37 of the Biggest Mistakes That Beginner Entrepreneurs Always Make

In the complicated and often shifting business world, entrepreneurs need experienced decision making and a lucrative mindset. While this drive to succeed is enough for most, there’s no denying that there are some tools to the trade that are only really gained by time in the field. So let’s give some of these beginners a head start, by going over 37 of the biggest mistakes that beginner entrepreneurs always make.

For any business, the ability for clients or consumers to contact the business itself is absolutely essential. For up and coming businesses, however, it’s close to impossible to operate without it. An email address, specifically for the purposes of the business, is an excellent and efficient way to meet this end, considering how simple and quick they are to create.

For recently created businesses that don’t have an established reputation to fall back on, the creation of a website is an accessible way to quickly create an air of professionalism. Additionally, a business website serves as a the company’s hub for potential clients, offering services such as communication, information, and potentially even options for purchases.

While many are skeptical about the opportunities that social media may provide, there’s no denying that the sheer quantity of traffic it could offer for your business is colossal. People go to social media for many reasons, with a prominent one among them being for fun. That positivity, mixed with repeated exposure to a brand, creates a mental association between your business and positivity, over time. Even without this mental link, denying the opportunity for continued exposure that social media provides, depending on the business, could just be limiting potential clients.

We all complain about how logos these days are becoming more and more simplified, but there’s some well-formulated business-psychology that goes into those decisions. The importance of effectively communicated brand image, common color and shape association, and memorability cannot be understated, especially for newer businesses. The human brain excels at pattern recognition, and these associations can pervade throughout every facet of people’s lives, making your business unforgettable to the largest possible amount of people.

Though the creation of established revenue streams definitely should not be put off for too long, serious discussion regarding future plans, scalability, or internal growth can often take priority. Without clear direction as to where a business should go in the future, there’s all too much potential for stagnation, or worse, permanent suspension.

Many novice entrepreneurs often neglect to create a phone number specifically for their businesses, with varying consequences. At best, this practice results in the necessity for the utilization of a personal phone number, which clutters the process of client communication, a process that practically requires clarity. At worst, the business has to operate without a phone number at all, which is basically the business equivalent of getting left on a deserted island.

At first glance, a bookkeeping system may seem irrelevant or even unnecessary. After all, a business is a business, not a library. Still, a consolidated place to store the files of clients or other relevant information should not be overlooked. There’s a sense of security that comes with keeping materials in one coordinated place, as misplacing certain documents could be devastating for any business.

In any context, brand awareness is utterly essential. Still, there are right and wrong ways of achieving this goal. For one, notoriety at the cost of a controversial reputation may not be desirable for businesses that don’t have established and reliable revenue streams set up yet. There’s a limit to the statement “All publicity is good publicity”. Business leaders should always go through the trouble of creating a plan for how they want to get their business out there.

As far as numbers go, almost 50% of businesses fail in under five years. While this can be due to many different factors, a centralizing cause is often the lack of value proposition, or goal. Many people start businesses for the vague purpose of “Making money”, but in reality, a business’s purpose should be far more refined. Work first on refining the business’ place in society, by prioritizing solving real problems for real people, and the money will come.

It’s fully possible for any inexperienced business owner to correctly assemble every facet of their business and still experience failure, and often times, this is a result of poor networking. An established network of fellow businessmen does wonders for boosting a business’ adaptability, which in turn allows the operating entrepreneur to weather whatever storm is thrown at them. While this sounds like a nice goal, reaching it requires attending network events, exchanging information with fellow entrepreneurs, and continually maintaining various business relationships.

Rising entrepreneurs, though hardly lacking in ambition, must quickly find a way to make up for their lack of experience. Many simply forego acting on these concerns, and as a result, their businesses often either suffer or fail entirely. Some experienced entrepreneurs have taken notice of these needs, and as a result, offer their services as consultants for less experienced businessmen. In many cases, the short fee that comes with hiring a business consultant is more than made up for by the long-term stability that their advice provides.

In the fast paced business world, one important question is often robbed of the consideration that it deserves. Are other people already offering the services of this business in a more efficient way than we’re able to provide? Of course, many business models will always overlap, but that’s why entrepreneurs make it a point to differentiate themselves from the competition. Rising entrepreneurs need to take these thoughts into account in order to maximize and stabilize their profit sources.

For many larger businesses or corporations, a bad review means next to nothing, as the sheer amount of good reviews will always be able to balance it out. Still, that’s not to say that these words go unignored, as any company will always look at ways to stay ahead of the curve, and paying attention to customer feedback is one of the most direct ways of doing it. For smaller businesses that are still trying to find their footing, altering their business practice to better suit customer needs is absolutely essential.

In any aspect of life, confidence is king. With this idea comes several others. To succeed, there must be clarity, purpose, and clearly communicated direction, and all of these ideas come together to form what’s known as brand identity. Many customers look at more than just the simple services that the business provides. They also make it a point to look at the values, environmental impact, or even political stance. Many entrepreneurs should take all aspects of their public image into account if they want to establish a strong brand identity.

As humorous as something so small and particular can be at a glance, there’s actually a degree of importance that comes with a business card. See, business cards are likely the first view of a business that potential clients will ever see, and good first impressions are absolutely crucial. A well designed business card not only consists of quality material, but effective and eye catching imagery that clearly conveys the identity of the brand, without coming across as too cluttered.

Keeping on the theme of first impressions, the “Elevator pitch”, or a prepared excerpt about the business’ appeal to new clients that’s capable of being condensed to an elevator ride (Hence the name) is quite important in a pinch. Public speaking is no joke, and neither is performance anxiety. For those that fully understand what needs to be said, but struggle with the active communication of it, a prepared speech regarding the intentions of the business can be a lifesaver.

As the old adage goes, there are “Book smarts” and “Street smarts”. Both are necessary when it comes to business, as a lack of book smarts leaves entrepreneurs unprepared, and a lack of street smarts leaves entrepreneurs unprotected. Carefully constructed business practice often comes with the intellectual property of the person or group who started the business. For many entrepreneurs that lack the “Street smarts” that often comes with experience, it’s often crucial to secure any intellectual property that distinguishes their businesses from competitors. When these processes are ignored, there’s nothing stopping the competitors from evening the playing field by taking these unprotected ideas for themselves.

Maintaining a business relationship with many different members of a network is far more nuanced than simply grabbing a coffee every few months. To truly take advantage of a network, action is required, and this means putting in the work to understand how verbal agreements are transformed into written contracts.

A business often starts with an idea, but realistically, actual tangible progress is required to solidify a successful entrepreneurial endeavor. Many businesses can’t succeed in making it off the ground because they fail to secure competent infrastructure. Many partnerships are abandoned by businesses that don’t believe their potential teammates have professional framework. Proficient internal restructuring is absolutely crucial for businesses that want to stay ahead of the curve

Choosing a good location for a brick-and-mortar location for a business is a multi-faceted process that has much to consider. Competitor locations, ease of public access, and even parking lot size are all factors that business owners must take into account if their company is to thrive. Additionally, it may even be better for some businesses to forego a physical location entirely, in today’s internet-based era of interconnectivity and easy shipping.

One of the best tools for any rising business is a kind word and a cheerful smile. Many clients are actually willing to forego cheaper products for higher quality and more convenient service. In this era of apathetic cashiers, uninterested business conduct, and those frankly infuriating multi-hour customer service phone calls, a refined customer service experience is practically essential for up and coming entrepreneurs.

A network of fellow businessmen is useless if it isn’t carefully and continuously maintained. A lot of starting entrepreneurs rely too much on motivation, which fluctuates depending on the individual’s mood. If a network is at the mercy of fluctuating motivation, there’s no assurance that it will be properly maintained. Instead, self control should be the driving factor behind many of these initial business decisions, as a rigid and continuously supported mindset is perfect for the maintenance of a network.

For those who aren’t familiar with the term, a professional headshot is a simple picture, typically framed from the shoulder up, that serves to capture your image in a professional light. In the business world, appearances are everything, and something as small as the ability to quickly and concisely display a professional rendering of yourself can be understatedly important.

No matter what field an entrepreneur specializes in, failure to stay up to date with current methods or trends will only result in a disadvantage. In every area of expertise, processes and dynamics are evolving and becoming more efficient, and these changes are best captured during large-scale conferences that pertain to the subject matter. For many entrepreneurs, it may be worth it to take a few days off to prioritize greater success in the future.

For many small businesses, every piece of the puzzle is crucial to preserving the entire image. While this vague idea can be somewhat inspiring, there’s an air of importance that comes with it as well. For smaller puzzles, if an individual piece isn’t displaying the business image properly, it’s easier to notice. Though many small businesses scramble to find as many employees as possible at first, it’s important to never sacrifice quality on the search for quantity.

There’s an old saying that urges people to “Never put your eggs in one basket”, but this applies to more than personal banking. Businesses are very little without their profit sources, but that doesn’t mean to move forward blindly. A business is a lot like a table, and the more legs a table has, the more likely it will stand when an individual leg is knocked out.

If the point of advertising is to get your brand image into the minds of the greatest amount of people, then neglecting a large facet of this traffic is, at best, counterproductive. Tried and true marketing methods, like signs, billboards, or fliers, while proven to be effective, are only one side of the coin. In this age of digital reliance, having your foot in the door could be the final push you need to bring your brand into the spotlight.

The technological aspect of business is becoming more and more prominent, to the point where a noticeable lack in this field could be detrimental. In a world where public image is everything, and is becoming increasingly swayed by technological aptitude, taking the pains to create a robust technical experience is more than worth it. Whether it’s website image or a seamless payment process, these aspects of business life should never be ignored.

As we’ve covered previously, public image is everything. In particular, people need a strongly defined value system to align themselves with. The best way to communicate such ideas is through a short slogan, or mission statement. Though it may seem small, a quick and snappy theme does wonders for coordinating the masses to join your side.

When businesses are just starting out, it can be difficult to differentiate their products or services from the competition in any meaningful ways. An effective way of combating this is to create various loyalty programs that offer meaningful benefits to long-term customers. Though there is a small portion of funding that has to be allocated away from profit for this system to work, the increase in clients is typically more than worth the effort.

Continuous learning is the responsibility of any entrepreneur, and especially business owner, who wishes to continuously attain success. As we’ve established earlier, staying up to date with industry standards is one of the largest and most important methods of reaching this end, though many others also deserve attention. Continued improvement of economic and leadership understanding, in addition to organizational skills, are quite important for those who wish to stay ahead of the curve.

Key performance indicators (or KPIs for short), though sounding initially complex, are actually quite simple. A business’s performance is typically directly correlated to its profit earnings, and an indicator of such performance can be almost anything! Notable examples include customer response or product quality, but really, any related factor is worth consideration.

SEO (Search Engine Optimization) is absolutely vital for a business’ success in an environment where many people spend a large bulk of their time online. Sometimes, simply getting your name onto a website homepage isn’t enough. Making sure your website is quick to pop up in search recommendations is important, but repeated exposure through social media is of equal imperative.

A referral program is similar to a loyalty program, but in many cases, it can actually be more advantageous for the business on a financial level. It works by offering various incentives, like cut-costs or free products, in return for introducing other people to the business. For customers, these deals result in savings, and for the business, it results in a greater amount of customers. It’s a win-win!

Realistically, no business is able to account for every bad possibility, but that doesn’t mean that business owners shouldn’t try to prepare for the ones that they can. Many businesses have been forced to file for bankruptcy on account of revenue stream collapse or other similar crises, with no way to climb out of that pit. A vague plan of what to do in similar circumstances can help to maintain some degree of control, as well as ensuring there’s no drastic overcompensation in the event of a false alarm.

While customer feedback is certainly of paramount importance, it does very little to provide information on how internal structure can be improved. For prospects as to how this business infrastructure can be improved, it may be important to send out surveys amongst the employees of the business, as their firsthand perspective is one of the best qualified to share their voice.

A commonly neglected, but nonetheless important aspect of business life has to do with morale. While many business owners take great pains to ensure the morale of their employees, their mental health can be left behind in the dust! Organizing events or even just taking a breather to process the business’ accomplishments can go a long way to promote stability on all fronts.

Though these tips may serve as a valuable head start, the real learning starts once you close the book. Hypothetically, even if a new and green entrepreneur was given the best instruction possible, there’s still too many opportunities for failure to avoid. This fact should never be used as a reason to stop trying, however. The more failure you experience, the greater the learning you’ll receive, and at the end of it all, your successes will also be that much greater.