough to grow their business on their own as well as
foolish enough to destroy their business on their own. It’s a matter of your attitude, how do you
keep yourself focused and consistent towards your work throughout your entrepreneurial journey.

Smart entrepreneurs are those who avoid the common mistakes made by entrepreneurs and work
efficiently in their respective domains. Being a young entrepreneur, when you step up into the
market, things usually go wrong from your end and you often make some mistakes and those
mistakes act as a hurdle in scaling up your business.

As per my experience in entrepreneurship, there are some common mistakes made by entrepreneurs
but the best entrepreneurs are those who learn from their mistakes and try not to repeat them.

The biggest mistake is not to commit a mistake, but it is not to accept your mistake. You can never
improve yourself and you can never grow if you do not accept when you are on the point of a
mistake. In the content below, I have shared the list of mistakes that entrepreneurs usually do and I
added crucial points which can help you on the way.

I would love it if you will not repeat the mistakes that many entrepreneurs have already done,
because:
 your business can succeed,
 you can be successful as entrepreneur,
 you can earn more money,
 you will be less in stress,
 you will suffer less.

1.1 Forgetting the competition

Everyone has a competitor. Everyone. Even if you think you’ve found the perfect niche and there’s no
one around to challenge you, you’re probably wrong. There are most definitely competitors in your
field that can start to take your traffic and clientele if you aren’t careful. At all times, remember that
you're not alone. Analyze the market and figure out who you’re up against, then plan and act
accordingly.

The good side of competition is that there is a market for your business solution, but you need to
monitor it, study it and, most importantly, be better than others. This can be with a certain change
(or improvement), with a complete difference (model, or a completely different approach).
Grant Cardone also says that it's better to dominate than to compete, which I agree with, but you
have to get to that position and it doesn't happen overnight.

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EXPOSED AREA: RESEARCH AND PLANNING

1.2 Not spending enough cash (or spending too much)

As a new entrepreneur, money is likely going to be a tremendous concern. Most entrepreneurs

barely have any money to spend, and those that do can often get into the “you have to spend money
to make money” mindset, which is equally destructive if left unchecked. Instead, fall somewhere in
the middle. Take into account your expenses and finances and learn to spend enough, but not too
much.

Again, planning is key here. It is necessary to keep clear records and a strategy of how, when and
where something will be spent. It is also necessary to create a scheme of priorities (I do not
complicate and I use excel for this) and traceability of events, on the basis of which the funds are
then spent.
EXPOSED AREA: PLANNING

1.3. Making hiring decisions based on cost

When funds are tight, it’s tempting to hire on the cheap. The problem with that is that in the end,
you’ll end up paying the price. Cheap employees and consultants are cheap for a reason. They may
be unskilled, inexperienced, or unreliable. Don’t pay more than your employees are worth, but know
you'll have to shell out a little extra for someone who knows what they’re doing (and be sure to do
your due diligence to make sure you're paying competitive rates). Employees are the backbone of
any endeavor so hire accordingly.

PLANNING - every employee brings some added value and everyone contributes to the success of the
company or organization. A healthy culture within the company, where employees feel good and are
wanted, greatly contributes to this. In this way, their work will be done qualitatively and efficiently.

How to properly communicate with employees:

- the employee is a person and not a machine, so each person has unique communication (we are all
different people)
- get to know your employees and listen to them
- compliments are free, so share them among employees
- studies show that praise within the company is insufficient. Think about how you act and praise
your employees
- studies show that almost half of the people for whom workplace relationships mean more than
monetary rewards
EXPOSED AREA: PLANNING

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1.4 Thinking it’s all on you

In the beginning, it’s common to think that no one can do the job as well as you can. You started out
with the idea, you know your product, you know your market, and you have the passion to take this
thing all the way home. That said, this is a recipe for burnout. Overextending yourself in the
beginning isn't sustainable in the long-run.

Also, just because you found a great niche and have a good idea doesn’t mean there aren’t other
skillsets or spheres of knowledge you’re lacking in. Take on a knowledgeable, experienced consultant
or mentor if possible. They won’t know everything and you won’t know everything, but together you
can achieve great things.

Research has already found evidence that multitasking can harm your brain and affect your
productivity. Multitasking will not make your company grow quickly or increase your profits. In fact,
it can do the opposite because you will wear yourself down by wearing too many different hats at
the same time.

If you do everything on your own YOU WILL SOON BE OVERLOADED, burnout and making wrong
decisions can happen. I've experienced burnout before, and I also know how to recognize the point
where it's only going downhill. A person's life energy is necessary, as well as the right amount of work
- balance. I'm not talking here about extraordinary days and weeks of deep, focused work, but about
constant overwork that usually leads to failure.
EXPOSED AREA: PLANNING

1.5 Un-achievable goals

One of the most common mistakes made by entrepreneurs is that they set un-achievable goals that
prove as a hurdle in their path of success. You can’t achieve something worthy if you have no goals.
This is one of the common mistakes found in entrepreneurs in today’s world. You must be disciplined
enough to set the goals.

If being an entrepreneur, you do not set the goals, you will never know who you are and what you
are supposed to do. You and your business can never progress if you do not set goals.

But there do come those entrepreneurs who do set goals but unfortunately, the goals are not
achievable and attainable. So being an entrepreneur, you must set smart goals to scale up your
business.

1.6 Time wastage

You might have heard Time is Money…

The quote ultimately means that time is one of the most valuable and profitable resources that you
can invest in your business.

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This is one of the most common mistakes made by entrepreneurs is that they do not value their time
and hence not able to grab any opportunity due to mismanagement of time.

Being an entrepreneur, not valuing your own time, and not doing smart things to do with your
money is like giving a chance to your competitors to take over you.

You must be rigid enough in regard to time if you want your business to grow more because if you
can’t value your time well, you can’t manage anything well.

Entrepreneur mission and vision

Every successful entrepreneur has story with strong missions and visions and doing smart things with
investing money in business, that’s why they have a strong grip in the market.

The mainly common mistakes made by entrepreneurs are not working with startup missions and
visions properly. They didn’t follow their right path for a successful journey according to the
entrepreneur’s mission and vision.

So keep in mind, if you do not focus entrepreneur’s mission and vision with time, so you will be not
included in the entrepreneurs list and also you don’t know about the best characteristics of
entrepreneurship.

According to my experience, this is the most common mistakes made by entrepreneurs and also this
is not a mistake but unfortunately, this is the loss of your time as well as money which was an
investment in the business.

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2. 1st BONUS: Other things to watch out for

I. Too much planning

Lack of planning is a formula for failure, but too much planning can also lead you to the same path.
Too many plans can in fact weigh you down. Instead, a good plan is always something that leads to a
decision. So how do you make a plan that leads to clear decisions? Focus on a few key themes
instead of addressing all your potential problems immediately. Strengthen what areas are already
bringing revenue to the company before moving onto minor issues.

II. Putting your product first - WRONG. Client should be no. 1

Okay, so this might not sound like a mistake, but it really is if your product or service comes at the
expense of your client or customer. They are what make you money, not the product. You can have
the most ingenious product or service in the world but if no one is buying it, what’s the point? When
creating your product and determining your business model, it’s critical that you have a customer-
first mentality. Don’t get so worried about making money that you forget the key to having a
sustainable business.

What’s the key to having a sustainable business, you ask? Well, it’s having satisfied, loyal clients or
customers who will buy over the long term. You have to keep these buyers around, and you have to
keep them satisfied. If you want to know more about how I managed to grow my business, you can
visit my blog.

III. Not listening to customers

Product reviews and feedback aren’t provided without a reason. They help you gauge which
approaches work best with your customers and which don’t. Paying attention to these helps you
improve your business and avoid approaches which do not work well with your customers. When
your customers see that you care about what they have to say, you will be able to earn their loyalty.
More so, they will become your most effective marketers.

IV. Making Your Margins Too Small

A healthy profit margin is critical to your success. Setting it too low now will make life infinitely more
difficult for you in the future. This is because you’ll eventually have to raise your prices, and then
your customers are going to be pissed. It’s better to set a realistic profit margin right off the bat. Just
scope out your production and operating costs, determine how much flexibility you have, and then
set a reasonable price to have a solid margin. Don’t be afraid of running too high at the start of
things.

It’s not easy being an entrepreneur. Mistakes are going to happen - it’s part of the process. That said,
you don’t have to repeat everyone else’s mistakes! Learn from these blunders and chart your path to
success.

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 V. Picking the wrong partner
Having business partners is common and also advisable in the world of business. But it is quite tricky
to pick the business partner who is a good fit for you and your business. Just because someone is
your friend or someone is a family member, doesn’t mean they are necessarily the right business
partner for you.

How do you even know that you picked the right business partner?

The primary step in choosing the right business partner is to understand that business partnership is
like a marriage. That means that there will be misunderstandings and fights, but they are necessary.
However, you need to realize that misunderstandings should be met logically. Therefore, it is
essential that you set the right expectations on Day 1, so that both of you know what to do.

VI. Choosing the wrong investor

Just as it is crucial to find the right partner, so it is when finding the right investor. Just because
someone has deep pockets doesn’t guarantee that they are the right fit for you. So how do you find
the right investor for you? It all starts by understanding the investment options you have. Study all
the options you have before choosing one. Second, don’t be afraid to ask what the investor can
provide for you. This will also determine how involved your investor will be in the business or project.
Lastly, make sure that your pitch will clearly articulate your vision and business plan.

VII. Not making a business plan

“Too many businesses start without a basic plan, and if you fail to plan, you are essentially planning
to fail. A startup should map out a business plan, even if it is just one page. It should include how
much it costs to operate, how much they anticipate selling, who would buy their product and why.” –
Deacon Hayes, founder, Well Kept Wallet

VIII. Being disorganized

“Being organized is key. Running a small business is like being a circus ringmaster. It’s normal to have
dozens of things happening at once. So, I have a daily task list, things that I need to do, and I list them
by their priority. It sounds simple, but it works and makes me far more productive.” – Tara Langdale-
Schmidt, founder, VuVatech

IX. Wasting money

“Handling money incorrectly and being irresponsible with cash flow is a death sentence for startups
with limited access to capital. I’ve made the mistake of hiring too many people instead of the right
people and spending money to fill the top of the funnel without having a well-defined process to
manage the bottom of the funnel. Putting good money to bad use and trying to be everything to
everyone instead of being niche-focused is a surefire way to waste valuable time and money, which
are the lifeblood to any startup.” – Thomas Aronica, founder and CEO, Biller Genie

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 X. Expanding too quickly
“When you start to see success, it can be easy to assume that growth will continue and the best way
to make the most out of it is to simply copy and paste your working formula. However, if you …
expand your business too rapidly, it could have dire consequences. You may find your period of
growth was only temporary and end up stuck with a bunch of new staff but no work and no funds to
cover them. That’s why it’s important to take a slow and steady approach to expansion and never act
on a spur of good results.” – Mark Webster, co-founder, Authority Hacker

XI. Not creating a marketing plan

“If you have successfully validated the problem, market and idea for your startup, then you need to
have a plan for how you’re going to get your first user, first 10 users, first 100 users and so on. That’s
where you need a detailed marketing strategy that encompasses the initial acquisition of users, the
conversion of those users into paying customers, and making those customers so happy with your
product that they help you get more users (through reviews, word of mouth, referrals, etc.).” – Sam
Sheppard, co-founder, Cabana

XII. Overpromising or under-delivering

“Don’t overstretch yourself in the pursuit of revenue. It is far better to tell a potential customer that
you can take on their project next month, for example, rather than take on too much. Not only will
this save you from failing to meet targets due to an increased workload, but it will also make you
look like you’re in high demand. And that’s always good.” – Zhen Tang, chief operating officer, AILaw

XIII. Expecting immediate results

Patience is the key to a successful business. 30% of the businesses do not survive because of
expecting immediate results for very little hard work. Some entrepreneurs adopt shortcuts to get big
rewards but these are the common mistakes made by entrepreneurs. Expecting immediate results
mostly disappoints you and you may lose hope.

This is one of the most common mistakes that is almost found in all entrepreneurs due to the reason
that entrepreneurs are desperate and passionate to see the rewards but you should keep in mind
that it requires patience and hard work to get fruitful results.

XIV. They don’t research properly

Successful entrepreneurs are those whose work is backed by research and this is exactly the point
which so many entrepreneurs lack and smart things to do with your money. Research not only
includes searching for the work you do. An entrepreneur must research for their target market, their
competitors (direct & indirect both) and so many other things.

Skipping the part of the research is stupidity which so many entrepreneurs do and hence end up
having an ambiguous idea.
Lack of research results in the misinterpretation of so many things so before execute your business
idea, you must research hard to check whether it is going to work or not.

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XV. Lack of tolerance for negative feedback and advice
Being an entrepreneur, if you do not shape your business according to the advice and feedback are
given by the people, then this is one of the biggest mistakes you can ever make in your
entrepreneurial journey.

Being an entrepreneur, this is your first and foremost responsibility to put people first and their
advice and feedback on top priority. Remember, there are things regarding your business that you
don’t know.
So try to consider each and every feedback given by the people and then shape your business in
accordance with that feedback because people need and love what they want not what you offer.

XVI. Offer what you love not what people need

One of the common mistakes made by entrepreneurs is that they fall in love with what they develop.
Almost 70% of startups fail in their initial years because they fall in love with their idea and do not
consider the customer demand.

Being an entrepreneur, if you do not consider the need of your target market, your business can
never grow and this is one of the most deadly mistakes that an entrepreneur makes.

When you don’t focus on what people need, you can never implement the positive strategies that
you have in your mind.

Because when people don’t consider what you are offering, it gives rise to a negative mindset. So
with a negative mindset, positive strategies are impossible to implement and with the passage of
time, you will find yourself very low in the market if you do not work according to smart things to do
with your money.

A successful entrepreneur is one who keeps changing and updating his/her idea according to the
demands of their target market.

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3. 2nd BONUS: The right mindset

XVII. Trying to be perfect

Everybody is familiar with the quote which says that nobody is perfect; this is true. Each one of us
has flaws, so do businesses; thus, it is natural to make mistakes. It is a fact of life that mistakes are
inevitable. When this happens, get up and find out what’s wrong, re-strategize, and start all over
again. What’s important is to not keep committing the same mistakes.

XVIII. Waiting too long to launch

It is easy for the scope of your project to get out of hand. However, the product you have does not
need to be perfect at first, and the additional buttons and features you painstakingly add are not
necessarily fundamental. When you get your product out there, you can get feedback easily and you
can modify your product/service along the way. Waiting too long can contribute to a loss of
momentum.

4. 3rd BONUS: Start or work correctly to not fail

XIX. Why businesses fail

Companies can fail for a number of reasons. Common causes include not securing enough business
financing, assembling an inexperienced management team and not implementing a marketing
strategy.

The COVID-19 pandemic has been an additional challenge for new business owners. Safety measures
such as face masks, hand sanitizer and plexi-glasss dividers for staff and customers can get costly.
Furthermore, at the start of the pandemic, lockdowns led to lower spending that proved challenging
for small business owners.

A 2020 study published in the journal PNAS found that 43% of small business owners temporarily
closed during the early months of the pandemic. Similarly, a 2020 Federal Reserve study reported
that roughly 200,000 establishments permanently closed during the first year of the pandemic.

XX. Starting your business correctly

A successful startup is not built by one person alone, so surround yourself with subject matter
experts and mentors you can lean on and learn from. Don’t be afraid of failure, instead, learn from
your mistakes and pivot your business model as needed. Test new ideas and acquire feedback so you
can tweak your product to better meet customers’ needs.

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Although there are several startup mistakes you’ll want to avoid while building your business,
occasional mistakes are inevitable. Don’t be too hard on yourself during the process. One of the best
things you can do is take what might first seem like bad news, learn from it and put it to good use.

One small step in the wrong direction can put you on the beginning of your path. That is painful
and time-consuming.

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RESOURCES
https://www.investopedia.com/articles/personal-finance/080615/5-skills-every-entrepreneur-needs.asp

https://careertools.binghamton.edu/blog/2022/08/30/5-skills-every-entrepreneur-needs-to-succeed/

https://www.forbes.com/sites/quora/2017/09/11/what-are-the-most-important-skills-entrepreneurs-
need/?sh=70630594106c

https://www.biznessapps.com/blog/9-skills-successful-entrepreneurs-need/

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