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Entrepreneurs need to avoid these mistakes to build a successful Startup - Alldamoney

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Entrepreneurs need to avoid these mistakes to build a successful Startup

Persistence is the mother of good luck.When u Fall 10 times, get up 10 times and you are a success. So says Tim Sole in his book Make Success Your Friend. One hundred and one practical tips for what succeeds. Fall down six times and get up five and you have failed because you quit. Starting a business is one thing making your business work is another. Of the majority of businesses started some are good and some of them are pretty horrible.
Most mistakes entrepreneurs make in most startups is that they don’t admit their idea is not good to start with in the first time. While this is a hard-truth to admit sometimes. the idea the basis of any startup, can be the leading cause of business failure
Below is a list of Mistakes that ruins a business entrepreneurs must  avoid:

LET BUSINESS BE BUSINESS  – it is strongly advised not to go into business with close friends or family members. Mixing your business with friends, family or wrong people is a concrete business killer, but If for any reason you do, make sure you have written agreements on how the company will be managed, how profits and losses will be distributed, and how each of you will exit the company if you are required to do . Keep the relationship strictly business, totally removed from any social life put it in mind that Partnerships can be fraught with disaster especially when integrity is lacking It's important that you mix with people who share the same vision and drive as you. But generally it's best to avoid mixing your business with social life.
In a survey conducted to understand the major stumbling block to business progress. Majority of respondents listed Undercapitalization as the main reason businesses fail. Being undercapitalized could arise based on the lack of appropriate debt facilities from a bank that fails to understands the new business and its risk-reward profile. "for example in most developing countries banks require personal guarantees and real security that is typically not available in start-ups therefore making it impossible for this businesses to excel beyond their early days. However, one remedy for early cash-flow problems is to prepare well before the need arise. If u you don't have to rely on banks at the last minute. Arrange your  finance well in advance.

UNETHICAL:- By being unethical, you are honestly killing another person’s dream. As an entrepreneur it is important that you understand we are all chasing our dreams while trying to earn a living from it. After u have been in business for some time u will come to understand that while being unethical will give u the shortcut at the short run. Being unethical in business means that you are taking the benefit of short-term earnings and consequently setting alight the long-term sustainability of the business. Let’s say that you are manipulating, or deceiving a customer to make a sell.
Remember that Negative words spread faster than positive words. If you choose to belittle the customer, or your supplier, or any other stakeholder, it will come and bite you in the ass which could  lead   to sales lose  if care is  not taken and most times the result is bankruptcy in business.

CHANGE :- A simple illustration of what happens when you neglect change is the case of  Blockbuster that massive movie rental shops situated all around the UK and America who went bankrupt on the 16th December 2013. If change is neglected the result will most likely be to close doors and cease business.  Blockbuster saw their market moving into the online movie streaming companies such as Netflix, but they didn't change their business model to accompany the new consumer trend. Resulting to a continuous loss of market share over the years and  No market means no sale and no sales mean no cash to run the business. If  they had  accommodated the new trend, they could afford to use their experience in this sector to their advantage even against their competitor .in order to survive all most every business will require change in their business model to accommodate the current trend in order to survive

FLEXIBILITY: An entrepreneur needs to be flexible when it comes to running a startup. A good example is Kongō Gumi a temple construction company of over 1428.During WWII when the temple construction market suffered, the business switched to mass production of coffins. This is a fascinating story of the oldest businesses in the world . It is said that the key to their long term survival was their flexibility, and their ability to manipulate the market in which the operate in.

 Finally,it’s important to remember that while success is often found between tiredness and exhaustion, Laziness on the other hand is the habit of resting before you become tired. Don’t give up your goal if there is something you could have tried but did not, then you gave up too soon. In life be persistent because persistence is the mother of good luck. With determination and self-discipline your goals are three quarters achieved. In the game of life, the score at half time does not matter.

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