Six Things You Should Never Do As An Entrepreneur
The life of the entrepreneur can be challenging at times with so many rules of engagement to abide by. With many stakeholders to satisfy at the same time, how can we make sure we are avoiding the pitfalls that comes with this journey? Here are 6 easy steps to help you take calculated risks and keep you laughing to the bank.
- Never make plans on money you do not have.
It is easy to plan ahead with projected income and revenue streams before actually securing the money. Even if it seems all is set and it is more than likely that you will receive your payment, always make sure you do not spend money you do not have. Things inevitably do go wrong and as such you need to ensure you are sufficiently protected when they do.
- Never let your emotions get the better of you.
A wrong emotional outburst has the power to potentially destroy an investor relationship or corporate strategic alliance or even lose customers. It is simply best to keep quiet than utter the wrong words to a stakeholder in your organization. As humans, we all have emotions and are subject to different forces, which dictate how we react, but in business, the wrong reaction could cost you greatly.
- Never over-promise and under-deliver.
It is important to be prudent in reporting what you can deliver rather than selling a dream. Always manage expectations, and always under-promise and over-deliver. As a new entrepreneur, there are several challenges you will face that will be outside your control like quality assurance issues and as a result, it is imperative to use the rule of “plan early, quote late, and ship early” to avoid losing credibility in the eyes of your clients and customers.
- Never create a market you can’t supply and support.
The worst thing that can happen to you as an entrepreneur is running out of products at a crucial time. It is best to manage a small market than create a bigger demand for your product, which you cannot satisfy. Always make sure you have the supply to meet the demands of the market.
- Never rely on free work.
As a rule of thumb, expect to get exactly what you paid for. People who work for free will expect to get paid soon in some way, or they may take it out in trade, to the detriment of your business. Student interns are an exception, since their primary objective should be learning rather than money.
- Never underestimate the importance of due diligence.
No matter how good a supplier or investor story sounds, it is not smart to skip the reference and credit checks. Visits in person are always recommended to check remote office and production facilities before any money is paid up front on a contract.