I WAS IN BUSINESS BECAUSE…
Recently, we shared the main ideas of a video in which a successful American entrepreneur and blogger Patrick Beth-David talks about his mistakes in business. If you have not read our review – here is this material.
The comments below the video, by the way, are also excellent. Young and experienced entrepreneurs from all over the world tell sad, funny and instructive stories about their mistakes in the first years of business.
We decided to collect the most interesting of them. Perhaps some of this will save you from mistakes. Well, or it helps to come to terms with the fact that fakap are inevitable.
I am sure that success without blunders is impossible. My first mistake was to attract an uncle as an investor (he invested almost $ 100 thousand).
In four months, we had many problems – and we lost almost all of our assets. By the end of the fourth month I was introduced to a new investor.
To get an investment, I found a new partner. He was 60, and I was 24. He was very good at displaying everything in a favorable light for him. He earned $ 23 thousand, I didn’t, and I did all the work.
Frequent mistakes of novice businessmen
Before investors, however, he arranged everything as if I were hitting the business and I had to be removed from the team. He very quickly earned another $ 200 thousand.
My business was falling apart. I graduated from university, and then got into a serious accident. Soon I lost everything and on my knees begged investors to give me another chance.
A few months later, they found out what a rogue that “my partner” was and returned to me.
So here is my list of entrepreneur mistakes:
– worked with relatives (conflict of interest, different backgrounds, different expectations).
– hired the wrong people (employees without the necessary skills constantly made mistakes)
– mixed company income and personal expenses
– trusted the wrong people (as a result, they “threw me”)
– planned too much, acted too little
– tried to run several businesses in order to have different sources of income
– became director too early, although I had no experience
– did not know how to ask the right people for advice
– began to live in a big way
– did not understand the value of a business plan
– did not adhere to the schedule
– was impatient and waiting for instant results (my uncle expected to make a profit from the first month)
– took unreasonable risk
Now I am gradually restoring my business. And, to be honest, I’m glad that I made all these mistakes when I was not even 25. Thanks to these fakaps, I matured and became much stronger.
It is hardly possible to list all the mistakes that I made, but here are the most serious of them:
Being a creative person (I am a professional photographer), I did not understand that in the first place I had to be a businessman, and only then – an artist.
Do not take care of your physical and mental health (hang out a lot with the wrong people).
I was sure that I knew everything better than others. I didn’t study with anyone, did not follow the trends in my industry, rejected new ideas.
I chose bad partners. As a result, in the first year in business, I changed three, and here there were serious conflicts.
Read about how to recognize a bad business partner in our material.
Frequent mistakes of novice businessmen
The second mistake – I believed the advice that you can’t sell services until a complete product is ready. It took seven months to launch and huge investments.
At some point, I realized that the main thing in business is the influx of living money and that the product can be modified along the way.
I had to return to the very beginning, however, now my financial situation is more complicated than it was originally.
I was sure that I did not need a team. I thought that I could handle everything myself: I was a director, financier, marketer, stood at the reception …
In general, I thought that I knew everything about everything. In fact, I did not know anything.
I screwed up with the choice of a business partner, while transferring financial management to him. Only after some time I found out that he had a game addiction.
Frequent mistakes of novice businessmen 2
In the end, he devastated our score. This mistake cost me dearly, but now I am much more attentive to the choice of business partners.
My most stupid mistakes of a novice entrepreneur:
– I thought that everything would go according to my plan
– did not sign a partnership agreement and paid for it with money, time and nerve cells
– I thought that all my friends would actively support me.
My biggest mistake is impatience. And I also thought that customers would line up for me.
I sell life and health insurance. The reason for my failures in business is the belief that potential customers know as much about the product as I do.
I needed to be calmer and tell them everything in detail so that they wanted to make a purchase.