|
Top 10 Pitfalls To Avoid In Starting a Small Business No Real Plan • Do you want to drive 70 mph at night without your headlights on. It can be done, but why? Without a detailed plan of where you are and where you want to go, you will be driving your business blindfolded. Beyond the Hype will help you create your personal road map to your business plan. Poor Sales Projections • There are ways to base your sales projections in reality, not science fiction. If you need money, you better read the chapter on supporting your numbers, or risk looking like the Stooges. Poor understanding of market • There are not just "customers," there are different kinds of customers, with different needs, wants, and desires. Many entrepreneurs "know" their market, only to be rudely awakened by the truth. A little work now avoids many headaches in the future. Undercapitalized • Many failed business people blame "lack of money" on why they failed. That's like explaining the cause of death as the inability to breathe. Based on the amount of money it started with, maybe the business never had a chance. This is a root problem that can be avoided. Starting with a weak foundation • As you get started in your business, ignoring core issues that one can "get to later", is a sure recipe for disaster. Find out what needs to be addressed, such as policies and procedures, before those issues siphon off your valuable time later. Poor marketing program • Trusting the experts on how to market your product or service can be disastrous. Without knowing the 4 key questions of marketing, even the most creative advertising campaign will fail. Not understanding the industry • You should become an industry expert and keep track of the trends that you face. Many clients have avoided "recreating the wheel" by watching their competitors around the country and learning from their successes and mistakes. Learn how you can do it too. Cash Flow Ignorance • Simple, ignore your cash flow and it will go away! Find out how to set up your records to keep track of the "pulse of your business" so you don't "flat line." Focus on product or service vs. customer needs • Many new businesses fall in love with their product and service. They want to tell everyone about its intricacies and schematics. Problem is, no one cares to solve their problems, and meet their needs. Failure to delegate • Sometimes we think we need to handle everything. In reality, by correctly delegating the less "value-add" tasks, the business owner can maintain the focus on the "big picture." Thereby ensuring success. |
