6 Traps for Entrepreneurs.
Thursday, March 02, 2006
It’s common knowledge that most small businesses fail within 5 years. These statistics are mindblowingly depressing for people looking to start up a new venture. No-one starts out with the intention of creating something that isn’t sustainable. In fact most people would be adamant that they weren’t going to be one of those statistics. There are many things that can undermine a business. Here are a few:
Getting wedded to a single idea and sticking with it too long
How long has it been since you updated your offer? That can be as simple as delivering your product or service in a new way. Remember, new ideas are the currency of entrepreneurs. Schedule time to brainstorm new ideas for your business.
Believing your own b.s.
Without wanting to burst your entrepreneurial bubble, sometimes we can believe so strongly in what we are doing that we ignore other (differing) opinions. Just remember that an alternative view is also likely to be based on sound reason, and it's a great idea to understand what those reasons are.
Ignoring your cash position.
It's often the case that business owners are overly optimistic about sales, particularly of a new offer. In the event that this happens, your reserves of cash will be your lifeline. Knowing exactly how much cash you need to run your business from week to week is step one in avoiding this trap. Step two is obviously having the cash you need, plus extra in reserve, to survive for 6 months with low or no sales.
Letting unproductive employees linger
If you employ other people then one of your key activities is managing and coaching the performance of the people that work for you. Tthere will be times when your employees just aren't working out as you had hoped. Have you ever stopped to notice how draining it can be dealing with "staff" issues?
Selling too hard.
If you find yourself selling an idea or product too hard to too many people, perhaps it's time to listen to why they are not buying and learn from that, rather than trying to become a better salesperson. Have mechanisms in place that allow your customers to provide feedback. Ask your customers what else they want before you go and create something new.
Not setting up support structures.
Admitting that you need helping some areas is the responsible approach to business management. Hire people and services to handle the stuff that you're not good at, or don't have time for. Most entrepreneurs do better when they are fully supported, it's amazing the difference that taking the pressure off yourself can do for your energy levels and focus.
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Tags: entrepreneur, traps, cash, selling, support, small business
posted at 10:40 AM
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