A revision about the Common Mistakes New Entrepreneurs Make
A revision about the Common Mistakes New Entrepreneurs Make
A large number of people who start their own business do not realize how much work and time will be involved. They fail to carry out any primary research and as a result become quickly overwhelmed.
Perhaps the first question to ask yourself then is whether you are in fact ready to start your own business. Do you have an entrepreneurial mindset? Are you committed to spend all the time you need to succeed? And are you ready to take massive action?
In a revision about the 12 Most Common Mistakes New Entrepreneurs Make & how to avoid them we would include the following aspects:
1. The first aspect we would like to enter is about the calculation of working capital needed for this new entrepreuneurship. Most of people make mistake not considering the real need of working capital for keeping the business and for keeping the family that will support this new business. Other aspect about that is most of people don't consider the nature of sales to do this calculation."
"When we talk about how much capital you need to start, the most important aspect is about working capital, not because its nature but because here it comes the most errors of planning.
Most of people don't consider the real aspects to calculate the working capital needed and frustate when money disappear. At this moment people usually go to the bank to a loan but at this moment the answer is usually NO because all the credibility you could have don't exist anymore. In summary we would attribute 60% of the failures in new business to an error in calculate working capital."
About sales, you have to consider if you sell cash or not. If you don't sell cash you have to plan who will funding your sales. If you will, you have to make a real calcultation of working capital needed to funding your sales. Most of people have working capital necessary to sell cash but sell in 10 to 24 (x), in this case, you will need 10 to 24 more money than you would have to sell cash. Easy? No way easy.
"Other aspect we would like to enter either is about the real need to sell. All companies and consequently all new entrepreneuship exist if they sell. But unfortunately most of people are not prepared to sell, i.e., they don't know how to sell in a right way."