According to Sebrae data, approximately 30% of Brazilian companies close their doors before completing two years of activity. Behind these statistics are errors that could be avoided with more preparation, self-awareness, and strategic vision. Although the market values success stories, little is said about the stumbles that often determine the future of a business.
Eduardo Córdova, CEO of market4u, explains that entrepreneurship is, above all, an act of courage, but also of constant learning, and that at the beginning of the journey, mistakes can be costly. “The entrepreneurial journey requires emotional preparation, resilience, and a good dose of humility to recognize that not everything will go as planned. The beginning is lonely, full of doubts and poorly calculated decisions. I’ve been there, making basic mistakes that harmed my first businesses,” he recalls.
Eduardo says that in the first years, there was a lack of mentors, references, and, mainly, access to real stories of failures. “We only hear about the success stories, but no one talks about the falls. And it was precisely the falls that taught me what really matters: understanding the market, knowing how to listen, and above all, not letting ego guide choices. Entrepreneurship is a continuous process of trial, error, and adaptation, and in this process, learning from your own mistakes is inevitable, but learning from others’ mistakes is a huge advantage,” he affirms.
4 errors that novice entrepreneurs should avoid
With more than 2,185 stores in operation and over 600 franchisees spread throughout Brazil, market4u has established itself as the largest network of autonomous markets in Latin America, offering an innovative convenience solution within residential and corporate condominiums. This business model emerged precisely from the ability to identify a real consumer need, something that, according to Eduardo, many entrepreneurs overlook when starting their journey.
Next, the CEO lists the four most common mistakes he has experienced in practice that can compromise the success of any new business:
1 – Venturing out just for what you like
One of the most widely disseminated pieces of advice in the entrepreneurial universe is ‘follow your passion,’ but, according to Eduardo, this can be a trap when the business feasibility is not taken into account. In this context, he explains that, as important as working with something you like is, it is essential to validate whether this idea solves a real pain, if there is an audience willing to pay for it, and if it is possible to scale. Otherwise, the entrepreneur risks creating a business that only makes sense to himself, and not to the market. ‘Doing what you love is not a guarantee of success. You need to align passion with the real market demand. The secret lies in solving concrete problems for people,’ he states.
2 – Choose businesses without entry barriers
The ease of starting a business can be illusory. The simpler it is to replicate an idea, the greater the competition will be in no time. Entry barriers can be technology, logistics, know-how, business model, scale, or even a strong brand. In the case of market4u, for example, the combination of proprietary technology, efficient operation, and a structured franchisee network created a barrier that hinders the replication of the model by other players. ‘You set up a snack bar, start doing well and soon three competitors emerge on the same street. If you do not have something that truly differentiates you, the market will swallow you,’ warns Eduardo.
3 – Not having a clear differential
In the business world, being ‘good’ is not enough; you need to be perceived as the best choice. A clear differential can be in customer service, delivery, customization, innovation, or even in the brand’s purpose. The important thing is that it is perceived and valued by the target audience. It is pointless to have a unique proposition if it is not well communicated. ‘If the customer does not understand why they should choose your business, they will choose the cheapest or the most well-known. Without positioning, you are just another one. It is essential to know what makes you unique and communicate that clearly,’ emphasizes the CEO.
4 – Entering a market without knowing it
Entrepreneurship in a sector that is deeply unfamiliar is like navigating without a map. Often, the initial enthusiasm makes the entrepreneur overlook the complexity of the segment. At this point, understanding the market’s specificities, consumer habits, profit margins, risks, and operational requirements is crucial to avoid hasty decisions. This preparation reduces risks and increases the chances of creating something solid from the beginning. “Before investing, study the sector, analyze competitors, talk to those already working in the area, and assess if you have the necessary skills. And if you don’t, bring someone with that knowledge to start a business with you,” recommends Eduardo.
