As aspiring entrepreneurs all of us are lost in one way or the other. And thus, we make mistakes that could have been avoided with just a little more attention towards the generic mishaps made in the business industry.

Mahim Singh, the Program Manager at Nepal Entrepreneurs’ Hub, shares his observations regarding some of the most frequent mistakes that Nepalese start-up entrepreneurs make.He feels that numerous start-ups fail in Nepal despite having amazing brilliant ideas. Well, that’s mainly because these entrepreneurs aren’t doing things in the right way.

Here are seven bad moves that most Nepali entrepreneurs make while setting up their business:

  • Forgetting that finances come first

The key to any successful business venture is a clear and correct financial documentation. Most Nepalese entrepreneurs fall behind when it comes to financial tracking. They use office money for personal matters and vice versa. Because of this, even though the cash in hand looks pretty decent, the company actually becomes a victim of great loss due to all the quick and erratic cash flow. Thus, no matter the size of the company, it should always keep a record of its financial transactions from the very first day.

  •  Willfully doing things alone

Having a co-founder is not a prerequisite for a successful business, but it is always better to have a business partner to share your burden of work and moments of joy. Let’s look at some of the top companies in the world – Microsoft, Apple, and Google. All of these companies had cofounders. But here in Nepal, entrepreneurs have a very negative mindset about partnerships. They view partnerships as a road to loss and chaos. Contrary to this popular belief, co-founding is a great way to succeed in a business. You have a person who shares the same passion that you have. Your partner can help solve problems, pitch in ideas, and even cover up for you when you are ill or have some personal responsibilities to look after.

  • Striving for perfection

One of the major mistakes that aspiring Nepalese entrepreneurs make is that they constantly work to achieve the perfect version of their product. They continuously build on their idea but do not bring it up to the targeted customers until and unless they feel that the product is perfect. Consequently, by the time they get their ‘ideal’ product, they would have already lost their window of opportunities. Instead, start-ups should start with a Minimum Viable Product and use it to get feedback from their potential customer pool, and then iterate products along the way to meet the customer’s need. There is no perfect product.

  • Overly emotional attachment

It is normal for entrepreneurs to be emotionally attached to their products. After all, it is their very own idea.  However, sometimes entrepreneurs are so emotionally attached to their product that they are not at all ready to change it even by a bit. Eventually, the company will only end up having products that don’t fit your targeted market. That is why start-ups need to have an open mind towards ‘pivoting’ their products. Pivoting, in business, means to modifying  products to meet changing market demands. Nokia, for example, didn’t change its product in the changing Smartphone industry and thus, the company hit its rock bottom. 

  • Imaginary business plan

A printed business plan is like a guidebook for entrepreneurs. The plan acts as a reminder of their company’s objectives and course of action. It is extremely difficult to succeed when entrepreneurs have absolutely no written draft of their company’s goals and strategies.  Furthermore, having a written business plan will always increase the entrepreneurs’ credibility when they go for loans and investments.

  • Picking wrong employees and location

If customers are the heart of the company, then its employees are the body of the company. That is why entrepreneurs should always hire people who believe in the true vision of the company and are passionate to work and learn. Similar is the case with office location. Unless it is a digital company, the office address makes or breaks a company.  The entrepreneurs should carefully analyze the location in terms of its potential customers and the industry as a whole. Choosing wrong staff and location to save some cash is an absolute death move.

  • Limiting growth

Regardless of what the business is, it has to have the ability to scale up. At times, entrepreneurs try to make profits out of their small and extremely exclusive plus limited market. This prevents the company from exploring other avenues possible for growth, which ultimately leads to the death of the company. That is why Nepalese entrepreneurs should always be open to exploring new areas for business expansion.