17 Most Common Mistakes Start-Ups Make
Tuesday, December 06, 2005
A seasoned entrepreneur, John Osher, reveals the 17 most common mistakes startups make and how to avoid them:
1: Failing to spend enough time researching the business idea to see if it's viable.
2: Miscalculating market size, timing, ease of entry and potential market share.
3: Underestimating financial requirements and timing.
4: Overprojecting sales volume and timing.
5: Making cost projections that are too low.
6: Hiring too many people and spending too much on offices and facilities.
7: Lacking a contingency plan for a shortfall in expectations.
8: Bringing in unnecessary partners.
9: Hiring for convenience rather than skill requirements.
10: Neglecting to manage the entire company as a whole.
11: Accepting that it's "not possible" too easily rather than finding a way.
12: Focusing too much on sales volume and company size rather than profit.
13: Seeking confirmation of your actions rather than seeking the truth.
14: Lacking simplicity in your vision.
15: Lacking clarity of your long-term aim and business purpose.
16: Lacking focus and identity.
17: Lacking an exit strategy.
, plus, the 5 things you must do to ensure success:
1. Know your goals for the venture. "A lot of people see an opportunity without ever asking themselves what they're doing it for," says Russo. "Are they trying to make a quick buck? Create a legacy? Have a lifestyle? There are a lot of reasons. It's critical that you know from the beginning what your goals are, because everything else is going to revolve around that."
2. Recruit and hire the best people. "It sounds almost cliché now to say I'd rather have an A team with a B idea than a B team with an A idea. The right team can fix a lot of problems. If you don't have the right team, you don't have much of a chance," Russo says. "Get the best people available at the time."
3. Develop a forgiving strategy. "Things are going to go wrong," he says. "They're going to be harder, take longer and cost more money than you think. You have to have a strategy to survive. A lot of people put together a plan that will work only if everything goes right. It's not going to."
4. Be honest with yourself. "Recognize shortcomings, weaknesses and problems immediately. Do not ignore them or try to talk yourself out of them," Russo says. "Address them head-on."
5. Commit to the business. "You can't really do anything significant without fully committing yourself to it. A lot of people try to dabble," he explains. "They think they'll do it part time [and] see how it works out. If you plan to be successful, you have to commit."
Read the full entrepreneur.com article
Related posts:
10 Mistakes Small Business Owners Need To Avoid
Top Ten Startup Rules
Tags: entrepreneur, small business, mistakes
posted at 12:50 PM
|
