mistakes – Bada Business

3 Common Mistakes every Beginner should avoid while investing in Stocks

Piyush, who is an architect by profession, has always invested in schemes that are risk-free. Recently, his friend Hemant told him about his income generated through Mutual Funds. Piyush decided to take a shot at mutual funds.

Piyush replicated his friend`s portfolio and invested his money. To his disappointment, Piyush did not make as much money as his friend did. He also suffered losses. So what could be the reason behind Hemant making a profit in the same scheme, while Piyush suffered losses?

Piyush committed one mistake while investing in stocks that most Indians make. However, it is better to understand these mistakes initially to prevent losses in the future.

Here is a list of some of the most common mistakes that everyone must avoid while investing in stocks:

Lack of Planning

Seasoned investors play their game in the market based on facts and figures. However, this is where a beginner can go wrong. Guessing and blindly investing in stocks might appear to be performing well. However, the absence of proper planning and vague end goals can result in a chaotic mess. Always check the financial data of the company you are planning to invest in and then make informed decisions.

Decision-based on Personal Bias

Being biased can never be beneficial, be it any aspect of life. And the stock market is no exception! Many beginners or first-time investors tend to either buy only companies that are known or the companies they like.

This is not the best way to invest your money in the stock market. The companies you like or know may not be performing well. This way you can also risk your profile or your financial goals.

Short Term Focus

If you have a notion in your mind that investing in the stock market will make you rich quickly then this is another mistake that you must avoid. Having a short-term goal can leave a huge impact on your investment decisions. Avoid taking rash and uninformed decisions as it can likely result in losses.

These three mistakes are the most common ones that every first-time investor makes initially. Trading in investing and equity in the financial markets requires in-depth knowledge of the stock market.

5 Mistakes Which Startups Should Avoid While Starting a Business

Starting a business is not an easy job. There are a lot of things that need to fall into place. You may have the right idea, but lack in marketing it, therefore there several crucial decision that needs to be made while running a business. More caution needs to be exercised especially if your business is small and it is a startup.

One poor decision can hurt the potential for success, or at least set you back. While there is no fool-proof plan for success, but there are some commonly committed mistakes, which can be avoided. Here are 5 mistakes, which startups and small businesses need to avoid at any cost.

Not Having a Plan

Small companies often fail to make a mark because they lack a proper plan. Planning may be tedious, but without a solid plan for your business that includes business idea research and market potential, you will be operating in the dark.

Lack of Market Understanding

When you launch in the market, you need to have a proper understanding of the space where you are working, including the competition. Never underestimate your competition and analyse their strengths and weakness wisely.

Hiring More Than Required

Never do this mistake of hiring more employees than what is required. Based on the budget allocated for a particular profile, companies should never hire more resources than what is required. One needs to remember that it is a small company and the resources are limited. Companies often make the mistake of hiring more than what is required and then they end up firing them.

Spending Too Quickly:

The most important thing which startups and small businesses should keep in mind is to spend wisely. In the initial few days, one might see that investing money is giving good returns, which might prompt them to spend more. However, there should be planning and based on which, companies should spend.

Planning only for success:

It is very important to be prepared for failure. What will happen tomorrow is not known to anyone. There can be a lot of factors that can hinder the growth of a business. For e.g, the coronavirus pandemic has caused several businesses to wind up. At the start of this year, no one could foresee that the pandemic would take such an immense scale which would make the economy dwindle. So don’t start a business, buy planning only for success. There will be times, and days when things will not go as per the way you want. So be prepared for it.