I’m an advocate of Students Entrepreneurship. Besides studying to make grades, it is good for students to start doing business to make money in school. Let us look at common mistakes students make in business and possible solutions.
In one of my favourite articles, I explained how to start blogging and make money in school. You may click here to go through it now or come back later after going through these costly mistakes students make in business and how you should avoid them.
A few of the good things business will do for you in school is Financial Freedom and preparation for Life After School.
I was able to sponsor myself throughout school after I started business in the second year (200 level). Business kept me busy and away from frustrations of seeking employments that don’t exist after school.
As beneficial as doing business could be, certain mistakes can make you regret ever going into business as a student. Without further introduction, here are common mistakes students make in business and solutions.
1. Unprofitable Passion
When it comes to business, everyone keeps telling you to follow your passion. Before you decide to follow your passion, ask yourself the question, “how many persons are willing to pay me for my passion?”
Following your passion is excellent only if your passion can convert to profit. Instead, look for something profitable and achievable, be very good at it and turn it to your passion.
On the other hand, passion is very important when you are doing business. Ensure to be passionate about business and every other thing you do while in school.
2. Thinking Failure
Many students already conclude that they will fail in business even before starting. This is a mistake that can even make you fail.
So long you are sure of the mistakes and the business plan is clear, simply go into it. It is better to fail in business than to fail before starting a business.
3. Starting Business You Can’t Manage
You’re a student first before an entrepreneur. Inasmuch as you’re into business, you need not forget that you are a student too.
Don’t start a business that will take you away from school 100%. Students should begin with businesses that they can combine with schooling. After graduation, you can then invest more time in the business.
If necessary, you can get a helper to make the impact of business on your academics lighter. In essence, know your capacity.
4. Selling What You Want
Selling what you want is a bad business strategy. You are not doing business for yourself, rather you are meeting needs and wants of people. Your business should be centred on what your customers want and how your buyers want it.
Many students sell what they want and the way they want it without considering their audience. With this mindset, you may end up buying your own product. Listen to your buyers at every point in time.
5. Doing Business Blindly
Now, many student entrepreneurs do business they don’t even understand. Sometimes, they jump into business because others are going into it. This is wrong.
Before going into any business, take time to analyse it. Learn to be an expert in whatever you do. This is a key to success in business.
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6. Not Having Mentors
It doesn’t matter the business you are doing or the one you wish to go into. People are already doing this business and are successful. Meet them and get some keys to success and failure.
Mentors have all it takes to make your business journey 10 times smoother and 5 times easier. Mentors go a long way to make tough business decisions easier for you.
One thing you should understand about having mentors in your business is that your mentor’s weakness can become your weakness.
7. Expecting Friends and Family Support
Most times, your friends and family members will not like or even believe in your business idea. Expecting them to support your plan before going ahead is one of the biggest mistakes you would make.
Most of them won’t support you until you start getting results. In fact, friends and family will advise you to quit the business and focus on your studies for better grades.
It is your business, it is your idea, keep believing in yourself and keep pushing until you prove everyone wrong.
8. Borrowing Large Sum of Money
Motivational speakers will fail to tell you that not all business will succeed. According to research, 90% of business will fail.
While some businesses fail immediately, others fail after a short period of time. Borrowing a large sum of money to start business is a huge risk.
You must pay back the money even if the business fails. Even if you want to borrow, It shouldn’t be too big and let it be an addition to the money you already have.
9. Relying Only On Skill
For some students, if I am very good at web design, baking, Importation, etc that’s all. Ladies and Gentlemen, that is not all. You need more than a great cake baker or other skills you have to be successful in business.
There are other things you must learn. Examples are:
- Marketing your business
- Sales and Purchases
- How to relate to customers (HR)
- How to manage success and failure.
10. Worrying About Competitors
Many students worry too much about competition. This is very wrong. You need to understand that you are not the first person in the business and won’t be the last.
Competition will always come. Learn to adapt and let it bring out the best in your Business. Don’t let pressure and competitors force you out of business. Stand firm and remain outstanding.
11. Learn From Business Mistakes
Another mistake students entrepreneurs make is thinking they will have a perfect business career. Many students have not accepted the fact that it is possible for them to make mistakes.
No matter how smart you are or the volume of books you have covered to avoid business mistakes, you will experience certain challenges and mistakes in business. Learn from your mistakes and make sure they don’t repeat.
12. Desire to Get Rich Quick
Start a business in school with the mindset of getting rich quick is not recommended. Every good thing takes time and effort to manifest. The aim of business is to make money, but you need something more than money to get going.
13. Waiting to Start Big
You don’t need to have everything before you start doing business in school. Start where you are and with what you have.
If you are waiting to have all the money in the world before getting started, you may not even start in the first place. Start small and make your business great in the long run.
14. Doing Many Different Business Together
Many student entrepreneurs are eager to make money quick. Therefore, they try to jump into every business they hear about within a short period of time.
One way to fail in business is not concentrating your effort. Businesses need time to grow. Don’t conclude on a business that is just few weeks old.
15. Not Keeping Records
Many students do business without knowing how much they spend monthly, how much is remaining, their profits and losses. This is a terrible mistake in business.
Learn to keep records. Know when you are succeeding and when you are failing. Keep records so that you can take note of changes in business and predict the future.
Recommended: 35 Ways you can make money in school
16. Expecting Too Much
Many business students expect to blow within two months. Immediately the business idea makes sense to them, they conclude that millions will be coming out of the business immediately. This is not a good business plan.
Be patient and realistic when it comes to business. Starting a business is hard and you will experience up and downs.
17. Not Improving
One of the mistakes students make in business is not improving. Many students keep doing business the same way over and over again. It isn’t a crime but don’t expect different results.
As the business grows, you get to realise that the initial idea won’t work this time around. Don’t be scared to effect changes. Change is constant, therefore, give up the urge to remain the same.
18. Not Saving Money
Some times things will be rosy. Other times, things will get worse. When you make big gains, save some money for the bad days. Good saving habit is a great business skill you need as a student.
19. Listening to side Talks
The moment you tell friends or classmates about your business idea or current business, many of them will question it. People are going to tell you reasons the business will not grow. Don’t let these negative talks get to you. After all, it is your business and not theirs.
20. Not Getting Required Resources
Irrespective of the business you wish to jump into as a student, there are certain tools you need to work efficiently.
Don’t think of the money you will spend getting them (So long you have it) but think of the boost it will give to your business. Not getting the required resources is one of the mistakes students make in business.
Other Mistakes Students Make in Business
- Doing everyone alone even when help is needed
- Hiring people that you can’t fire
- Spending too much and unnecessarily
- Losing the trust of customers
- Failing to plan well
- Not having a target audience
- Quitting businesses too fast
- Inconsistency in Quality
- Not seeking help
- Not hanging out with like-minded people
30 Common Mistakes students make in business and solutions. Hope you found this helpful? Feel free to share with your friends and don’t fail to let me know how you feel using the comment box.