Time flies! It’s hard to believe that LLA is almost seven years old. We’ve learned so much since we first started out, and we’ve definitely had our fair share of bumps in the road, which we coined as – 5 Mistakes of Early Entrepreneurs.
We’ve made some pretty big mistakes along the way – there were times when we thought we might have to throw in the towel. But we refused to give up on our dream of creating the best Labour Law Advisor channel in India.
Thankfully, we were able to pull through with hard work, a little luck, and support from our fantastic community. We’re more determined than ever to make LLA the go-to resource & platform for navigating the complexities of Indian labour law.
Here, we’ll share the 5 mistakes for early entrepreneurs that can lead to adverse results. This blog post is handy for someone who has a startup or is about to launch one. And even if a startup is a distant dream for you right now, you should still stick through because, in the words of India’s most popular guru, Chanakya-
“He who does not learn from his own mistakes is foolish, and he who learns from the mistakes of others is wise.”
Table of Contents
5 Mistakes for Early Entrepreneurs
Mistake – 1: Ignoring Compliance and Accounting
Back in the early days, LLA was just Rishabh Jain and Mandeep, fuelled by passion and a shared dream. After two years, they brought on an editor to help them ramp up content creation. The focus was laser-sharp: create fantastic content, attract clients, and grow.
But amidst the excitement, something crucial slipped through the cracks – Compliance and Accounting. Rishabh and Mandeep had a joint bank account, and that was about it. GST? It was completely off our radar.
Now, here’s the thing: If you’re a service-based business in India with a turnover of Rs 20 lakhs, GST isn’t mandatory (Rs 40 lakhs for others). For our first two years, we were well below that. But then things took off, and we surpassed Rs 20 Lakhs mid-year without realizing it.
Unfortunately, this lack of accounting diligence led to a hefty GST bill – close to Rs 8 Lakhs! Money that came straight out of our pockets, because we hadn’t been collecting GST from our clients.
Lesson Learned
| Never underestimate the importance of accounting and compliance. Even if you’re starting small, hire a part-time accountant. There are at least 6-7 compliance matters you absolutely need to stay on top of. This early setback was a wake-up call. We realized that a solid foundation isn’t just about passion and hustle – it’s about understanding the rules of and playing by them. So, if you’re an aspiring entrepreneur, take it from us – don’t repeat this one of the biggest 5 mistakes of early entrepreneurs. Embrace accounting and compliance from the get-go. It’s an investment that will pay off in the long run and save you from unnecessary headaches down the road. |
Mistake – 2: Missing Out on Web Presence
The second mistake out of the 5 mistakes of early entrepreneurs was that we dove headfirst into YouTube, crafting informative videos left and right. But amidst the frenzy, a crucial piece was missing: a solid web presence. We started blogging on an old site, but it soon became clear we needed a parent entity. That’s when “Wit Box” was born, complete with a shiny new domain and official emails. But we got so caught up in the excitement, we forgot to actually build the website!
Instead, we impulsively purchased labourlawadvisor.in, then created multiple domains and websites for different aspects of our business. Managing this tangled web became a nightmare, prompting yet another domain purchase: lla.in.
Right now, we’re in the throes of a costly migration, consolidating everything under lla.in. The struggle is real, especially since we’re not tech whizzes. And speaking of struggles, our lack of tech expertise left our website vulnerable to hackers, resulting in sky-high Amazon bills. It took us eight gruelling months to unravel the mess.
If You’re Starting Out, Take Our Advice
| Don’t let this happen to you. Consider using a platform like Odoo, which streamlines website management and offers robust security features. Learn from these 5 mistakes for early entrepreneurs, and prioritize a strong and secure web presence from the get-go. |
Mistake – 3: Ignoring The Power of a Dedicated Space
The early days of LLA were a whirlwind of passion and hustle. This is when we made the third big mistake out of the 5 big mistakes made by early entrepreneurs- not getting a dedicated workspace. We launched in 2017, working part-time from the comfort of our homes. It wasn’t until 2019 that we finally took the plunge and got our very own office space.
That move changed everything. It was the first time Mandeep had a dedicated workspace, and the results were immediate. Our turnover skyrocketed, and we could finally attract the talent we needed to grow. Before, potential hires felt hesitant when they saw we were operating out of a house. Having a dedicated office gave us the legitimacy and professional environment we needed to thrive.
Lesson Learned
| Now, we’re not saying you need to go all out and lease a luxury suite. However, having a dedicated space, even a small one, is crucial for early entrepreneurs. It creates a clear separation between work and personal life, helps you stay focused and productive, and signals to clients and employees that you’re serious about your business. So, if you’re starting out, don’t underestimate the power of your workspace. It could be the key to unlocking your next level of success. And remember, every entrepreneur journey begins with a single step. So take that leap, find your space, and let your entrepreneurial spirit soar. |
Mistake – 4: Don’t Get Buried Under Your Own Success
Remember those early days when passion fuelled every move and every byte of data? Well, we do! Our 2TB storage quickly became a chaotic mess of videos, SOPs, courses, and more. It became a time-sucking black hole that hindered our ability to create our envisioned enriching content.
That’s when we discovered the magic of productivity tools. These lifesavers not only brought order to our data but also freed up valuable time for us to concentrate on what matters – creating content that resonates with our audience.
But we didn’t stop there. We took a leap of faith and invested in a NAS (Network Attached Storage) system, transforming how we managed and accessed our crucial files and data. This move not only streamlined our operations but also taught us a valuable lesson: reinvesting revenue into the business is critical to sustainable growth.
So, Here’s Our Advice to Fellow Entrepreneurs
| Embrace productivity tools. They’re not just expenses; they’re investments that pay off in spades. They’ll help you save time and money, allowing you to channel your energy into building a thriving business. Here’s a quick roadmap to navigate the early entrepreneurial journey: – Break Down Tasks: Divide your workload into smaller, manageable projects. – Habit-Based Processes: Don’t rely solely on motivation; create processes that become ingrained habits. – Set Deadlines: Establish clear deadlines for each project. – Adapt and Revise: If a project isn’t completed on time, analyze what went wrong and revise your deadlines for better results next time. By following these steps and embracing technology, you’ll be well on your way to conquering the challenges that often derail early entrepreneurs. Remember, learning from these top 5 mistakes of early entrepreneurs is a crucial part of the entrepreneurial journey. |
Mistake – 5: Don’t Be Afraid to Evolve (5 Mistakes for Early Entrepreneurs)
In the early days of LLA, we focused on a single niche. But over time, we discovered the power of diversifying our content. Through trial and error and a deep understanding of our audience’s needs, we evolved into four major categories:
- Labour Law and Law Awareness,
- Personal Finance,
- Taxation, and
- Scam Awareness
This evolution wasn’t a mistake; it was a breakthrough. It’s a reminder that entrepreneurs shouldn’t be afraid to experiment and adapt. Look at YouTube, Instagram, and Netflix—they all started with a different vision and pivoted into the giants they are today.
The Lesson Here
| Don’t get stuck in a rut. Embrace the possibility of change. Keep your finger on the pulse of your audience and be willing to expand your horizons. Who knows, that next pivot could be the key to unlocking your business’s full potential. So, if you’re an early entrepreneur feeling confined by your initial niche, remember that exploring different avenues is okay. Embrace the journey, learn from your experience & audience, and don’t be afraid to try new things. Your next big idea might just be waiting around the corner. |
FAQs: 5 Mistakes for Early Entrepreneurs
- What are the biggest mistakes made by entrepreneurs?
Common mistakes include:
- Underestimating the importance of a dedicated workspace.
- Neglecting the team mindset.
- Overspending on luxury.
- Delaying the transition to a professional environment.
- What are 5 challenges that may be experienced by a new entrepreneur?
Some of the biggest challenges faced by a new entrepreneur are-
Securing funding
Building a team
Marketing and sales
Managing finances
Adapting to change
- What are the solutions to problems of entrepreneurs?
The solutions to entrepreneurs’ problems vary, depending on many factors. However, some prominent solutions include thorough planning, seeking mentorship, networking, continuous learning, and adapting to feedback.
- What are 4 mistakes startups typically make?
Four mistakes made by startups include-
Not understanding the target market
Poor financial management
Inadequate marketing
Lack of focus
- Why do 90% of startups fail?
Startups often fail due to a combination of factors, including lack of market need, poor team dynamics, running out of cash, and getting out-competed.
| “Imagine this: GST is like having three report cards due every year – monthly, quarterly, and annually. Even if you didn’t make any sales, you still have to turn in a blank one. Forget to do it, and you’re looking at a Rs 20 penalty for each day you’re late! Before starting LLA, back when I was running my handicraft business, I completely dropped the ball on this. I missed filing for almost two whole years! Talk about a huge mess. But, thankfully, in 2019, there was this 15-day grace period. I took full advantage of it and crammed in all 24 missing returns in a single day. It was a stressful day, but it ended up saving me a fortune.!” |
