Submitted by: Submitted by limcharleston
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Category: Business and Industry
Date Submitted: 09/02/2010 07:50 AM
Entrepreneurship Lesson 2
An entrepreneur solves people’s problems and makes a profit.
10 Deadly Mistakes of Entrepreneurship
1. Poor Location
Downside: You won’t have any customers as it is out of the way or have no traffic
2. Incorrect Pricing
Over price or under price
If it’s under price, you wont make a profit
It it’s over price, no one will buy
3. Lack of experience
You don’t know what you are doing
4. Uncontrolled growth
Your expenses are going to grow fast
Example: Osim
Osim was opening everywhere around Singapore and out of Singapore
But when the financial crisis hits, they didn’t have enough money.
They expanded too fast.
5. Poor financial control
Results in US financial crisis
Example: Giving high bonuses to senior executives when companies cannot afford it.
6. Management mistakes
NKF Ex Chairman – Durai
Companies are not managing their money well
7. Weak Marketing Efforts
How do I get the customers?
No customers, no business!
Having a good product is not enough
Focus on the marketing!
8. Improper Inventory Control
9. Failure to develop a strategic plan
10. Inability to make the “ entrepreneurial transition”
If you have been going on a steady job for 20 years and because of a financial crisis and now you have been retrenched
If you used to be an accountant and you were retrenched, now you are an entrepreneur, you have to start work at 8am at home like how when you used to start work as an accountant. Cannot be lazy and stop working as an entrepreneur.
We need to switch into business mood.
Some people have to always depend on their boss to tell them what to do.
Putting Failure into Perspective
As an entrepreneur, you will make mistakes and have failures.
There is a chance that people will steal your idea when you have a really good idea
What does it mean to fail...