Pro Advice

5 Mistakes New Entrepreneurs Make And How To Avoid Them

Launching and running your own business is not a task for the faint-hearted, here we discuss 5 mistakes new entrepreneurs make and how to avoid them
Yassmin Yasser 29 August 2020

Laying the first stone of your own business is not a task for the faint-hearted.

There are particular mistakes new entrepreneurs make most of the time, Vanessa Lau discusses them in the video below and tells you how to avoid them.

Skills of a Successful Entrepreneur

Leaving your 9-5 job to launch your own business is a huge step that requires a great deal of courage. 

For your entrepreneurship journey to succeed, there are a set of skills you need to develop.

Creativity

A person who decides to walk the journey of entrepreneurship is 99.9% a creative individual.

Youíre always on your toes, trying to do something discrete and innovative to grab the customersí attention.

Risk-Taking

Many people dream about a better life, but the road to building a better life is bumpy and full of struggles. Nothing is guaranteed; it requires you to be willing to take the risk and try.

Confidence: 

You have to believe in your goal and be confident that you can make it and keep your head in the game.


The key to success is to stay focused and determined at all times, and now letís jump right into the new mistakes entrepreneurs should avoid to get you all ready for your journey.

 Mistakes New Entrepreneurs Should Avoid

Mistake#1: Stealing someone elseís terms and conditions and privacy policy

ĎíThereís a fine line between inspiration and copyright infringement.íí

People pay thousands of dollars to lawyers to form their terms and conditions. If you copy and paste them, you can get accused of copyright infringement.

Hire a pro to take care of your businessí legal matters, including the terms and conditions.

Mistake#2: Going to a lawyer before going to an accountant

One of the reasons why an online business fails is bypassing an accountantís consultation and jumping straight to hiring a lawyer.

Why do you need to hire an accountant? 

The accountant determines what type of business you should do to make your business official, whether itíll be a corporation, business license, LLC, etc. They decide things based on your past employment history, your taxes, income, and goals.

The accountant and lawyer should cooperate to form the documents. These documents will dictate your businessís future.

Bypassing the accountant is a common mistake new entrepreneurs make, it leads to the appearance of errors thatíll result in you paying way more money than what youíre supposed to pay.

Mistake#3: Not Charging More for Payment Plans

When you work with clients, youíll have to set the payment options for your clients.

Clients can choose between paying in full or splitting the payment into a payment plan.

How to set the right payment plan? 

When you split up the payment, youíre going to have more transactional fees and admin fees; hence itís not wise to charge your client the same price as paying in full. Itís advisable to charge 10-15% more on the payment plans.

Besides, when your payment in full is cheaper than the payment plan, itíll give your client the incentive to choose to pay you all at once and get committed.

Mistake#4:Taking too Many Sales Calls

 Mistakes new entrepreneurs should avoid is falling victim to a scarcity mindset and not saying Ďínoíí more often.

Learn to Say No

Not all sales calls are worth it, be a bit picky; this is how to successfully start an online coaching business, freelance job, or social media content creator job.

Just because someone can pay for your services doesnít make them the ideal client. If theyíre lazy or have a bad attitude, it doesnít matter if theyíll pay ten times your serviceís price. 

Increase your standards because your time is valuable, and your experience as a service provider or freelancer or whatever you do is worth way more than the money.

Donít accept sales calls just because youíre scared

Accepting offers because youíre scared of running high and dry if you donít do so is not right.

Hopping on so many calls will do you more harm than good, why? 

Because the time you waste talking to prospects or doing work for non-ideal customers out of fear will block many opportunities, you could have had with the right customers.

Itís not only about having your hands full at all times; itís about having your hands full with the right calls.

 Picking the right calls and doing your job right attracts more customers, so youíll never run high and dry.


Mistake#5: Poor Bookkeeping

For your business to keep succeeding, you canít keep the books in a topsy turvy jumble.

Proper bookkeeping is essential to follow up with how your business is doing and calculate your taxes.

Bear in mind that taxes are applied to your net profit and not your revenue; therefore, you have to keep track of your financial status at all times to know what money you need to keep aside for the taxes.

If you have many irons in the fire running your business, you can outsource someone to do the bookkeeping for you.

Things are not going to be bright and shiny most of the journey, youíre going to fall more times than you can count, but you ought to get up and keep going. Reaching the top of the mountain is not easy, but itís so worth it.

If you know any more mistakes new entrepreneurs make, leave them in the comments for others to benefit.