Being successful comes with its fair share of risks and rewards. As an entrepreneur, you can either reach the zenith, or collapse and hit rock bottom once you taste initial success. While some people begin successfully and take it to astronomical heights, others fall by the wayside.
Why does this happen?
This happens because entrepreneurs end up committing some mistakes that become detrimental to their businesses. If success is measured as a series of good decisions versus mistakes, the ones who fail cumulate mistakes, which outnumber the good decision.
In this article, Saeed Torbati, one of the brightest entrepreneurs in the world, shares the top five mistakes entrepreneurs should avoid making at all costs.
5 Mistakes Entrepreneurs should avoid making: The List
1. Engaging in frivolous expenditure after attaining initial success
One of the most elementary mistakes, which young entrepreneurs make, is spending their success away. They forget that the key is to follow the same habits, lifestyles, and discipline, which made them taste their initial success.
The fancy red sports car or the limited edition Swiss timepiece can always wait. The key is to focus on your business and yourself in an ethical, frugal, and disciplined manner.
2. Hanging out with the wrong set of people
You might know this but Allan Iverson, the famous basketball player burned through $300 Million Dollars and is now broke. All because he surrounded himself with the wrong people. They fed off him and left him when he went broke.
It is always important that you surround yourself with people who share the same successful life passions as you do. By being part of such a circle, you will always keep improving personally, as well as professionally.
3. Diversifying businesses too fast too soon
Successful businesses are born out of distinct niches. If you are good at tech, you do not need to start a restaurant simply because someone advised you to. The key is to stick to doing what you know best. If you have captured the pulse of the audience in a segment, stick to it.
Diversifying too far away from your specialization can drain your resources and dilute your concentration. You might have heard the old-age proverb- ‘jack of all trades, master of none.’
4. Taking uninformed risks
Being fearless is a great attribute to have as an investor. Taking risks is what leads to success. However, the key is to make a distinction between taking calculated risks and uninformed risks. This is a sign of maturity, a hallmark of successful entrepreneurs.
By following your professional ethics of informed decision-making, you stand a chance to minimize risks and losses in your business.
5. Mismanagement of time and daily routine
Do you know what the most successful people in the world wake up before everyone else? For a simple reason, that they get more time in their daily routine. Time is one essence, which unfortunately the richest amongst us cannot buy.
Everyone has to do with the same 24 hours in a day. This is why how you choose to spend your time every day is going to define you as an entrepreneur. Make use of your time by learning, innovating, keeping a healthy lifestyle, and improving yourself.
Most entrepreneurs who squander away great opportunities end up making one or many of the mistakes enumerated in the article. If you are able to avoid making these mistakes, you can ensure a professional journey driven by success and productivity for a very long period.
Can you think of some other mistakes, which entrepreneurs should avoid making at all costs? Let us know in the comments section.