5 Entrepreneurial Pitfalls

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You are the lead salesperson and champion of your business and you need to get your product name or service out to the community as often as possible.  If your advertising budget is small, take advantage of the local paper, fliers, and Craigslist.  To really get your business off the ground you will also need some assistance.  It’s understandable at the beginning stages that you won’t likely have a large budget for payroll expenses.  Consider hiring an industrious high school or college student as an intern to take on some responsibilities.  Many people will be willing to work for less in exchange for the hands on learning they will acquire.

4. Lacking a Clear Plan

One of the clearest reasons to start up a business is that you have discovered a need for a product or service that is unmet in the market.  But that’s only one of the good reasons.  Unfortunately, there are far too many bad reasons why people become entrepreneurs -- which often end in failure.  The leading cause of a small business’s collapse is its failure to determine early on if the market is sufficiently fertile to support it.   Many entrepreneurs do not spend enough time researching before a business startup.  It seems like a no-brainer but it still needs to be said: make a business plan!  Research the competition and keep the focus small at first.  This is not a time to follow your emotions.  If you want to succeed you have to do your homework.  Many communities offer courses where instructors help you craft a successful business plan.  Once you have the plan in writing, understand that this is not the end.  Review the plan over and over and follow through on your implementation.

5. Impatience

 
We live in an age of instant gratification and many entrepreneurs foolishly expect that of their business.  Wouldn’t it be great if profits started rolling into your bank account immediately after you open the doors of your own business?  This is the kind of wishful thinking many entrepreneur wanabees have.  Cultivating a successful business takes time -- it doesn’t happen overnight.  The best entrepreneurs recognize that in order to succeed it is best to try out a business model on a small scale before a major launch. This helps them find out what their industry is about and lets them make mistakes at times when they can still afford it.   Again, stick to a concise business plan and don’t try to expand too quickly.  Give your business enough time to grow.  But be careful -- there’s a fine line between giving up too quickly and not knowing when to let go.

Good Luck and Finish Strong

One-third of small businesses fail in the first two years, according to the Small Business Administration, and a little more than half fail within the first five years.  If you’ve lost your job, like so many did due to the flailing economy, you may be thinking of starting a business as an avenue to increase cash flow.  Historically, as unemployment rates go up, so do start-ups.  Do the research beforehand and don’t let profit margins be the only reason for becoming an entrepreneur.  As an entrepreneur, you are undoubtedly tempted to be a man of many hats.  You may be playing the roles of delivery driver, account executive, and manager.  Don’t dabble in areas where the fallout is likely to cost you significantly.  Make sure you have a well thought out business plan, the funds, and strong accounting (you may want to befriend your accountant).  By avoiding a few common mistakes, your business can be both rewarding and successful.

 

 

 

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