photo credit: alexdecarvalho
Since this post is so popular I decided to repost it. Please let me know what you think.
So, you have decided to go into business for yourself. I applaud you. This is big! As an 18 year veteran, let me say that being an entrepreneur is both exhilarating and exhausting. You love it and you hate it. It can cause the best of times and the worst of times. Ok, maybe I am being overly dramatic, but you are in for a heck of a ride! (Ok ,I am going to cool it with the exclamation points.)
Before you get started, please allow me to share 7 deadly mistakes that many newbies make and show you how you can avoid them. There are more than 7 mistakes, however, these can be particularly lethal. Why? Because their effects can go undetected while they silently and slowly kill your business.
Deadly Mistake 1. - Not Defining a Clear Mission
Many new entrepreneurs, excited that they have a new business idea, want to run out and start taking on new customers. Stop. Don’t make that mistake. First, take the time to define a clear mission. This mission should take you beyond just making money. Here are 3 good questions to get you started:
- How is my business going to be uplifting to my customers?
- What need is it going to fulfill for my customer?
- Why is fulfilling this need so important to my customer?
In his book Rich Dad’s Guide to Investing , Robert Kiyosaki explains that his Rich Dad said: “If a mission is clear and strong, the business will weather the trials every business goes through during its first ten years. When a business gets big and it forgets its mission, or the mission it was created for is not longer needed, the business begins to die”. (Richard actually describes some fundamental keys to forming a winning business, I would suggest reading this section his book (chapters 31-36)).
The mission is what raises your business above the mundane. It breathes life into your enterprise. Don’t underestimate it.
Need help? There are lots of resources you can find doing an Internet search. One such resource is http://www.missionstatements.com .
Deadly Mistake 2: Working in the Business but not Working on the Business
This is a classic mistake. I have been guilty of this one myself. This can be especially deadly if you are flying solo. Fred had this problem.
Fred is a computer-networking expert. A friend encouraged him to start a computer networking business to serve small businesses in his town. Fred wholeheartedly opened this business. Fred had a special touch with his clients and he did fine the first year. He was a technical genius and his clients loved his work. Things were good.
Then it happened…Fred started getting threatening calls from bill collectors, his accounts receivables were increasing, customer complaints were increasing and he hadn’t acquired a new customer in months. What was happening?
Fred was so busy working in his business that he neglected to work on his business. He was doing all the technical things that a network specialist should do. Indeed, this is what he enjoyed and where he invested all of his time (working in the business). The problem was that important activities that would allow him to stay in business were cast aside (working on the business). Activities like creating and executing a marketing plan, paying your vendors on time, managing your accounts receivable were simply not done in a systematic way.
How do you solve this problem? A good place to start is as follows:
- Write out and separate “in the business” and “on the business” activities into 2 categories;
- Set aside specific blocks of time to work on the business and only on the business.
Want to learn more? A classic book that addresses this very subject is The E-myth Revisited, by Michael Gerber . It graphically lays out the problem and then provides workable solutions. It is a must read for new and seasoned business owners alike. Also, check out this post Organizing for Growth from his blog .
In my next post I will address a few more of the deadly mistakes. Please keep an eye out for it.
