5 Mistakes That First Time Entrepreneurs Are Prone To Making

Posted by Pierre de la Fortune on June 14, 2015 @ 12:01 a.m.

Written by Ken Sundheim

1) Below-Market Pricing

Many first-time entrepreneurs are looking for any and every way to become competitive. Some think they will get a competitive advantage by lowering their prices below market rate. However, what many entrepreneurs fail to see is that most potential customers know little-to-nothing about their business. When this is the case, a potential customer will immediately associate price with quality.

A company that offers low prices often get no revenue, no matter how much they lower prices. Low prices are associated with products that are understood as being cheap and of poor quality. The cheap get no revenue while pricier vendors consistently and quietly take business away. Vendors equate quality with price. Your lowest price should be equal to the market rate, but have the courage to price higher. You'll see the results.

2) Investing Time Searching for Venture Capital Money Universities have created entire majors and lesson plans devoted to the art of becoming an entrepreneur. Students spend years being taught and brainwashed that there is a methodical way to become successful, and many believe that with enough notes and classroom strategies, they will one day earn big money.

It's not true. Entrepreneurship is an intangible subject, and the art of owning your own business takes intuition and hard work. In taking too much time listening to venture capital firms, and glorifying a possible $50,000 - $100,000 pay-off, you will miss countless opportunities to get into the field and have a hands-on learning experience. Stop wasting time pursuing venture capitals and dive into your intended career field.

3) Skimping on Advertising, Marketing, and Exposure A tell-tale sign that an entrepreneur has not thought out their business plan is their choice to forego advertising, marketing, and exposure in order to save money. This is not the place to cut corners. Do not make cold-calls, because they annoy the customer and weaken the entrepreneur's brand. There is no ROI in hitting the phones, only embarrassment and frustration. Also, do not invest in pay per click ads. The average bounce rate on these ads (if you're lucky,) is 50%, meaning half of the people that land on your page switch to another website immediately.

A company must market themselves in a methodical way, and control their own exposure. Pay for the type of marketing and advertising that will brand your company as a competitive leader in your field. If an entrepreneur is not careful about keeping the bounce rate low, they will lose the web surfer's attention. Even worse than that, you will increase your Amex bill and lead to the demise of your company.

4) Doing Business with Friends Starting a business is not a party. A business is exactly what it sounds like - A business. The first-time entrepreneur must gain a work ethic and focus that is going to allow him/her to not only penetrate a market, but also eventually dominate it.

Every now and again, you hear about two or so friends getting rich off a dual business venture. While it sometimes works out, this route more often leads to distractions and arguments that wear friendships and do not help to build a business. Choose your colleagues wisely, and build your business through your employees. Think of your company first, and your friendships afterwards.

5) Investing in Consultative Selling Consultative selling attempts to asks the right questions, but the many annoying questions often lead to a lackluster close attempt. The fact of the matter is that most incoming prospects say they know what they want, but are typically wrong or confused. Don't sell them what they want. Sell your customers what they need, and what you can successfully give you.

The entrepreneur must view himself as an expert, one that does not only sells dreams, but honest results. Do not let your customer take control of you. Provide a set number of options (thereby creating cognitive dissonance,) and position your company as a leader in the field. Skip consultative selling, and sell your company through your own hard work. For more info please visit: http://ezinearticles.com/?5-Mistakes-That-First-Time-Entrepreneurs-Are-Prone-To-Making&id=6077606

Is this article helpful?


The best wow gold sales on Australia

The most beneficial and most durable The best wow gold sales on Australia http://www.ige.com !

Cheap True Religion

Good day! This is my 1st comment here so I just wanted to give a quick shout out and say I truly enjoy reading your blog posts. Can you recommend any other blogs/websites/forums that go over the same topics? Thanks for your time! Cheap True Religion http


Related articles: http://stomarbg.com/p.asp?sh3wh7co http://www.valetgrocery.com/p.asp?sh6xlazaz http://www.amandla.it/p.asp?shbcceu1 http://minako.com.mk/p.asp?shxcdfia http://www.sejinelect.com/p.asp?sh7iqu7bzx http://www.jmsrbgc.com/p.php?asn82


Related articles: http://www.diaokejiwang.net/p.asp?shza3lnjfh http://www.global-go.net/p.asp?shaehtkq http://www.cherrymine.com/p.asp?shvb35aezh http://www.tzs2012.com/p


Related articles: http://eruian.com/p.asp?shz3ucrdxn http://www.as-inflatable.com/p.asp?shdw0o774e http://www.eruian.com/p.asp?shg4r3zt http://ciphet.in/p.asp?shbkbhsghq http://www.olymposyachting.com/p.asp?shvelgb http://www.lyyilong88.com/p.php?


Related articles: http://www.czrunqi.com/p.asp?shutciip http://www.gxzhaozhao.com/p.asp?sh547jgt http://ghinnovation.com/p.asp?shvql7euk http://www.eletibon.com/p.asp?shfntqtdj http://golfdccard.com/p.asp?sho8x3fppk http://dragonvilleinteriors.co.


Related articles: http://www.ncyny.com/p.asp?shjavlenw8 http://www.hxweike.com/p.asp?sh6neov6 http://net-sys.co/p.asp?sh7w064wz http://www.cherrymine.com/p.asp?shehn88g http://www.premeno.com/p.asp?shn0lfw4w http://www.hbsina.net/p.php?as7eocsaic


Related articles: http://ep-silver.org/p.asp?shv6hfkl http://www.gh-zsh.com/p.asp?shvqtffg2w http://gangnam.eulji.or.kr/p.asp?shl4fz8w http://www.herodmc.com/p.asp?shgeia08i http://www.criamar.pt/p.asp?shfelbfr8 http://www.028jgtx.com/p.php?asml23


Related articles: http://www.toopao.net/p.asp?shufp52ev http://www.huayou56.com/p.asp?shi1y80hzc http://www.delongzg.com/p.asp?sh0tv41pty http://www.pxzxh.com/p.asp?sh1ehh8bo http://www.pxzxh.com/p.asp?sh7jvo1dz http://izh-stanok.ru/p.php?as0ashom


Related articles: http://www.gh-zsh.com/p.asp?shfiocws http://www.tailim.com/p.asp?shko6ulh http://u1media.com/p.asp?shebc1bl http://www.saintrose.cl/p.asp?sh2ye2a2 http://www.herodmc.com/p.asp?sh06jongi http://www.zhengpin315.net/p.php?asp2qgofx


Related articles: http://www.wanxingqy.com/p.asp?shuqlfbqt http://www.0737rl.com/p.asp?sh0prvzes2 http://www.whgeyou.com/p.asp?shw8fx50z3 http://crsc.shareproservices.com/p.asp?shad7fzfv http://www.hrbguohua.com/p.asp?shmzay6tph http://www.gaofang

Write something about this article:

Money Blitz Word of the Day

Support in kind - Contributions to the activities or running of non-profit cultural organisations (or charities generally) that are made in any form other than cash (e.g. free use of rehearsal space, uncharged advertising, printing or mailing, mentoring, donation of new or second-hand computer or other office or technical equipment). Some grantmakers will accept the inclusion of "in-kind" support as an estimated cash element of a balanced budget, even including an estimated cost applied to voluntary assistance.

Money Blitz Quote of the Day

Even if it's a little thing, do something for those who have need of a man's help, something for which you get no pay but the privilege of doing it. For, remember, you don't live in a world all your own. Your brothers are here too. -Albert Schweitzer

WatchList Quote

Major Index WatchList

EUR & USD Interactive Chart