5 Mistakes You Should Never Make as an Entrepreneur

Starting up your business in the right way determines how fluent your business will go. Most new entrepreneurs make some deadly mistakes which eventually kills their business while in a haste to make money. These are 5 mistakes you should never make...

1.  Taking a shortcut to make money

There is no shortcut for success or making money legally. Money only responds to value. The more valuable you become the more money you make. Don't fall for any get rich scheme (even the schemes from Nigerian Telecommunication Networks).

A while ago I was speaking to a friend who went into a business with a partner to sell a product. He told me that will be making about 40% of the product and he could make some millions in profit in few weeks. What a business! I was told some details about the business and I immediately discouraged him. It was too simple and through to be good but he carried ahead and eventually lost the money invested into the business. Am not saying you shouldn't engage in business activities with other people. What I am saying in for you to do some research before engaging in any business no matter how close you are to the potential business partner.

2.  Not documenting transactions

They say the faintest pen is better than the brightest of minds. During the start-up stage of a business, most entrepreneurs fail to carry out the documentation of the business. Some don't document due to their own ignorance while some fail to see the importance and get into trouble when the business fully starts.

Every transaction made in a business should be documented no matter how insignificant it can look at first. Some entrepreneurs have lost all due to failure to document a deal which eventually led to them losing the ownership business.

3.  Neglecting Insurance 

Important things that do with a business should be insured. Equipment and facilities which is the lifeline of a business should be insured. Failing to insure is insuring for failure. The cost for insuring might be expensive when starting up a business, but is saves you from future problems that can lead to the closure of the business. 

I was watching news some few days and was shown a shopping mall which got burn. A business man who running is business in the mall was interviewed was asked how much he lost; he said he lost couple of millions. I felt very sad for him, how I wish he had taken insurance more seriously, how greatly will he had reduced the cost damages caused by the fire.

4.  Ignoring Intellectual Property and Copyright

The most valuable asset in a business has moved from machines and equipment to ideas and concepts. A new idea has the potential of being more valuable than the summation of the machines currently used in that business. Filing for patent ownership and copyright on brand and products has now become a necessity for the survival of a business. There are so many thieves out there who can ruin your hard work overnight. The only way an entrepreneur can protect his/her business from those thieves is by claiming ownership of the idea legally. 

5.  Confusing Your Customers with your brand

Most newly start-up businesses confuse their customers with their brand names. Some either they use one brand name for multiple uses or they use multiple brand names for the same product. Imagine if all Apple Incorporation products were called IPhone including Ipad and iPod how absurd will that be.

Maintaining your brand is as good as maintaining your business. The way you present your brand is proportional to the way your customers will relate with your business as well as you yourself as an entrepreneur.

Talk Back

Tell us the mistakes you have made in the past while running your business. Share them with us by leaving them in the comment section below.