Serious about Starting Your Business? Avoid These Mistakes

Since the launch of my first book “48 Business Ideas that Require Less than $1,000 to Start” in April I have been interacting with hundreds of individuals aspiring to become successful entrepreneurs.  Most of the debates or rather concerns people have is that success, eventually, is a number game.  Which means only a few businesses fly while the rest are destined to fail just to confirm the inevitability of this particular law of nature.  Experts would usually use statistics and market research to convince you that if you start a business your chances of failure are staggering.  Personally, I believe that this misconception has yielded the following:

• Limit the supply of entrepreneurs allowing existing businesses to continue dominate the market along with a few newcomers
• Deprived consumers from what might have been great products and services because bright entrepreneurs were told that there is a 99% chance of failure and, even worse, possible imprisonment
• Confirming the myth that most businesses fail as those entrepreneurs ignoring the warning and going ahead with their business ideas keep resonating the cautionary advice against failure and drive themselves into failure head first.

I spent ten years of my life working in the area of investment management and finance.  The industry in which I worked along with my education enticed me to quantify everything in life.  I always thought in terms of one plus one equals two.  Later on, after a series of events and experiences I realized that numbers mean nothing most of the time except for your blood pressure, blood sugar level and heartbeat.

My personal view on entrepreneurship is simple and straightforward.  I believe that you only reap what you sow.  Even if some outside forces keep hitting you and catastrophe seems to have your personal address you still reap what you sow.  Adjust your course and the sky is the limit.

If you are serious about starting your business and succeeding you have to avoid the following mistakes:

1. Assuming that the world is rational

Warrant Buffett, the world richest stock market investor, once said “if the market was rational I would have been homeless”.  The world is totally irrational.  On the conscious level people claim to be seeking rational decisions while on the subconscious level most of us are irrational.  Look at the tobacco industry and just think why people would pay money to buy all sorts of cancer.  Similarly, have you ever thought why healthy food is inexpensive compared to unhealthy food?  Successful businesspeople know this fact and make use of it.  However, unlike the rest of the world you have to remain rational in every step of the way.

 2. Preparing for failure

Seriously, if you have the time and the planning ability you might use these resources to plan for success.  Once you plan for failure you send a signal to your mind commanding it not to try harder as you have already planned for failure.  What I mean by preparing for failure is talking to yourself with nonsense like “If I fail it will certainly not be the end of the world”.  Failure is always a possibility but you just treat it as one of the taboos for the time being.

 3. Agreeing with whoever speaks last

In my consulting assignments I have dealt with aspiring entrepreneurs who would seem so enthusiastic about starting their business and then seeing the enthusiasm fade away.  When inquiring about the sudden change I get replies like “My uncles thinks that this idea will not fly because …..”  If you decided to start your own business and completed the due diligence thoroughly and “rationally” then jump for it.

4.Having very short-term view

Businesses take years to blossom.  Never make the mistake of quitting when you are inches from hitting the gold vein.  Even if you think it is time to cut your losses and quit, just hold for a little more.

5. Mistaking temporary setbacks as fatal

A young man working for IBM made a decision that most warned would be unwise. However, he was convinced that he knew best and went along with his plans. That mistake cost the company 10 million dollars.  Needless to say the young man was immediately called to the office of IBM founder Tom Watson Sr.  I can only imagine what was going through the mind of this young man. Sweaty palms, trembling, fear.  Upon entering Mr Watson’s office the young man looked down and said, “Well I suppose you want my resignation.”  “You can’t be serious!” Mr Watson exclaimed, “We just spent 10 million dollars educating you! You’re not going anywhere!”  We have all made mistakes. The question is what are you going to do with those mistakes? Hopefully you will learn. Don’t dwell on your mistakes! Take them as a learning experience and move forward!  The story says it all.  Even if you seem to have hit rock bottom there is always a way out.

 6. Not having a mentor

Find a successful businessperson and ask him/her to teach you how to succeed.  Ture and decent businesspeople are generous and you might be surprised by their willingness to help you out pro bono.  Some of them might even help you with booking new business and introduce you to potential clients.

 7. Trading your time for money

We have 24 hours/day out of which 8 hours should be spent in bed if we want to live long enough to harvest our business success.  Develop products and services that sell even while you are not there.  Have people work for you on part-time or full-time basis or conduct your business online.  You just cannot have more than 24 hours/day.

 8. Becoming and employee in your own business

Never structure your business so it consumes most of your time or cause you the same stress you used to get from your old job.  Sit back and relax and act as a business owner.  Plan how to grow and develop your business rather than how to complete client orders or finish pending tasks.

 9. Not recognizing success when you achieve it

I have worked with business owners who managed to take their business from the scratch to great success without actually realizing that they have succeeded.  They complain that they believe that something is missing and they need my help in realizing it.  Instead of praising themselves for moving from a salaried job to full financial freedom and success they dwell over not achieving the results they wanted.  Live your success and enjoy it before you recharge for the next level.

 10. Not knowing when to shift to gear 2!

Some businesses would grow from one or two employees to hundreds or even thousands over time.  The reason is that the owner was sensible and followed the tips of successful entrepreneurship.  All of a sudden and as a result of the growth, the business beings to act like a car with manual transmission when the driver keeps up the acceleration without shifting to the next gear.  As what happens in the car, the speed drops and things may start to go out of control.  Thus, you should always prepare for the next stage of success once you clear the first stage.

If you are serious about starting your business and wondering about the right idea, please download and read my book "48 Business Ideas that Require Less than $1,000 to Start" at www.hotbusinessidea.com or write to [email protected] to buy a copy offline.