Failure should be an accepted part of business life, because there’s a great deal to be learned from every failure, and every subsequent attempt should bring you closer to achieving your objective. Another good thing about experiencing a failure or two, is that it tends to make you more cautious and more humble in your future pursuits, and that’s generally a very good quality to have. It’s not much of an exaggeration to say that failure should be a necessary part of entrepreneurship.
Here are some of the typical failures which are associated with entrepreneurship and particularly with startup companies.
Hiring too quickly
It’s a very common mistake to make, but many small businesses hire too many people too quickly after experiencing the first flush of success. Then when sales even out or take a downturn, you find yourself over-staffed and you have to reduce your roster of employees.
Not waiting for market validation
Products can be brought to market with too much functionality, if some of those functions have not been validated on the open marketplace. It’s much better to introduce functionality incrementally, so that consumers have a chance to take advantage of available features and functions, thus validating your product in the market.
A common failure of entrepreneurship is charging too much for your products at the outset, thereby discouraging sales and limiting your company’s chances for success. Just as common is maintaining a price structure which is too high, and more than the market will bear. In either case, sales will be depressed, and so will your company.
Overdoing it on public relations
Media attention is certainly necessary for any startup company, and it’s a common misstep of entrepreneurship to want to secure as much attention as possible for a fledgling company. However, the company has to actually be ready for all that intense scrutiny by the public and by all the media outlets, before it can actually be of advantage to you. It can be far more damaging than you might think, to be unready for the glare of public scrutiny, and have that advertised to all your prospective customers.
Would business financing increase your chances for success?
If the only thing holding back your small business from achieving the kind of success you’ve dreamed about is financing, we may be able to help. Contact us at Mossberg Strategic Capital so you can work with our financial specialists on ways to obtain the financing your business needs.