Describe the 10 deadly mistakes of entrepreneur?

Answer 1

Due to the limited resources, inexperienced management and lack of financial stability, small businesses suffer a mortability rate significantly higher than that of larger established businesses. Therefore, prepared yourself not to fall into any of these killing mistakes!

1. Management mistakes: poor management cause business failure - lack of leadership ability, sound judgment & knowledge to make buss work
2. Lack of experience: small business managers need to have experience in the field that they want to enter.
3. Poor financial control: requires proper financial control. Need to implement proper cash management techniques. Maintaining adequate cash flow is very crucial
4. Weak marketing efforts:to build a strong base of customers requires a sustained, creative marketing effort. Keeping them coming back requires providing them with value, quality, convenience, service and fun.
5. Failure to develop a strategic plan: many small business neglect the process of strategic planning - feel will only benefit large companies
6. Uncontrolled growth: Expansion requires major changes in org structure, buss practices such as inventory & financial procedures, personnel assignments. As buss increase in size & complexity, problems increase & has to deal with it.
7. Poor location: Often business location selected with proper investigation.
8. Improper inventory control: insufficient inventory level result in shortages & stock outs - causing customer leave
9. Incorrect pricing. Establishing prices that will generate the necessary profits means that business owner must understand how much it costs to make, market and deliver their products and services.
10. Inability to make the "Entrepreneurial Transitions". After the start-up, growth usually requires a radically different style of management, one that entrepreneurs are not necessarily good at.