Mistakes that sink businesses and that beginning entrepreneurs should avoid

According to Sebrae data, approximately 30% of Brazilian companies close their doors before completing two years of activity. Behind these statistics, there are errors that could be avoided with more preparation, self-knowledge and strategic vision. Although the market values success stories, little is said about the stumbles that often determine the future of a business.

Eduardo Cordova, CEO of market4u, explains that undertaking is, above all, an act of courage, but also of constant learning, and that at the beginning of the journey, mistakes can be expensive. “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 ill-calculated decisions. I have already been there, making basic mistakes that harmed my first business”, he recalls.

Eduardo says that in the first years, mentors, references and, mainly, access to real stories of failures were missing. “We only listen to success cases, but nobody talks about the tumbos. And it was precisely the tumbos that taught me what really matters: understanding the market, knowing how to listen and, above all, not letting the ego guide the choices. Undertaking is a continuous process of trial, error and adaptation and in this process, learning from one's own mistakes is inevitable, but learning from the mistakes of others is a huge advantage”, he says.

4 Mistakes that beginning entrepreneurs should avoid

With more than 2,185 stores in operation and more than 600 franchisees spread throughout Brazil, market4u has consolidated 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.

The CEO then lists the four most common mistakes he has experienced in practice that can compromise the success of any new business:

1 'Empreender only for what you like
One of the most widespread advice in the world of entrepreneurship is “follow your passion”, but, according to Eduardo, this can be a trap when you do not take into account the viability of the business.In this context, he explains that, as much as working with something you like is important, it is essential to validate if this idea solves real pain, if there is a public willing to pay for it and if it is possible to scale. Otherwise, the entrepreneur risks setting up a business that only makes sense for himself, and not for the market.“Doing what you love is no guarantee of success. It is necessary to align passion with the real demand of the market. The secret is in solving problems.

2 'Seeing deals without barrier of entry
The ease of starting a business can be illusory.The simpler it is to replicate an idea, the greater the competition in a short time. Barriers to entry can be technology, logistics, know-how, business model, scale or even strong brand. In the case of market4u, for example, the combination of proprietary technology, efficient operation and structured franchise network created a barrier that makes it difficult for other players to replicate the model. “You set up a cafeteria, start going well and soon three competitors appear on the same street. If there is nothing that really differentiates you, the market swallows”, Eduardo warns.

3 'Do not have a clear differential
In the business world, being “bom” is not enough, it is necessary to be perceived as the best choice. A clear differential can be in service, delivery, customization, innovation or even the purpose of the brand. The important thing is that it is perceived and valued by the target audience. It is useless to have a unique proposal if it is not well communicated. “If the customer does not understand why they should choose their business, they will choose the cheapest or the best known. Without positioning, you are just one more. It is essential to know what makes you unique, and communicate this clearly”, emphasizes the CEO.

4 'Enter a market without knowing it
Undertaking in a sector that is deeply unknown is like navigating without a map. Often, the initial enthusiasm makes the entrepreneur ignore the complexity of the segment. At this point, knowing the particularities of the market, consumer habits, profit margins, risks and operational requirements is fundamental 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 who already work in the area and assess whether you have the necessary skills. And if you do not, bring someone with this knowledge to undertake together with you”, recommends Eduardo.