Business

The 5 Most Common Mistakes of Entrepreneurs

Choosing the life of an entrepreneur is often accept a very active life with lots of surprises. For an entrepreneur, it is important not to make too many mistakes and that all of the company’s development stages. Some mistakes are irreparable but most are not serious and will affect the contractor personally. Here are the top 5 most common mistakes of business entrepreneurs.

1) The calculation of Wrong turnover
For a business, gross revenue, net revenue, profit margin and net profit are the data which are often very important and guiding the majority of management decisions. Many entrepreneurs do not take the time to properly calculate their turnover and do the estimate without using a recognized calculation method. It is important for a company to have a concrete outcome, realistic and accurate to present the financial statements.

2) The Company does not corresponds to the Vision of the Entrepreneur
Often entrepreneurs do not take the time to prioritize their personal and professional priorities. The result of this lack is the disappointment of it when he realizes that his professional and personal needs do not match. For example, an entrepreneur wanting to spend quality time with his family will not take the decision to open his business on Saturdays. The contractor must make decisions about their needs at each stage of the business life cycle. When expectations were created by the company and that it is growing, it’s not the right time for the contractor to question his vision and personal needs.

3) Distance Oblivion and Personal Values
One of the common mistakes among current entrepreneurs is forgetting the basic values ​​that have often led to the company. Decisions contrary to the values ​​are taken to benefit the profitability of the company, its turnover or its customer relationships. The company then loses its authenticity, quality that differentiated it from its competitors in the customer’s eyes.

4) Underestimated Needs in Working Background
It is well known, a scourge that threatens SMEs is the lack of liquidity. It is also a major reason why 20% of SMEs are difficulties in their first years of operation. Entrepreneurs do not always assess the working capital needs properly and underestimated. When an event affecting cash occurs, the company simply does not have the cash to react.

5) Overestimation of the Resistance Capacity Stress
Many entrepreneurs, when the retirement age, are much more anxious and stressed than other segments of the population. Understand that stress affects as much or more the entrepreneur, and the fact that it runs its own time and often it has no boss does not eliminate it. These attributes have in fact often the opposite. The relationship with customers, suppliers and government authorities are often important sources of stress for the entrepreneur.

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