According to Sebrae data, approximately 30% of Brazilian companies close their doors before completing two years of operation. Behind these statistics are mistakes 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 miscalculated decisions. I’ve been there, making basic mistakes that hurt my first businesses,’ he recalls.
Eduardo shares that in the early years, there was a lack of mentors, references, and especially access to real stories of failures. ‘We only hear about success cases, 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 decisions. 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 states.
4 mistakes beginner entrepreneurs should avoid
With over 2,185 operating stores and more than 600 franchisees spread across 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 was born precisely from the ability to identify a real consumer need—something that, according to Eduardo, many entrepreneurs neglect when starting their journey.
Below, the CEO lists the four most common mistakes he experienced firsthand that can jeopardize the success of any new business:
1 – Starting a business just because you like it
One of the most widespread pieces of advice in the entrepreneurial world is ‘follow your passion,’ but according to Eduardo, this can be a trap when the business’s viability isn’t considered. In this context, he explains that while working with something you enjoy is important, it’s essential to validate whether the idea solves a real pain point, if there’s an audience willing to pay for it, and if it’s scalable. Otherwise, the entrepreneur risks building a business that only makes sense to them—not the market. ‘Doing what you love is no guarantee of success. You need to align passion with the market’s real demand. The secret lies in solving people’s concrete problems,’ he says.
2 – Choosing businesses with no barriers to entry
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. Barriers to entry can be technology, logistics, know-how, business model, scale, or even a strong brand. In market4u’s case, for example, the combination of proprietary technology, efficient operations, and a structured franchise network created a barrier that makes it difficult for other players to replicate the model. ‘You open a snack bar, start doing well, and soon three competitors pop up on the same street. If there’s nothing that truly sets you apart, the market will swallow you,’ Eduardo warns.
3 – Not having a clear differentiator
In the business world, being ‘good’ isn’t enough—you need to be perceived as the best choice. A clear differentiator can lie in customer service, delivery, personalization, innovation, or even the brand’s purpose. What matters is that it’s recognized and valued by the target audience. There’s no point in having a unique proposition if it isn’t communicated well. ‘If the customer doesn’t understand why they should choose your business, they’ll choose the cheapest or the most familiar one. Without positioning, you’re just another option. It’s crucial to know what makes you unique and communicate that clearly,’ the CEO emphasizes.
4 – Entering a market without understanding it
Starting a business in a sector you don’t deeply understand is like navigating without a map. Often, initial enthusiasm leads entrepreneurs to overlook the segment’s complexity. At this stage, knowing the market’s particularities, consumer habits, profit margins, risks, and operational requirements is essential to avoid rash decisions. This preparation reduces risks and increases the chances of building something solid from the start. ‘Before investing, study the sector, analyze competitors, talk to those already in the field, and assess whether you have the necessary skills. And if you don’t, bring someone with that knowledge to partner with you,’ Eduardo recommends.
