The dream of getting rich quick drives many young people and entrepreneurs to rush to establish small businesses. Launching small businesses is not easy, as it requires making fateful decisions based on carefully executed information and feasibility studies.

Excessive ambition or ill-considered ideas may cause wrong decisions to harm the project, and through the following report we review the most important and famous mistakes that entrepreneurs make in establishing their companies.

Forbes published a report written by John Nelson in which he talked about the most famous mistakes of entrepreneurs, and stressed that pressures and responsibilities in making hasty decisions can harm your success or at least undermine your efforts.

At the beginning of the report, the author refers to Einstein's famous saying, "Madness is about repeating the same thing and expecting a different result," so before you take your first step in establishing your project, you must learn from the mistakes of those who preceded you in order to warn them and avoid the consequences suffered by those who fell into them.

Make sure this won't protect you from getting into any trouble, but at least it will reduce the size of the problems you might have, he says.

Figures and statistics show that about 90% of startups fail within the first two years of their inception, 29% due to problems due to lack of funding, 23% due to lack of a suitable team, 17% due to lack of a sustainable business model, and 46% of startups stopped working due to lack of a market for the product or service they provide.

Good planning puts your project on the brink of success (Shutterstock)

The report identified the most prominent and important mistakes made by emerging entrepreneurs as follows:

Failure to prepare a detailed action plan

Good planning puts your project on the doors of success, and the business plan is the most important element in any emerging project, as it determines the necessary goals and resources, and one of the most famous mistakes is to start a project without a detailed business plan that contains all the financial and marketing items, studies and market research.

A detailed action plan will protect you from any surprises and enable you to make the most of opportunities.

Trusting intuition

Big startups like Twitter, Instagram, and Pinterest relied on the creators' intuition and trust in their ideas, but don't let your intuition lead you into the unknown.

You should make sure through feasibility studies that someone is willing to pay money to adopt your ideas or to get your product or services.

Relying on intuition, without carrying out the necessary feasibility studies, may be the fastest path to failure.

Not allocating the budget correctly

Allocating the right budget is the most important element when starting a startup, and relying on inaccurate estimates certainly reduces the chances of success.

So you must have a clear and specific perception of the expected costs, expenses and income.

The entrepreneur website published a report written by Juana Rodriguez in which she talked about the most common mistakes that entrepreneurs make when establishing their new projects, the most important of which are the following:

Failure to respond to changes in the market

The entrepreneur must realize that market changes are fast, and his plan must be flexible enough to adapt to these changes, so the entrepreneur must be very aware of all market developments.

Periodic evaluation of the project helps to identify weaknesses and work to develop and improve them (Shutterstock)

Superman

An entrepreneur often feels that he is the best at many tasks, and in fact this is not true. Hire specialists in all fields.

Underestimating the importance of thinking about the competitor

No matter how unique your project idea is, there must be a competitor, and studying the characteristics of the competitor and understanding the mechanisms of superiority over him is one of the most important features of success.

Quick withdrawal after loss

The first year is always the most difficult in the life of any startup, and one of the most famous reasons for quick loss is the misunderstanding of the exit decision as the most appropriate solution before suffering more losses without benefit.

Any small project needs patience, and perhaps the most prominent example of this is the Walt Disney International Company, which went bankrupt only two years after its inception, but today it is one of the largest international companies.

Wrong hiring decisions

The most important reason that leads to wrong hiring decisions is reliance on personal relationships, so it is better for you to use a professional in human resources, even temporarily, to make sound hiring decisions and track employee performance later.

Failure to identify sources of funding

Common mistakes include not identifying funding sources correctly, relying on wrong funding sources or inaccurate project cost estimates.

Failure to evaluate performance periodically

Evaluating the project periodically helps in identifying weaknesses and working to develop and improve them adequately, and it is a common mistake not to take advantage of these evaluations to improve project performance and avoid mistakes in the future.