Entrepreneurs invest more than just money into their business. It’s important to get a good return on investment when you spend money on something but what about the time you put into it? Entrepreneurs often invest so much time into their business that it’s important not to get stuck in to some of the traps of entrepreneurialism. Here are four common traps entrepreneurs encounter and how to deal with them.
Being a Control Freak
Many entrepreneurs struggle with relinquishing some of the responsibility. When you start your business and have to wear all of the hats before you can afford to hire people, it’s hard to later let go of certain tasks. It’s important that a time comes where you can let others help you. Once you can afford to hire people or outsource certain tasks, use this as an opportunity to let go of responsibility or tasks you are not good at or hate to do. While fear can hinder you here, it’s important to learn to trust others and allow people to have the opportunity to work for you. You’ll free up your own time to focus on the things that only you can do.
Giving Away Knowledge and Talent
Starting your own business is very expensive. Many entrepreneurs find themselves going into debt and not seeing a profit for a few years while their business gets going. Another problem they see is that friends, family or new clients will come in for a free consultation and never pay or return. While it may seem like a good investment to give a free initial consultation, many times the client doesn’t come back or continues to expect your help for free. With friends and family, you may feel guilty asking for payment and new clients may realize they don’t need your services after the initial consultation. Don’t give away your time and talent for free when this is your business.
Entrepreneurs finding themselves in business debt can consider a debt consolidation loan or counseling. This takes all of your debts with different creditors and combines them into one, more manageable loan. Your interest rate and monthly payment will decrease making it easier to fund other areas of your business. This will help you get your finances under control while your business begins to thrive and profit.
Another trap of entrepreneurism is over-planning. Creating a business plan with charts and expectations creates a positive outlook but makes expectations way too high. Many find themselves so consumed with planning that they don’t execute. While planning is important, taking action stops you from worrying about the “what ifs” and taking steps in your business.
Many entrepreneurs fear taking risks and want to wait for ideal conditions before taking steps. Whether they are waiting for enough money, waiting for enough time or better economic conditions, some entrepreneurs get trapped waiting for the perfect moment to do something. You can never be successful without taking a few risks.
These traps many entrepreneurs face are common but can be avoided by taking more risks, managing your income and managing the workload.