It is no secret that many employment fields have reached saturation in Mauritius and consequently those who have spent years at university, with families making sacrifices to bear the costs, have felt increasingly frustrated. As a result, more and more people from all walks of life are considering starting their own business, especially with the government seeming to encourage entrepreneurship.
Entrepreneurship is on the rise, not only in Mauritius but around the world, but unfortunately some start-ups struggle and fail in the first 6 months, so while managing your own business can seem very appealing, but it is worth noting the risks involved before you start, and here we point out the 4 most common mistakes entrepreneurs make so you can avoid them and increase your chances of success!
1. Spending Before Growth Is Achieved
Now most pundits would say that investing in a business is giving it the means to succeed – as the saying goes, you have to spend money to make money, which is true to some extent, but you must make sure you invest wisely. It does not serve any purpose if you continue to invest in a business before you see any potential. Potential, however, not measured only by profits, but also by what you are building for the future. Many entrepreneurs in Mauritius invest massively in their business even if they have not yet seen the potential of it making even one rupee. Business owners often look upon their business as their ‘baby’ which they have taken years to raise and feel that in giving up, they will give up on their dreams, on their ambitions. Given that it may take some time to build a solid brand name, consider diversifying your approach, do not over-invest in something which has no potential. To avoid this pitfall, you must practice patience. Allow your company to develop steadily, spend your capital wisely, and on items that will reap you benefits in the long run so that your future profits are able to sustain your business long term.
2. Underestimating the Competition
Before you begin your venture, it is vital that you research your potential competitors, to see what they are doing, how well they are doing it and if you will be able to compete against them. Competition is the law of the jungle, and only the fittest survive, if you do not have a competitive edge, you risk being swallowed by the bigger sharks! Even if you deem that your product is unique, study the industry you will be evolving in, do not go diving into a venture before conducting any market research. In many cases customers look for added value, they look for small differences where they can benefit. Why would they buy from you and not elsewhere? You need to have the answer to this question and it needs to be reflected in your strategy. Customers’ need to see that you provide something that your competitors’ do not, furthermore they are seeking choice, if you do not have any variety, they may go to your competitor, even if it means paying slightly more. Going the extra mile in your market research is of great importance when starting a business.
3. Inconsistent Online Branding
With businesses in Mauritius increasingly recognising the need to be online in order to compete or even to survive, the need to be consistent in your online branding is of paramount importance. Most consumers these days tend to use the internet to research products, services or to simply to make enquiries directly to a business. Therefore it is vital that prospective customers are able to find and identify your brand on social media, lending you credibility, as well as showing a level of innovation. You need to ensure that your brand is well presented, as it may well be the first impression you make on prospective customers.
4.Trying Too Many Ideas at Once
When entrepreneurs are in the course of launching a company, the excitement of the process often results in all kinds of ideas which at that point seem viable and profitable. At times the entrepreneur may try to implement all the different ideas in a single venture, which may not be a very judicious thing to do. Instead, try to be objective, ask for advice, and move cautiously, step by step, lest you end up being pulled in different directions. Many ideas may come at once, but it is difficult to sustain and make them all work in one go. Try to narrow your focus, and decide what you can implement when and at what stage of the development process, and from there you will create a clearer path. You do not need to cast your ideas aside, you can simply postpone them for a later stage where their chances of success will be higher since they will gain your full attention.
At MYP we provide a range of services for entrepreneurs. If you’re thinking of starting your own business and don’t know where to start, visit https://www.mauritiusenterprises.com/en/services for more information.