An entrepreneur is also prone to make mistakes in running his or her venture. After all, he or she is human. But making mistakes in business can prove to be an expensive affair. Lot of money is involved.
Organizing a business venture requires skills and talent to ensure that profits flow in easily. A businessman or woman requires a sharp mind, willing to take risks and intelligent enough to ensure that his or her product is sale able in the market to fetch high money returns.
Business is not always a smooth affair. Ups and downs are there. An entrepreneur at times makes mistakes, which can cost him or her lot, monetary wise. Let us observe what these mistakes are:
- Using business money for personal works. This must be avoided at all costs. Many times, entrepreneurs are in need of money for personal use. And borrow this amount from the amount set aside for business .Such habits can lead to losses. One must be strict in money matters.
- Bad staff relations – Often a businessman or woman fails to meet up to the expectations of a staff member. The staff has to be taken care of in terms of good salary and other work-related benefits. An unhappy staff cannot perform well. Many times, an entrepreneur fails to appreciate the sentiments of his or staff and does not share his or her profits with them. In fact, they may be even treated badly.
- Wrong investment – Although this is rare, at times an entrepreneur fails to make the right investment. His or products may not be very saleable in the market. The competition may be so stiff that his or product may not be of superior enough to face up to the competition. His or calculation may not be right. Small ventures face this problem often as they are unable to compete with the larger establishments. The latter have more money, technology and manpower to run their business successfully.
- Selection of staff member may not be right – A business may fail if their staffs are not productive. Often the employer may not select the right candidates for his or her work. They may be lacking in skills and education. Perhaps the employer wants to pay less and may compromise on quality. Such decisions affect profits.
- Not adopting new technology – A businessman or woman may fail to adopt new technology either due to lack of funds or sheer lack of initiative. This would also lower the profit level.
An entrepreneur also tends to make mistakes while running his or her business. The mistakes can prove to be very expensive.