You will be pleased to know that the American billionaire Mark Kuban has Russian roots. The owner of a fortune of $ 2.3 billion, he showed entrepreneurial talent as early as 12 years old, and after graduation he already set up his first software company. At ABC in the Shark Tank show, the businessman shared what mistakes are often made by novice entrepreneurs.
Ignorance of the basics of business
Business needs investment, but often ambitious and passionate entrepreneurs lack basic knowledge. They want to start their own business, not understanding the difference between the "product" and its "features."
A fundamental understanding of this is necessary even at the stage of deliberation, and not at the stage of finding a loan. It is easy to burn out when there is a misunderstanding that a product, a service is important to consumers, and a feature can only increase their value.
He cites the production of shirts as an example. If a competitor sells them only in blue, then the release of similar red shirts will create a feature, while the needs of people satisfy the functions that this product performs. Successful companies are based on products, not on their distinguishing characteristics.
Inability to evaluate competition
Creating a new service or product is not an easy job, which is akin to a feat. But often novice businessmen are uncompetitive when a serious company enters the market. They have problems, because they cannot surpass business sharks in price. You need to be able to pre-calculate possible competition.
Linking Business Success to One Star Employee
Since childhood, we know that you should not put all your eggs in one basket, but in business, aspiring entrepreneurs often rely on one employee. If they were lucky, and they got a high-class marketer in the industry, for example, then success will not be long in coming. However, an employee can make a fatal mistake or quit, so one cannot allow the profit to depend on one person. To achieve sustainable success, you should create your own team, whose members join their efforts.
Mark Kurban always repeats that he follows the advice of his father, a simple car interior trimmer, who constantly repeated: "You need to work harder, think more and sell more." There are no easy ways in business, about which he warns novice entrepreneurs. Therefore, they should not be sought.