|Aug 20, 2008 1:00 pm
||16 deadly startup business blunders
| Earl Sigmund
|| Every person who works for someone else in today’s business world dreams about someday owning their own business. This so-called “entrepreneurial itch” peaks during times of job-stress or unexpected home pressures that help make up the adventure that we call life. Recent studies show that 50% workers are “unhappy” in their current job and long for a business to call their own.
The passion to start a business on your own is tempered by the natural fear factor of failure which grips the mind of every would-be entrepreneur. Nobody likes to fail ……….and fail you will if you don’t properly plan your escape route from your “employee prison”.
After working with thousands of businesses over more than 30 years, I have identified what I call the “sweet sixteen” most common blunders made by entrepreneurs in starting their own businesses.
Avoid these blunders, beat the odds, and go live your dream:
Blunder # 1: Choosing a type of Business that you do not Truly Like – but others make money in it. This is actually a lot more important than running out of money.
Blunder # 2: Failure to find your Niche (eg: Selling an identical product or service that the large chain stores sell)
Blunder # 3: Underestimating the initial total Capital Investment required to get the
business off the ground
Blunder # 4: Failure to have a Realistic Written Business Plan drawn up at startup with realistic sales projections.
Blunder # 5: Failure to set up a Workable Referral Network prior to opening the business- a free sales force for your business
Blunder # 6: Under-Pricing your product or service
Blunder # 7: Lack of Outsourcing of some business functions to others…hire a clone quick!
Blunder # 8: Misclassifying Employees as Subcontractors
Blunder # 9: Insufficient time and funds spent on Marketing & Selling your product or service
Blunder # 10: Under-Insuring and/or failure to incorporate or set up a LLC entity structure
Blunder # 11: Physically Over-working- the all work / no play concept
Blunder # 12: Failure to inform people who care about you that your work hours and work habits will drastically change and obtaining their acceptance of the situation
Blunder # 13: Spending too much on Equipment & Overhead
Blunder # 14: Lack of knowledge of tax laws & local regulations
Blunder #15: Extending too much credit to customers
Blunder # 16: Lack of adequate Research of the industry and marketplace before starting up
Avoid as many of these blunders as possible and remember to keep your hands out of your wallet until you finish all your homework. Then go out, take a deep breath, and show the world that you made the right choice!
Private Reply to Earl Sigmund (new win)