Five Fundamental Mistakes Entrepreneurs Make When Building a Business (And How to Fix Them)

Five Fundamental Mistakes Entrepreneurs Make When Building a Business (And How to Fix Them)

Making and recovering from mistakes is part of every entrepreneur's journey. However, if you can avoid some common mistakes and learn from the experience of others, why not do so?

Victoria Downing, President of Remodelers Advantage, and Adi Klevit, CEO of Business Success Consulting Group, discussed this in their recent podcast interview. Both executives are entrepreneurs in their own right, and they have spent years working with entrepreneurs and helping them grow their companies while also expanding their own businesses.

Five Fundamental Mistakes Entrepreneurs Make When Building a Business (And How to Fix Them)

1. Failing to monitor and manage finances.

Use your financial numbers to inform what is next for your business. By utilizing common financial tools like a budget and profit/loss analysis, you can see how your business is doing and where it will go if it continues on its current trajectory. This information can tell you whether to pivot or continue along an existing path.

2. Not doing what they say they will do.

How often have you gotten busy, missed a meeting, or failed to do something because you were sidetracked? If an entrepreneur makes a habit of being unreliable, their business is more likely to be unreliable as well. Make it a habit to do what you say you will do. For example, if you say you will have a weekly meeting to review business finances, set a date and time, schedule a calendar reminder, and have that meeting.

3. An inability to delegate.

In order to grow a business, the business owner must delegate tasks to their employees. If the owner wants to retain complete control of every aspect of their company, they have effectively limited the company's ability to grow. Set yourself up for successful delegation by following the advice in one or all of the many articles we've written on this topic. You can read more here, here, and here.

4. Getting stagnant or stuck in their ways.

Entrepreneurs and business owners must stay up-to-date and educated on their industry, the business world, and new technologies to continue building a business that will compete in their chosen field. If they grow stagnant, their business will also likely grow stagnant, and clients may jump ship for a new company that utilizes the latest technologies.

Some ways to avoid growing stagnant include: 

  • Intentionally continue your education.
  • Consult with experts.
  • Learn from your peer group.
  • Read educational articles.
  • Attend webinars.
  • Go to the breakout sessions in networking events.
  • Listen to educational podcasts.
  • Read business books.
  • Attend college classes that address new developments in your industry.

5. They do not build and document successful systems.

Customers want a consistently excellent product or service, which means that the product/service must be developed and delivered consistently. Documenting proven business systems ensures that business owners can delegate any task and that action will be completed to their standard using the appropriate system. Building and documenting processes and procedures makes your company a consistent and reliable resource for customers and employees.

You don't have to follow the above five points on your own. Remember to consult with experts when you need help! Get in touch with the Business Success Consulting Group team for a free evaluation and find out how we can help you document your business systems.

Five Fundamental Mistakes Entrepreneurs Make When Building a Business (And How to Fix Them)

Author: Adi Klevit

Founder: Business Success Consulting Group

Adi is passionate about helping businesses bring order to their operations. With over 30 years of experience as a process consultant, executive and entrepreneur, she’s an expert at making the complex simple. Adi has been featured on numerous podcasts and delivered many webinars, and live workshops, sharing her insights on systematizing a business. She also hosts The Systems Simplified Podcast, publishes a weekly blog, and has written numerous original articles published on Inc.com.

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