The growth of an economy and job opportunities largely depends on people’s ability to identify and exploit market niches. A successful business venture can generate profit and achieve growth. For first-time entrepreneurs, proper planning and understanding of the product you intend to offer and the market dynamic are crucial to business success. Research reveals that lack of in-depth market analysis causes 50-70 percent of the start-up to fail within the first and half years of their operations. Investors should understand all the business risks and plan how to address them before they invest. Here are common mistakes first-time entrepreneurs make leading to business failure.

Hiring Mistakes

Labor is the most crucial component for the productivity of the business. Getting employees with the requisite skills on board can define the trajectory of your business. First-time employees lack the knowledge of the hiring process and are likely to hire employees based on their salary demands. Although the move results in potential cost savings in the short term, the overall business performance becomes negatively affected as employees lack the experience and skills needed to spur business growth.