Top Business Mistakes to Avoid: My True Story of Success and Failure

What You Should and Shouldn’t Do When Starting a Business: Lessons from My Real-Life Journey in Nagpur

Starting a business in your early 20s sounds like a dream. For me, it was real. In 2012, as a young engineering student in Nagpur, Maharashtra, I launched a building material supply business. With zero experience but immense passion and communication skills, I jumped into the world of entrepreneurship.

The venture was profitable, exciting, and full of learnings. However, by 2015, it had to shut down. Why? Not because of competition or funding issues—but due to poor planning, unclear goals, and the lack of a long-term vision.

In this post, I’m sharing my first-hand business experience, key lessons, and expert advice on what you must do and what you should avoid while running a business. Whether you're launching a startup, small business, or side hustle, this guide will help you build sustainably.

My Story: The Beginning of a Business Without a Blueprint

In 2012, I was pursuing Electronics & Telecommunication Engineering in Nagpur. While most students focused on coding and campus placements, I felt a strong pull toward real-world interaction and direct communication. I’ve always had a natural flair for talking to people, building rapport, and convincing clients. That communication edge led me into business.

Together with a local partner, I started a building material supply business, supplying cement, bricks, sand, and other construction essentials. I had no MBA, no business background, and no capital. Just vision and voice.

Surprisingly, the business clicked. We got consistent orders, I managed client relationships, and we grew. By 2014, we had developed a strong customer base across construction sites in Nagpur.

But then came the fall.

Why My Business Failed: Hard Truths I Learned

Even though we were making profits, the business collapsed by 2015. These are the real reasons why:

No Clear Business Model

We never defined our business model. Were we B2B? B2C? What were our profit margins, operational costs, or customer acquisition strategies? We didn’t know. We just worked day-to-day.

Lesson: Never start a business without a clear and scalable business model.

No Defined Goals or Milestones

We lacked SMART goals. There were no KPIs, quarterly reviews, or sales targets. That made it hard to measure success or identify red flags.

Lesson: Goals give direction. Without them, you’ll drift even when you’re afloat.

Ignoring Legal and Regulatory Compliance

We didn’t register properly, nor did we focus on tax compliance. When government regulations tightened in 2015, we couldn’t adapt fast enough and had to exit.

Lesson: Understand the legal landscape of your business domain.

No Documentation or Processes

We never documented client transactions, vendor agreements, or financial records properly. This created chaos when disputes or audits arose.

Lesson: Systems and documentation are the backbones of a professional business.

No Exit or Transition Plan

When I had to move back to my hometown due to family reasons, there was no backup. The business couldn’t survive without me.

Lesson: Always build systems that work without you.

What You MUST Do While Starting a Business

Here’s what I recommend every aspiring entrepreneur must do—based on both my past failure and present expertise in business strategy.

Develop a Clear Business Model

Choose the right business model that fits your product, market, and resources.

Ask:

• Who is my ideal customer?
• What value am I offering?
• How will I make money?
• What are my cost structures and revenue streams?

Use frameworks like Lean Canvas or Business Model Canvas to visualize and validate your model.

Set SMART Goals and Track KPIs

Define:

• Monthly Revenue Targets
• Customer Acquisition Goals
• Retention Metrics
• Operational Efficiency Benchmarks

Use tools like Google Sheets, Notion, or CRM dashboards to track these regularly.

Build an Online Presence Early

Even if your business is offline, like my material supply business was, a strong digital presence boosts credibility and reach.

• Create a website using Blogger, WordPress, or Wix.
• Optimize it for SEO.
• Get listed on Google My Business.
• Share testimonials and case studies.

Pro Tip: Having an online brand builds long-term value and trust.

Understand Government Rules & Legal Compliance

Depending on your business:

• Get GST registration.
• Register your business as a sole proprietorship, partnership, or Pvt. Ltd.
• Maintain TDS, income tax, and other regulatory compliance.

Don’t ignore paperwork. It can make or break your business in future.

Build a Reliable Team or Automate

Don’t be the only engine in your business. Hire a small team or automate your operations using tools like:

• Zoho or Tally for accounting
• WhatsApp Business for customer support
• Google Forms for order collection
• ChatGPT for writing and customer response

Plan for Growth and Scale

Start small but plan big. Once your core product-market fit is achieved, think of:

• Expansion to new cities
• Franchise models
• Online selling
• Diversification of services

You don’t grow when you’re comfortable. You grow when you’re structured.

Invest in Continuous Learning

Read books, take courses, and follow successful entrepreneurs. Build your financial literacy, understand customer psychology, and master digital marketing.

Build Business with Vision, Not Just Passion

Passion drives the start, but vision sustains the journey. Here’s what I now believe every entrepreneur should internalize:

You don’t need huge capital, but you need clarity.

You don’t need fancy degrees, but you need discipline.

You don’t need big teams, but you need systems.

Treat your business like a living system—it needs structure, nourishment, and direction to grow.

Final Thoughts: Failures Are Not the End, They’re Feedback

Yes, my first business failed. But the experience gave me priceless lessons that no MBA could teach.

Today, I apply those learnings in everything I do—whether in digital strategy, client communication, or personal branding.

If you’re starting your first business:

Learn from my story.

Avoid the mistakes I made.

Follow the proven steps I shared above.

And most importantly—start today, but start wisely.

Share Your Thoughts

Have you started a business and faced challenges? Or are you planning to launch soon?

Comment below or DM me your story—I’d love to hear and help!

Bonus: Checklist for First-Time Entrepreneurs

| Task | Status |

| Define your business model | ☐ |

| Set clear 3-month and 1-year goals | ☐ |

| Register your business legally | ☐ |

| Open a business bank account | ☐ |

| Track your finances weekly | ☐ |

| Create a Google My Business page | ☐ |

| Start a blog or website | ☐ |

| Automate at least one process | ☐ |

| Learn about SEO and branding | ☐ |

| Join a local business community | ☐ |

About Me:

I’m Rakesh Men, a business enthusiast who started a building material supply venture during college in Nagpur. While the business didn’t survive long-term, the lessons I gained now power my efforts in business consulting, content creation, and helping others avoid common startup mistakes.