Business mistakes are common. For a newbie, mistakes may come in many forms. One of which is described below.
Learning how to start a business and going through apprenticeship programs are not enough to make one successful in business. Many young men and women, after going through business trainings, would do nothing instead of pursuing their avocation. They refuse to work for another and instead hurry on in building a name for themselves. They would hurry to build an empire but they refuse to work hard. This is one of the many forms of business mistakes.
Hurrying without planning is one of the most common mistakes that most people commit. You ask a newbie how much capital he has, he would say he does not have but he’s going to have it. He would either borrow money or that he is waiting for the death of an aunt who has plenty of wealth and no heir but him.
Starting a business from borrowed money is one of the business mistakes that would get you nowhere. Most people who borrow money do not know the value of earning by experience. It would be easy to spend money that’s not earned from hard work. It’s like winning from lottery—easy come, easy go. It’s because those people do not know how to value the huge amount of money that they have. They did not get the money from their efforts, the reason why they tend to spend everything easily. These are business mistakes that you should avoid.
As shown in many cases, starting a business with capital that one did not earn often does not result to success. Nine out of ten wealthy men of today started out poor. But because they were determined to succeed as well as good habits and perseverance, they made money gradually. They saved it and from there, they built not only their businesses and their empires. They avoided common business mistakes that most men do.
Among them who did not commit the mistakes mentioned above include the following:
- Stephen Girard, who started as a poor cabin boy. When he died, he was worth nine million dollars.
- A.T. Stewart was a poor Irish boy. The taxes he paid each year amount to one million and a half dollars of his income.
- John Jacob Astor was a poor farmer who died worth twenty millions.
- Cornelius Vanderbilt died worth fifty million. He started out rowing a boat from Staten Island to New York.
Business mistakes: Thinking that being a millionaire is an easy road
There is no easy way to wealth. This is similar to learning. A student has to experience hardships in going to school. He needs to study everyday in order not to fail. He needs to expand his intellect. This is the same with wealth.
Most people commit the business mistakes of looking for easy money and going through the business without financial know-how. To avoid these mistakes, here are some things to remember:
- Study the rules and study human nature. Expand your intellect and muscles. As you go through your study, you increase your experience. This will enable you to accumulate wealth and knowledge that will help you avoid committing business mistakes.
- The poor boys get rich, the rich boys get poor—this is one thing that you will learn on your study. Here’s how a rich man commits mistakes: A rich man, when he died, leaves a large state to his family. The eldest sons, who have helped the rich man earn his fortune, take their inheritance and add to it, having gained enough knowledge and experience by helping their father. The younger children meanwhile are placed at interest and the grandchildren are told many times each they that they are rich and would never have to work when they grow up. That would be the start of the younger children’s fate to being poor.
- In this country, it is common to see the poor of today being the rich in the next generation. It’s their experience that helps them get rich. But their children, whom they would leave their vast riches, are often inexperienced. Unless they teach them to handle the business, unless the younger generation learns the value of hard earned money, they would keep committing the business mistakes that make the rich become poor, or the poor to remain poor.
- Listen to other people to avoid committing mistakes. You will get to learn the tips and avoid the mistakes as you study and get experience. Experience comes when you don’t hurry.
To avoid business mistakes, your ambition is to excel. You have to excel others engaged in the same occupation. No profession, calling, or trade is overcrowded. There is always a room for another, especially at the upper story. This is true whether you are a businessman, a merchant, a banker, a carpenter, or a shoemaker. No matter how many you are in your field, there is always a room for improvement. Unfortunately, there are many people who want to get rich quickly. They commit business mistakes. They do not do their business thoroughly as they should. But those who strive to excel others in his own line, those who have learned good habits—they are sure to succeed in whatever they do.