Mr. Neetish Sarda founded Smartworks in 2016, which has now become the largest provider of flexible managed office providers in India. Different from his father, Mr. Ghanshyam Sarda, and he already settled businesses, Mr. Neetish Sarda trusted his vision in an entirely new direction. He wanted to create a managed office space that would attract employees to work.
As a young entrepreneur, Mr. Neetish Sarda took calculated steps which led Smartworks to become one of the most sought-after companies in the country. Based on the techniques employed by him and their effects, we have crafted a list of mistakes that young entrepreneurs must avoid.
Pitfalls Young Entrepreneurs Must Avoid
Heeding to the example of Mr. Neetish Sarda, given below is a list of 7 pitfalls that must be avoided by all young entrepreneurs.
- Skipping on Research: Researching the market and the industry before stepping in is crucial for any entrepreneur. The absence of proper research would not help you in the long run. It is paramount to have a deeper understanding of the industry you are going to work in. The product or service which you are planning to introduce would also benefit from thorough market research. Many other decisions are dependent upon how good of a research job you have performed. Important details about the startup, such as pricing, cost management, target market, and many others, are based on the primary and secondary data retrieved after the research process.
- Not Going Legal: Business commencement involves a number of formalities. Do not miss out on following the legal aspects of starting a business. Taking a leaf out of Mr. Ghanshyam Sarda’s book, Neetish Sarda made sure that his company was legally registered before commencing. Obtaining all the licenses relating to the concerned field is necessary to pursue scot-free business practices. Also, every industry requires several different licenses and formalities to be fulfilled. Be prepared with all the answers from the get-go.
- Not making a Business Plan: A business plan is a roadmap of the realization of your business dream. You must not skip this decisive detail before starting your business operations. It is not advised to even think of beginning something before planning. A proper and detailed business plan provides the required clarity regarding the key aspects of your business. It would also help you in identifying your priorities that need your focus. You would not have a clear idea about the process of business without a business plan. A business plan is also required during the funding process of a startup. Every investor needs a detailed business plan before investing their money in a startup.
- Ignoring the Competition: No matter which industry you belong to, there are competitors everywhere. It isn’t wise not to give attention to your competition when starting a business. Your competition can also be a source of great learning for you. You can learn from the mistakes of your competitors. Competitors also keep the business game healthy and motivated. Every industry experiences ups and downs, and with the help of healthy competition, it is easier to cope and get inspired.
- Quick Expansions: Being in the starting phase of a business, you have to make sure the pace of expansion is optimum. If your operations expand very quickly, it can make alarming impacts in the long run. Before going forward, make sure that the backend departments of your business are fully equipped and running smoothly. Office space is another aspect that can fall into trouble with businesses that spread out quickly. Management can get under pressure while dealing with pressure situations in the absence of optimum experience. Also, heavy workloads with an expansion would mean overworked staff, which is never a good thing.
- No Plan B: Often, young entrepreneurs overestimate their idea and worth even before starting their business. This makes them lose track of their goals. Devising a Plan B is always a good idea if you are starting new. However sure you may be about your business idea, there are certain factors which you cannot control. Having the proper knowledge and a market reach does not always mean surety in success. Mr. Ghanshyam Sarda, the father of Mr. Neetish Sarda, always made sure that the business had a backup plan to fall on. A Plan B is what makes you more confident about taking risks which is essential in succeeding.
- Hiring Subpar Employees: A properly planned recruitment process is needed for a new business. Young entrepreneurs often make the mistake of hiring too soon. You need to be sure to train and hire only those employees who would add value to your firm. If you base all your hiring decisions on your cost, you might end up with people who charge less. This might be beneficial for the time being, but in the long run, cheap hiring results in subpar performances. Decide in advance who you want to be associated with. Try to think if you see yourself with the people in the future of your business.
The most important decisions are taken at the time of starting a new business. There is a very slim chance that no mistakes will occur during this time. Therefore, it is best to be prepared and well-read about potential mistakes which could be made by you.