Starting something new always results in butterflies in stomach syndrome. But, if one has a well-researched and thought-after plan in place, the nervousness and the risk can be cut back substantially. Same is the case with first-time entrepreneurs, or for the matter of fact, every entrepreneur. Since for most of them, it's their life earnings at stake, they take each and every step with 100 percent precaution. But, often in the midst of multitasking and facing the initial hurdles, most entrepreneurs end up making these three very common financial mistakes. Here's us, www.indianweb2.com, giving the entrepreneur community a heads up on these three financial mistakes they can avoid to jet speed on the path to success.
Being a first-time entrepreneur, one aspires to do everything by himself. They want to get involved with each and every minute detail related to the working of the startup. But, beware, this might not be smartest of the strategy. One needs to understand that they might want to multitask and do it all, but at the end, they're human too and their biggest asset is their brain. So, breathe and have confidence in your team. One needs to understand that as a pilot of the aircraft, you are the in-charge of keeping the engine running. So, focus on your main product and distribute other duties among your team. Don't consider it as an expense, but as a much needed investment.
This is a mistake that most of the first time entrepreneurs end up making and have to face serious repercussions as a result of it. Having growth on their mind, many entrepreneurs end up investing all that the startup had managed to earn in the initial period back into the business. This ends up backfiring most of the times. Hence, industry experts recommend having a short-term cash cushion that is separate from the money that is in the firm's operating accounts. Of course, reinvest in your business--but save a little for the future.
Being a first-timer in running a business, it is always beneficial to have someone you can talk to who has been through the exact journey as you. It is a widely acknowledged fact in the startup industry that mentors make a huge difference in the journey of a startup. Hence, when it comes to managing your finances, it is always advisable to take help, then thinking you can do it on your own. Of course, no doubt, you can do it on your own, but someone with prior experience in the field will help you do it better. Never be ashamed of asking for help, being a human it is only natural.
Always remember that the success of your venture won't only impact you and your future but the future of many, hence take every step with utmost research, passion and brain. Take your time in learning things and what model works best for your startup, as rushing into things has never helped anyone in the past.
1) Value Human Capital
Being a first-time entrepreneur, one aspires to do everything by himself. They want to get involved with each and every minute detail related to the working of the startup. But, beware, this might not be smartest of the strategy. One needs to understand that they might want to multitask and do it all, but at the end, they're human too and their biggest asset is their brain. So, breathe and have confidence in your team. One needs to understand that as a pilot of the aircraft, you are the in-charge of keeping the engine running. So, focus on your main product and distribute other duties among your team. Don't consider it as an expense, but as a much needed investment.
2) Going BIG, all at once
This is a mistake that most of the first time entrepreneurs end up making and have to face serious repercussions as a result of it. Having growth on their mind, many entrepreneurs end up investing all that the startup had managed to earn in the initial period back into the business. This ends up backfiring most of the times. Hence, industry experts recommend having a short-term cash cushion that is separate from the money that is in the firm's operating accounts. Of course, reinvest in your business--but save a little for the future.
3) No Financial Mentor
Being a first-timer in running a business, it is always beneficial to have someone you can talk to who has been through the exact journey as you. It is a widely acknowledged fact in the startup industry that mentors make a huge difference in the journey of a startup. Hence, when it comes to managing your finances, it is always advisable to take help, then thinking you can do it on your own. Of course, no doubt, you can do it on your own, but someone with prior experience in the field will help you do it better. Never be ashamed of asking for help, being a human it is only natural.
Always remember that the success of your venture won't only impact you and your future but the future of many, hence take every step with utmost research, passion and brain. Take your time in learning things and what model works best for your startup, as rushing into things has never helped anyone in the past.
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