3 Common Entrepreneur Mistakes and How to Avoid Them

Working for yourself is great, apart from financial gain, it gives you the freedom of doing what you love and doing it in your own style. But in doing so there are many mistakes that can be made and here are the 3 most common mistakes entrepreneur mistakes and how to avoid them.

3 Common Entrepreneur  Mistakes and How to Avoid Them

Not having insurance

This is one of the mistakes I made when I started my entrepreneurial journey, you know when you have a formal job, your boss or company are obligated by law to give you some sort of insurance, this means when you get sick or an accident there is a company that will help you to pay hospitalization bills.

Most of us when we step out of having a job zone we do not do the same, sometimes without knowing or trying to save some money.

The problem with this is that life happens and if you are to get an accident or get sick you will put yourself or your family in danger of going bankrupt.

What to do?

Search in local areas if there are some insurance companies that offer life or accident insurance packages, if you are not making much money, start small, and in the future, you can have a better insurance package.

Not having a retirement fund

Again when you have a job, automatically you have a retirement fund, you, your employer, and the government are contributing to this plan each month.

When you are self-employed, there is no one doing this for you, you need to do it yourself, depending on the county you are located you might find some banks or financial institutions that can help you to start your retirement fund.

If you do not want a financial institution to manage your retirement fund, you can start to save money that you can use when you retire.

I know most entrepreneurs myself included think that we will never retire, and that is a valid way of thinking but there is time in the future when you will want to slow down and relax or travel the world and work less, you need some funds to help you with that.

How to start your retirement fund

I will recommend saving 10% to 25% of your current income for future use, you can open a saving account, you can start a retirement plan, or whatever is available where you live.

Depending on your income and your age, you can retire with a lot of money, start today.

Not paying tax

I know this sucks, you work very hard, you make your money and you have to pay some of it to the government.

Unfortunately, in most countries you are obligated to pay income tax, this can vary from one country to another, for example here in Mexico you can pay up to 33% of your income as an income tax.

Again the percentage of the taxi you pay depends on the county and the amount of money you make.

There are legal ways to pay less tax, I can not discuss them in this post but you can consult accountants in your local area and they can give you some advice on how legally to pay less tax.

Do not avoid paying tax, this can get you into very serious trouble.

How to start paying taxes?

Check out your country’s regulations on the income tax, consult your local accountant film and ask them questions, figure out how much you need to pay in tax, start putting away the cash you need to pay, and pay it each and every month.

Final words

These are the 3 most common mistakes entrepreneur mistakes and how to avoid them, the question is how many of these mistakes are you making? let me know in the comment section below.

 

8 Core Beliefs of Extraordinary Entrepreneurs

What does it take to be an extraordinary entrepreneur? You know, an entrepreneur who has a vision for a business, rallies support to build it, and then grows it into one of the most innovative companies in the world….what does it take to be an entrepreneur like that? Here are the eight-core beliefs of extraordinary entrepreneurs.

8 Core Beliefs of Extraordinary Entrepreneurs

1: Make a decision and go!

Napoleon Hill called this Definiteness of Purpose, you need to make a decision fast and start taking action, most people fail as entrepreneurs because they lack definitive decisions and hence they procrastinate.

2: Show passion, not perfection

Most entrepreneurs won’t ship their product because they want to make it perfect, I know this is the easy way of not failing but imagine wasting all this time and when the product is done no one wants to use it.

I am not trying to tell you to sell crap products out there but what I mean is that your product does not have to be 100% to go public.

If you can show people, you are passionate about creating a perfect product by releasing it, then getting feedback and iterating…then people will jump on board…especially if the product solves a real-world problem.

Do not try to perfect anything because if you perfect something that no one wants to use, you will just end up wasting money.

3: Avoid the ugly baby syndrome

Most entrepreneurs fall into this category, Have you seen new parents with their newborn baby? All they say is that their baby is beautiful and that is what is called the ugly baby syndrome.

Most entrepreneurs fall in love with their idea and product and they cannot think objectively if you can manage to avoid this you will become the successful one.

4: Find the sweet spot, then scale it

This is another part of not waiting for a perfect product, you need to find a spot where your customers and yourself are satisfied and then scale the product.

5: Don’t think about taking a leap, just take it

Most people I know they are thinking about starting a business for years now and they are still in a thinking phase, if you think that you need to do something that will improve your business just do it, you will get one of the two results, either your business will improve or you will learn something that will not improve your business, in this situation you either earn or learn.

6: Entrepreneurship isn’t a war, it’s about solving problems and turning a profit

Some entrepreneurs out there think that having a competition in business is being enemies and they will do anything to destroy their competition.

If you want to be a successful entrepreneur you need to change your mindset, you need to think more about problem-solving, do not compete with anybody, except yourself.

7: Hire slow, fire fast

When you have people who are working for you, you need to have the best individual out there; you need to take time of finding people who fit into your values and philosophies and you need to be ruthless into firing fast all those you think that they do not fit in your vision.

8. Learn from your first, earn from your second, give back with your third

They say you learn from your first business and in your second you remove the L and start earning, you should always give back to society, it is not all about accumulating wealth, it is about helping others.

Final words

Those are eight core beliefs of extraordinary entrepreneurs, how many of them do you have? How many do you need to change? Let me know in the comment section below.