Entrepreneurship and business formation involve taking risks and inevitably mistakes are made. Some mistakes are so common that entrepreneurs who have some experience under their belt can help young entrepreneurs avoid some time-consuming errors. The previous post began to discuss an article by Alex Taussig that appeared online in CNN Money that lists 15 mistakes that are commonly made by young entrepreneurs, but he believes could be avoided.
The last post touched on a few tips involving developing a good story to tell about your business and practicing your pitch to investors. If you get the story right, you can get the right people on your side. It also is important to know your customers.
Taussig recommends that if you begin your business plan while in college, to avoid getting trapped in the “college bubble,” or thinking that the world is like college and all customers like college students. Taussig points out that Facebook began when Zuckerberg was in college, but he had goals for all of humanity to become his customers.
Young entrepreneurs should make a point to talk to and know potential customers early on. If customers have input into the business or product you are developing, it will more likely become something they will want to spend their money on.
Along similar lines, you should know your competition. If there are hundreds of other businesses offering the same thing to your potential customers, maybe you want to find a more original idea or more unique offering. And remember that not only are similar businesses your competition, but anything that competes for your potential customer’s attention.
15 mistakes young entrepreneurs make, but don’t have to (CNN Money)