Common mistakes commited by Entrepreneurs

[Saikat B]

I stressed on the most common mistake in my previous thread understanding customer needs , here I expalin the lesser common ones that plague an entrepreneur.
One of the common mistakes that you will see is the misappropriation of demand and supply ( often refered to as the demand supply gap)
Its you who will make the right judgement in this regard.
You have to be careful about managing your delivery capacity and cash flow. Don’t think, “I’m in start-up mode, so I’m just going push the accelerator and focus on how I can continue to build revenues by manufacturing and selling more and more products because the customer demand is growing.”
You must also know when to screech the brakes and let the production process get a breather.

[Kundan]

I dont understand what you mean by saying, putting a cap on your production.
I believe that more consumers brings more revenues so that you can strengthen your production process.
Why do u need to apply brakes to the production while your product is selling like hot cakes?

[Saikat B]

You did not get my point.
#1. I am trying to stress the importance of the demand supply gap
#2. You cant just pick up anyone from the masses and make him/her a part of your organisation. Every personnel has a wait time or seed time during which, the efficiency of the personnel is low. More often than not, they have a negative impact on the process.
Thats why it is essential that you have a demand supply gap in order to maintain your market demand.

[Kundan]

I understand this, but many a time, the workforce is available and you know you can stretch your process a bit more. What about those cases?
I should know when to press the brake peddle..
thats what you will say, but How do i know that?

[Saikat B]

This is what you need to know...every process has a capacity...
You must know the upper limits for your process...Once its nearing the limits, you must start decelerating.
Thats the only way...

[Saikat B]

The Next common folly that entrepreneurs commit is that they undermine the importance of selling!
You may have a great product, but if you dont know or you under estimate the art of selling, you are not a successful entrepreneur.
There are, in fact, two aspects to selling. The first is the actual sales force working with customers. Hiring the right sales and marketing executive is critical. This person must have a good understanding of the product and the customer base as well as product and purchasing cycles. The second type of selling involves selling the “idea” of the company. What are you all about? Why does what you do add important value to your customers’ lives. In most cases, the founders will be the primary sellers regarding the idea of the company. Selling the company vision to key constituencies, including employees, investors, and customers, is a key role of founders and company CEOs

[Kundan]

what you say here is very right!
The art of selling is a very important skill in any enterprise.
Selling is not just making the sale, but the entire sales process is very crucial for the efficient running of any organization.