When it comes to business, we often want to hear the success stories of successful tycoons who have been in the industry for a long period of time. We tend to take down notes on the key points that allowed them to reach their current position. We might also attend talks and spend money on such just to get a hold of such opportunity. Although it may be a natural instinct to know all the good sides of the success story, Guy Kawasaki has also suggested top mistakes entrepreneurs make in his years in the industry. These three tips could often be neglected or left unnoticed. And hopefully, after knowing such, we can learn more about how we can approach that business idea we have in mind.
Guy Kawasaki has worked with Apple for several years. His name is very much familiar in the Silicon Valley. He has also invested in several start-ups, written 13 books and been invited to speak on several occasions. One of which is at UC Berkeley in the United States. Kawasaki stated some miscues entrepreneurs commit. The first one is scaling too fast. Oftentimes, we get excited on this new undertaking that we have. We have this brilliant idea in our minds which make us think far ahead. We try to look at all possible add-ons. For instance, when starting up a business, we still don’t have any profit. We’re only using the capital that we have. However, there may be instances when we realize we’re not good at some aspects so we decide to hire someone to it for us. We hire a visual artist, a programmer, and the list goes on. This lets entrepreneurs incur unnecessary expenses. The lesson here is it’s perfectly fine to dream big and to get all hyped up. But before anything else, we should evaluate what we really need and what we can focus on. Based on Kawasaki’s years of experience, no company has died because it could not scale fast enough. What matters the most is focusing on catering the right product.
The next mistakes that entrepreneurs make are focusing too much of their energy on creating that perfect pitch. We believe that we have to have that perfect PowerPoint presentation to let other people see our product or service. Some people even hire individuals who could do it for them. Kawasaki then identifies that we might be losing track of what really is important. He then suggests that instead of focusing on the pitch, one should focus on creating an actual prototype. This is the most crucial aspect as this is the tangible item that could either make or break a business, to begin with. Even if one has that very neatly-made presentation, but not an actual product, sales will not come into the picture. This is especially vital when one is searching for possible investors that could fund the idea. He also gave an example of how having limited means could be to good advantage in this scenario compared to having several resources on the plate. When one has limited resources, the person would really try his/her best in creating that prototype just with the first try. This enables the traits of perseverance and resourcefulness that could lead to making the actual item.
Last but not the least misconception is some entrepreneurs tend to do things one by one. In Kawasaki’s terms, we proceed serially on tasks.There’s a step by step process involved. For instance, we first save up some money, then second we hire people, then third we learn a new software, and the list goes on. As much as we want to find balance and be at our own pace, he states how this way of thinking could limit our growth when it comes to making money and doing things. In reality, deciding to start a business means doing everything all at the same time. Yes, it is difficult and unfair. But it is the way to go as this is a one man show. Having this understanding could help one who decides to enter the entrepreneurial world.
These three tips may or may not help everyone, but considering these could be of good advantage to any entrepreneur. This may be applicable to an individual who plans to start-up a business and even to companies that have been in the business for several years. Everyone commits mistakes even big companies such as the incident with the Japan hotelier speaking up about the Nanking Massacre which has cost much to the relations of Japan and China. This only proves how everyone could learn a thing or two and apply them in their future undertakings.
