Financial Mistakes

[Kelvinid]

Starting a business is real combat, completely different from theory. There are hundreds of problems that we will face and solve when starting a business. And depending on the field and industry, we will face different challenges and difficulties.
Very few people will succeed immediately on their first startup attempt, no matter how well they prepare. Therefore, the most important thing is not to spend too much time just preparing, but to prepare mentally to get back up every time you fail.

Success in business doesn't come from avoiding failure, it comes from learning from mistakes and never giving up.

Good preparations may not always work in the market, there are sudden circumstances that will hit your business and will challenge yourself how to effectively manage the business despite of the risks and difficulties along the way. This is the reason why not all business owners continue to thrive, simply because not all of them are well strategic when it comes to finding solutions to every problem, despite how well they prepared to make the business successful. The real challenge in a business is not how well you prepare for it, but how effectively you combat and overcome all those risks to make your business succeed in the long run.

[Iroh]

You do have a point. In a bid to hurriedly start up a business, lots of people heavily rely on capital thinking it's what is mostly needed for a small business to survive and thrive. Obviously, a small business do need lots of capital to able to efficiently manage and run its affairs, there are other important factors asides capital needed for a small business to stand and grow.
You can throw all the money at a startup but without adequate planning, the startup is bound to fail. In management, planning comes first amongst all the other functions of management and for a reason too. All the points raised in the OP can also be grouped under planning. Proper and rigorous planning coupled with adequate funding increases to a large extent, the possibility of success.

[Odusko]

Those mistakes are normally going to come to all of us if we're starting our ventures or even if we're already experienced. There is no way to skip all of those mistakes but we can learn from all of it. We become better when we're tested and we've experienced failure. Because that will make us as a better person and as well as a better businessman. If nothing happens after that, we don't like what's happening with us but we have to love the process because every successful person that's already in the top will say the same thing, be consistent, embrace failures and use it as a way to become more inspired because for every success we see from the others, they've been through several mistakes and failures.

We may not be able to totally escape those mistakes, but at least we can work to lower their effects on the business by studying the elements that draw back start ups, both in our local economy and the global economic also, so we need but the knowledge and the skills together and from there we can properly manage the risks that comes along with running the business at individual level.

[Rufsilf]

Most of the individual that are going into business most times venture into the business just because the have the capital to set up the business, but forgetting that Capital is just one aspect of the business and for some reason we need to know other aspects that make up for a running business, the lack of this knowledge is what have been the bedrock of the failure of must individual start up businesses.

That's actually most what happened in a business, they value more on having a good amount of capital rather than to acquire sufficient amount of knowledge first prior to starting a business, and eventually it resulted into a loss and disappointment.

This is a realization that when running a business, the knowledge, experience and the skills should be prioritize first so that the success will be more visible, having a good amount of capital will be easier then especially if you have some connections to rely on.

[Kaliandra]

This topic reminds me of my past experience of having capital for a business but not thinking things through and immediately starting a business without any knowledge, which ultimately led to my failure. So, if we want to start a business or company, we must first have sufficient knowledge because without it, we will potentially suffer losses.

However, we must never give up if we face failure, as sometimes we must endure losses before achieving success. So, the point is that in business, we must also have a strong mentality because if we don't have a strong mentality, it will be difficult to succeed. However, it would be better to choose a business in a field that we are good at or one that suits our hobbies because if we have a business that suits our hobbies, we will definitely be enthusiastic about running that business.

[Dzwaafu11]

I would also like to add that I see often how people build business partners without really knowing the person all too well. And most of the time that doesn’t end well. I know that some people trust too much their business partners that they don’t write anything in paper or contract which allows the other person to take advantage of the business without repercussions.

Yeah. Many do this, some people don’t care who a person is, whether he or she is legit or not, they don’t do proper research before a business partner that’s it’s always hard to end well as you said.

However, I have many business that doesn’t improved like other companies due to issues like this, so the best thing is to know what you are using money to do, won’t give the desired results then I will say it doesn’t worth to take the risk.

[ruykeri]

Those mistakes are normally going to come to all of us if we're starting our ventures or even if we're already experienced. There is no way to skip all of those mistakes but we can learn from all of it. We become better when we're tested and we've experienced failure. Because that will make us as a better person and as well as a better businessman. If nothing happens after that, we don't like what's happening with us but we have to love the process because every successful person that's already in the top will say the same thing, be consistent, embrace failures and use it as a way to become more inspired because for every success we see from the others, they've been through several mistakes and failures.

You are right. People actually learn from mistakes, that is why in the case of investment, one should start with a small amount of money to learn. If one invests a lot of money without proper education and investment strategy and takes risks, then if faces losses and will not get the opportunity to invest again later. That is why everyone should be a little more careful before making any investment so that one can face less losses.

[Youngrebel]

I would also like to add that I see often how people build business partners without really knowing the person all too well. And most of the time that doesn’t end well. I know that some people trust too much their business partners that they don’t write anything in paper or contract which allows the other person to take advantage of the business without repercussions.

This is a very important point to take note of aswell in business, as often often times people tend to form familiarity  or family or even because of friends.  
This familiarity has caused a alot of businesses regrets that if they had known they would not take the steps they took.  Aside the facts that their business partners take advantage of them sometimes they even forget the agreements that they've had im the past because these agreement was not written down.

[alankasman]

You are right. People actually learn from mistakes, that is why in the case of investment, one should start with a small amount of money to learn. If one invests a lot of money without proper education and investment strategy and takes risks, then if faces losses and will not get the opportunity to invest again later. That is why everyone should be a little more careful before making any investment so that one can face less losses.

Knowledge about things that need to be understood is how people who make mistakes require research so that in the future, they will certainly not repeat them, especially regarding investing in Bitcoin. Because with things like that, our strategy in this field is certainly to prevent losses when we invest more carefully because everything we do certainly has risks. However, with this knowledge, we can avoid potential losses that could occur to us. Therefore, research is necessary when making mistakes.

[SOKO-DEKE]

Honestly, a lack of proper knowledge is what mostly causes business failure. So, for anyone who wants to start a business, there is no need to rush. They need to calm down and try to learn and gain proper knowledge before setting up a business. That is the only way a person can be able to follow the right steps in business and become successful.

Having capital is the first step of any business and it is really necessary but it doesn't guraanteed business  sucess. We should have it before processing business plans, because through capital someone can plan for the kind of business they want to do and seek proper knowledge about the business.

[Marvell1]

Everyone has to figure out their own way in business and anyone who has ever ran a business will admit to making dozens, if not hundreds, of mistakes as they learn. You will not learn everything from reading, or figure out every pitfall, or understand every marketing strategy that is destined to fail unless you actually take action. Acting like every one who has ever created a business has been infallible and made zero mistakes is incorrect. You will waste some money along the way, but as long as you refine your skills and optimise them for next time, that knowledge you accrue starts to become priceless. Some people will have natural talents in the areas you mention, but it is usually stuff that they have learned or self taught themselves along the way.

Agree. It would be very difficult to succeed in business simply by reading books and applying basic knowledge found on the internet, nor would we be able to succeed by imitating others. Each individual and business has different circumstances, resources, markets, and timing, so the path to success is never the same.

In business, mistakes and failures are inevitable, and no business has ever achieved success without making mistakes or experiencing failures. The important thing is not to avoid or fear failure, but to prepare and always be ready to learn from failure, hone skills, and continuously adjust strategies over time.


To succeed, we need our own experience and understanding, we cannot succeed simply by imitating and relying on the experiences of others.

[Bobrox]

Honestly, a lack of proper knowledge is what mostly causes business failure. So, for anyone who wants to start a business, there is no need to rush. They need to calm down and try to learn and gain proper knowledge before setting up a business. That is the only way a person can be able to follow the right steps in business and become successful.

Having capital is the first step of any business and it is really necessary but it doesn't guraanteed business  sucess. We should have it before processing business plans, because through capital someone can plan for the kind of business they want to do and seek proper knowledge about the business.

What happening for many business get failure due lack knowledge about what the business start, important thing have knowledge firstly before begin with business but most of people think will learn during business begin. I think start business the same way with trading not be hurry up when business start and prepare all needed firstly from money budget management, marketing way until how to manage outcome for the beginning of business we can earn stable profit.

I think in business need to make good roadmap and money management if lack knowledge about this way I don't think has any one will be success with their business exactly some one beginning new business without having much experience firstly.

[ancafe]

1. Inadequate knowledge of the business
2. Poor management skills.
3. Lack of financial control .
4. Impatience.
5. Failure to recognise targets market areas.
Etc

With the five points you shared, it's clear that someone trying to develop a business will never succeed if they don't possess the best business skills. I once listened to my parents' advice: learn from others first so you can start your own business once you understand how then it will be easier to implement. Now I understand that advice because every business owner must have experience, as it allows them to develop their business effectively and on target.

Lack of knowledge stems from never having studied business, and financial management skills will also come with experience. That's why it's better to work for someone else before trying to start your own business, because that way, you gain knowledge about the business you're about to start. This is much more effective than going straight into business without knowledge and experience.

[davis196]

Sometimes in view to setup a business because of the availability of funds we tend to hurry into it without fully gaining proper knowledge of some certain thing's and factors. We feel money is the sole driver of a business neglecting basic knowledge that we would need to keep the business running after it is been set up. These little but important things lead to the failure of the busines which I tag a financial mistake.  Below are a few financial mistakes business starters make and you can as well add yours for the purpose of knowledge for us to learn and take note of.
1. Inadequate knowledge of the business
2. Poor management skills.
3. Lack of financial control .
4. Impatience.
5. Failure to recognise targets market areas.
Etc

Nobody is born with the necessary skills and knowledge about how to run a successful business. Most people gain knowledge and skills by trial and error. Not giving up too early and not being afraid of failure is the most important thing when starting a business. Most small businesses end up going bankrupt in the first 2-3 years of their existence.
All the financial mistakes when building a business cannot be summarized in a few bullet points, because each industry has it's own set of differences. You can start a business with small capital in certain industries, while other niches and industries require big startup capital.

[cyberninja2]

What happening for many business get failure due lack knowledge about what the business start, important thing have knowledge firstly before begin with business but most of people think will learn during business begin. I think start business the same way with trading not be hurry up when business start and prepare all needed firstly from money budget management, marketing way until how to manage outcome for the beginning of business we can earn stable profit.
I think in business need to make good roadmap and money management if lack knowledge about this way I don't think has any one will be success with their business exactly some one beginning new business without having much experience firstly.

In this case, we must also have a basic understanding of business. Many people have significant capital, but lacking the basics, it's incredibly difficult to grow their business.
Because people who own businesses with multiple branches certainly have a foundation from the beginning, whether it's inherited business or the result of their own achievements with strong determination. In this case, a strong mentality is also essential, because sometimes with various obstacles that arise in the future apart from the basics of business a strong mentality is also essential.

I think in business need to make good roadmap and money management if lack of knowledge about this way I don't think anyone will be successful with their business exactly someone starting a new business without having much experience firstly

[Oluwa-btc]

1. Inadequate knowledge of the business
2. Poor management skills.
3. Lack of financial control .
4. Impatience.
5. Failure to recognise targets market areas.
Etc

No matter what knowledge would keep evolving that's to say we would always need to grab knowledge in daily basis since learning never ends but then not having the right knowledge will eventually limits one to achieve certain things and that's where the mistakes comes. As a business owner one thing to acquire is knowledge about the business, and it involves strategies that would be beneficial to you and the business.So inorder to avoid this financial mistakes I agree that one needs to apply simple principles that will guide them through.

[Rockstarguy]

Preparation of business plan before budget arrival: Business plan at hand should be well documented, written, organized, every cost of materials, marketing strategy at a certain period of time, workers payout, advisors meetup, area of specialization and many many more should be well written and presented in a decent manner before the arrival of capital.

Businesses usually fail when all these are not set first, because everything to be done after the arrival of the capital usually comes in a haste which most time causes a serious collapse in businesses. Imo

Apart from all these plans, another thing to consider when planning to go into business is to also evaluate the location where the business will be situated and whether it is a good place for the growth of the business. Sometimes we enter business with the best preparation but fail to consider the location.

Some people remember to think about the location and are aware that it will affect the business in some way, but they believe that with time, development will come and boost the economy and population, which will also positively impact the business. This is an important aspect to consider when making plans for a business because if you are planning to enter a business that people cannot afford or that is not in demand, there is no need to pursue such a venture.

[Hanadawa]

This is a very realistic take. Owning a business is often romanticized, but the reality is far from easy. Many people jump in because of pressure or hype, without understanding the risks, responsibilities, and constant stress involved. There’s absolutely nothing wrong with having a job or building a solid career — for many people, it offers more stability and peace of mind than running a business. A business can work well, but only when it’s entered with proper knowledge, planning, and acceptance of possible losses. The idea that business automatically equals freedom or an easy life is misleading; it usually demands more sacrifice, not less.

That's why I believe we shouldn't be tempted by motivational speakers to resign and start a business. I remember a motivational speaker once saying, "A small business is better than being an employee at a large company. Because in a small business, you are the boss. But in a large company, you are still an employee." I believe this is a fallacy. A business with small capital will face many challenges. Besides money, knowledge, skills, relationships, and risk management are essential if it wants to survive and avoid bankruptcy. You can also be outmaneuvered by competitors with larger capital. Instead of gaining freedom, you might be trapped in the small space of your small business forever if you don't know how to grow it. Being an employee does carry the risk of being fired at any time. However, if you work for a reputable company, you will receive benefits and a larger income than a small business.

I believe the correct mindset is that if you have the mentality of an employee, have the ability to continuously learn, and are ready for challenges, then go ahead and start a business. However, if you are not ready for the high pressure, then being an employee, but in a company that doesn't exploit you, is a wise choice.

[tabas]

Those mistakes are normally going to come to all of us if we're starting our ventures or even if we're already experienced. There is no way to skip all of those mistakes but we can learn from all of it. We become better when we're tested and we've experienced failure. Because that will make us as a better person and as well as a better businessman. If nothing happens after that, we don't like what's happening with us but we have to love the process because every successful person that's already in the top will say the same thing, be consistent, embrace failures and use it as a way to become more inspired because for every success we see from the others, they've been through several mistakes and failures.

We may not be able to totally escape those mistakes, but at least we can work to lower their effects on the business by studying the elements that draw back start ups, both in our local economy and the global economic also, so we need but the knowledge and the skills together and from there we can properly manage the risks that comes along with running the business at individual level.

Yes, mitigating the effect of it once we know that they can happen to us. The experienced ones will lessen the impact of it to them and won't be thinking a lot of it anymore because they have a way in order for them to do that. And to the new ones, they're likely to become more affectionate about it because they are not used to it but eventually, they will.

Those mistakes are normally going to come to all of us if we're starting our ventures or even if we're already experienced. There is no way to skip all of those mistakes but we can learn from all of it. We become better when we're tested and we've experienced failure. Because that will make us as a better person and as well as a better businessman. If nothing happens after that, we don't like what's happening with us but we have to love the process because every successful person that's already in the top will say the same thing, be consistent, embrace failures and use it as a way to become more inspired because for every success we see from the others, they've been through several mistakes and failures.

You are right. People actually learn from mistakes, that is why in the case of investment, one should start with a small amount of money to learn. If one invests a lot of money without proper education and investment strategy and takes risks, then if faces losses and will not get the opportunity to invest again later. That is why everyone should be a little more careful before making any investment so that one can face less losses.

I agree about doing and starting it small. Not all can invest huge asap and that's the main thing in investing, one has to start small so if it fails that won't be hitting you too much and not very painful at all.

[Dr.Bitcoin_Strange]

Instead of calling the title a financial mistake, I think it should have been titled "mistakes of new business starters" Or maybe something similar. This list is accurate but like someone mentioned and I also want to emphasize on it, wrong hiring can cause a business to fail and it's a common mistake of some entrepreneurs. They hire incompetent staffs and doesn't know how to manage the situation until it is out of control. Another is conducting research about the site you want to launch the business, do research to know what the people there want, that will help improve your business success.