Many young future entrepreneurs who came up with a great idea fear that once they delve into the business stuff, they’ll drown right away. We’ll tell you this → all mistakes have already been made, you’ll surely not do something outrageous that will end the world as we know it.
If you still fear the entrepreneurial path, here’s a list of common mistakes that might help you avoid some rough times. So, let’s learn from other’s experience, shall we?
1. The presentation of a 50-page business plan
Investors do not have time to read such a plan, so give them a short summary of 2-3 pages. Include the most essential information about your idea, financial forecasts for the future and the approximate budget.
2. Meeting with the whole team, but letting only one person speak
Any investor wants to see the team in its entirety, but if all members, except the manager, are silent, some potential investors would find this strange. How would they determine the competence of the team if they do not hear a word from any of them? What would be the point of gathering such a group of people?
3. Not mentioning the problem that your startup solves
What social problem does your future business solve? How important is your idea for the good of mankind? You need to explain to investors why it’s worth the money, why it’s compulsory to invest now and why it will turn into something sought for and desired by consumers.
4. Using clichés
Here are 2 examples to avoid:
- We only need 1% of the market to be successful (it’s unlikely to receive it).
- This product will sell itself (no, it will not).
Thinking in cliché phrases when launching an innovative project is the first sign of failure. Investors hear these promises from every entrepreneur, knowing full well what the truth really is. It would be better to try and demonstrate the real way of development and operation of your new product.
5. The lack of documentation about the investor and his portfolio
You can attract the sympathy of any investor if you present your product in such a way that he understands that your idea was made for him. Check on what he does, what he likes, what he invests in. Such a strategy will guarantee you time savings and more investment goals achieved.
6. The ignorance of potential business risks
Be prepared for a variety of questions. You need to clearly understand what risks your business is exposed to and what precautions you should take. If you are unable to answer uncomfortable questions or the ones about the company's potential failure, you will not be able to form a strong team and you will certainly not attract serious investors.
7. Unclear description of the product’s essence
The clear expression of thoughts indicates that the entrepreneur knows what he wants to do. You need to explain why your product is unique, while talking briefly and concisely about its key features. Too much talk leads to boredom and disinterest in your super idea, no matter how brilliant it is.
8. Lack of promotion strategy
Even if you come up with an interesting product, it does not necessarily mean that it will be successful. Be prepared for dilemmas concerning the way of selling your product, getting new customers efficiently and cheaply, using social media platforms correctly, etc.
We hope this list will help you avoid unpleasant situations and failures throughout your entrepreneur journey! Still not sure where to start from? The Bizonaire team is right here to help you!