In life, we all make mistakes, there’s no avoiding it. The only thing about making mistakes is that some are more costly than others, especially in the world of entrepreneurship. If you look at the backstories of some of the world’s most prominent entrepreneurs, you’ll see that they’ve had their fair share of business blunders but they didn’t let it stop them from achieving success… they simply dusted themselves off, learned from that mistake, and never made it again.
Whether you’re an aspiring entrepreneur or a well-established entrepreneur, you know that mistakes are common and are bound to happen but that doesn’t make them completely unavoidable. The fact that there are several entrepreneurs that have come before you who have experienced success and failure means that you can learn from their mistakes and avoid the calamity altogether.
Of course, you’re human, and you don’t know what the future holds for you and your business but you can at least take a proactive approach to success by learning from the mistakes of entrepreneurs that came before you. Take a look at the biggest mistakes all new entrepreneurs get wrong at first.
Here these are listed
Rookie Mistake 1: Not Separating Personal and Business Funds
From the moment you have it in your mind that you even want to start your own business, you need to take the necessary steps to open up a business banking account for all business transactions. If not a business account, you need to at least open a separate checking account so that all your business transactions and funds will be completely separate from your personal checking account.
In matters of liability, if a customer or client tries to sue your business for any reason, they’ll only be able to sue you for funds you have in your business account. So you won’t have to worry about losing any personal assets. You can also achieve this peace of mind by making sure you’ve chosen the right legal entity for your business as well but the number one way to avoid this type of financial headache is to keep business and personal funds separate.
Rookie Mistake 2: Underestimating the Importance of Business Insurance
When it comes to owning your own business, there are three business expenditures to not skimp out on but there’s one that lots of business owners do forego and that’s business insurance. Most business owners know the importance of obtaining business insurance but business owners who operate home-based businesses tend to look at business insurance as an unnecessary added expense… major rookie mistake!
They feel that just because their business is run from the comfort of their home that if anything happens, their homeowner’s insurance will cover it; that’s where they’re sadly mistaken. Most homeowner’s insurance policies make it very clear and will even put in bold print that they will not cover any damages incurred in the home to anything related to a home-based business.
What if a flood or fire happened in your home and destroyed all the equipment that greatly contributed to the daily operations of your business? Would you be able to pay to replace that equipment out of pocket? If your answer is no, then you need to look at your business insurance options as soon as possible.
Rookie Mistake 3: Quitting After One Mistake
As mentioned earlier, you’re going to make mistakes… you’re going to make mistakes in relationships, cooking, exercising, and everything else you encounter in life! You’re especially going to make mistakes during your entrepreneurial journey but that doesn’t mean you should give up on your entrepreneurial journey because of one mistake.
If you give up too soon, you could potentially miss out on the success you were looking for in the first place, according to lifehack.org. The Lifehack article features quotes from successful people who’ve endured failure in their careers but stuck with it long enough to finally reach the success they wanted.
Rookie Mistake 4: Trying to Do It All
As a new business owner, especially in the beginning stages, you feel like you have to do everything yourself. You feel like you have to run your business, be customer service, be the entire marketing team, and the accountant. Well, the reality of running a successful business is that you honestly can’t achieve success by yourself… you’re going to have to seek for certain areas of your business. Doing that doesn’t mean you’re giving credit away or that you can’t do it… it simply means that you need help from time to time and that’s okay. It’s definitely not anything to be ashamed of.