EAESP professor addresses common mistakes of new entrepreneurs

The initial success of a new venture does not necessarily mean that the business is going well, said the deputy coordinator of the Center for Entrepreneurship and New Business (GVcenn) of São Paulo School of Business Administration (FGV/EAESP), Marcelo Aidar, to the magazine Exame online.
Institutional
17 January 2014

The initial success of a new venture does not necessarily mean that the business is going well, said the deputy coordinator of the Center for Entrepreneurship and New Business (GVcenn) of São Paulo School of Business Administration (FGV/EAESP), Marcelo Aidar, to the magazine Exame online.

The report points out the four most common mistakes made by new entrepreneurs. According to the professor one of the main mistakes is not to use indicators to evaluate your own small business or startup. The entrepreneur needs to create indicators in order to better analyze the business. The more you increase your sales, the more you need resources, teaches Adair.

The second most recurrent problem for the magazine is overconfidence, which can also cause troubles for the business. Overestimating the market, for example. Perhaps not so many people have the needs for the product/service offered or maybe the entrepreneur thinks there's no competition, says the professor. The publication also points out that large sales in the first year of the venture does not mean that the business is a success. The entrepreneur only has an increase in sales because it is new, but signs of loyalty are not available and he/she doesn't know how much the customer is enjoying it or not, says Aidar.

Consequently, the last error listed by Exame is to innovate only during this time period - when the new product/service usually draws attention and starts to be bought. However, the entrepreneur needs to know what the differentials of his/her company in the market are. Entrepreneurs often say 'my differential will be the quality of the product and service,' says Aidar. His advice is to make consumers recognize such differentials clearly.

Please click here and learn more about the Center for Entrepreneurship and New Business (GVcenn) of FGV/EAESP (in Portuguese).

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