7 mistakes to avoid when starting a business

While nearly 1 in 3 French people plan to create or take over a business, Le Figaro sets you up the 7 traps to avoid in order to be successful in setting up a business.

Getting into entrepreneurship is attracting more and more people … According to the latest barometer conducted in January 2020 by Opinionway for the Salon des Entrepreneurs de Paris, nearly 1 in 3 French people plan to create or take over a business. However, becoming a business leader is not an easy task and for an entrepreneurial adventure to be successful, there are certain mistakes to be avoided.

Mistake # 1. Choose entrepreneurship to no longer have a boss

According to the second edition of the French Entrepreneurial Index, carried out by Agence France entrepreneur in 2018, 49% of French people who want to start their business or take over one are motivated by the desire to be independent and to be their own boss. “The problem with this view is that it is partially wrong. Indeed, if the company grows, the entrepreneur will surely be led to raise funds, to recruit managers who will become his equal in the Executive Committee of the company.», Emphasizes Pauline Roux, Partner in the French investment fund Elaia. The business manager is then no longer totally alone at the helm.

Thibaud Elziere, founder of the start-up studio eFounders, continues: “ The entrepreneur will not have a leader, strictly speaking, but when we raise funds, we are accountable to ourselves, we put some pressure on ourselves because we commit morally over 2 or 3 years to do whatever is possible to be successful. »

# 2. Create a business alone

According to figures published by INSEE on entrepreneurs for 2018, setting up a business is often a solitary process: two out of three creators are alone at the origin of their project. And yet, it would be better to embark on the adventure together, according to Pauline Roux, of Elaia. “In entrepreneurship, the workload is very high, you have to have the shoulders to succeed in doing it alone. In addition, “solo” entrepreneurs have less ability to be challenged on their ideas.».

# 3. Getting into entrepreneurship for the money

According to the study by Agence France entrepreneur, 35% of people wishing to embark on entrepreneurship would do so in particular to earn more money. And yet, according to eFounders’ Thibaud Elziere, successful entrepreneurs weren’t just motivated by money issues: “To succeed in your entrepreneurial adventure, you must above all be passionate about your subject, your product or your market, but not be obsessed with money.», He assures us.

# 4. Keep your idea to yourself

Even though entrepreneurs keep repeating that it’s important to share your idea to get feedback, some still want to keep their idea a secret so as not to risk seeing it used. “The likelihood that a person will hear about this idea and choose the same time to start entrepreneurship is very low. The entrepreneur has much more to gain from sharing it and getting advice and opinions from it.», Claims the founder of eFounders.

# 5. Don’t listen to advice

«Many entrepreneurs do not include listening in their leadership role. They think that since they are running the business, they know how to do it. It is regrettable», Deplores Pauline Roux. However, it is essential to listen to the advice of entrepreneurs who have already gone through these stages of business creation or professionals in the sector who have some knowledge of entrepreneurship and its different stages.

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# 6. Botched recruitment

«A large majority of entrepreneurs overestimate their ability to recruit well and underestimate the money it takes to invest to recruit real talent“, Highlights Thibaud Elziere. In particular, it is essential to structure the recruitment process by precisely defining the duties of the position and the qualities required in order to analyze whether the candidate really has them. Having recourse to a recruitment professional can be a solution to be accompanied in this task.

Recruiting a few senior profiles can also be essential for the development of the company. “It is important to give a few big salaries to recruit people who can help the company to set up processes and have a longer term vision thanks to their past experience.», Declares Pauline Roux d’Elaia.

# 7. Consider fundraising as an end goal

The French start-ups have already raised 5.4 billion dollars (approximately 4.5 billion euros) over the first six months of 2021. But entrepreneurship does not necessarily rhyme with fundraising. “It should be remembered that when raising funds, the ultimate goal is for the business to be sold. This does not necessarily correspond to the envy of all business leaders», Declares Pauline Roux.

And even when entrepreneurs want to use this financial tool to expand internationally, fundraising should not be seen as an end in itself but as a means to develop. “We see some entrepreneurs who are more motivated by the fact of raising funds and having a good valuation than by the development of their company as such.», Regrets the founder of eFounders.

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