September 7th, 2007
I see new owners and veteran entrepreneurs make these types of mistakes everyday. I have committed most of these mistakes in my earlier days as well. If you are just starting out and can avoid these mistakes-do so! If you have already committed some of these blunders there are ways to fix it and I will address those in a future post.
1. Thinking Everyone is a Customer- The truth is that not everyone wants to buy what you are selling and an even greater truth is that you should not want to sell to those who don’t need your services. Never start a business without a target audience in mind. Who would benefit MOST from your services? Who would YOU be happiest serving?
2. Networking with Everyone- Networking is a lot like dating. Just because someone is interested doesn’t mean you should go for it. Only network with people you truly have a connection with and discerning this does take practice. These types of decisions I often make using my intuition. What does your gut feeling tell you? I once knew a guy who really wanted to see if we could do something in partnership. The first time I spoke to him I felt something was off but I couldn’t quite put my finger on it (this is usually your intuition). Even though I knew deep down that this was not a beneficial venture for me I said yes. After many stressful conversations, I finally explained that I was not interested. It was a hard lesson but a worthwhile one. Since then I have learned to listen to my intuition when deciding who to network with.
3. Wasting Too Much- This goes for wasting too much time and money- Being disorganized will cost you-and it will cost you a lot in business. Learn strong organizational skills before you start your business. When I launched my first business, I was constantly glued to my inbox. I must have really believed that I was being efficient by checking my email and responding promptly. What a joke! Don’t spend too much time doing things that leave you feeling "busy" but are truly unproductive. As for money, remember that each dollar that goes out has to come back, otherwise you are running your business at a loss.
4. Being Too Stingy- This is the opposite extreme of number three. You become too stingy with your money and time. If you print your business cards on regular computer paper or you build your website using a two dollar template then you are risking commiting this blunder. You want to make money and that is understandable but make the right investments for your business. This is to your long term advantage.
5. Not Getting Help When You Need It- There are lots of good business ideas out there and lots of business owners who care about their ideas. Unfortunately, many of these business owners don’t get the help they need in managing and running their businesses successfully. An entrepreneur is by no means a lone ranger. If you have a business that you care about and want to see it succeed, get help when you need it.
6. Afraid of Trying New Things- An entrepreneur knows no fear! Okay, just kidding. But you can’t be afraid to try new things. If something isn’t working you have to have the courage to scrap it and go in a new direction. If your current marketing methods are not working, try new ones! If the part-time employee you hired isn’t giving you the type of work you expected, get a new one. This may sound harsh and I am not advocating firing all your employees. I am simply stating that you have to be able and WILLING to change what isn’t working.
7. Thinking Short-Term- If you think short term, you will do anything to make a sale. Even sell to a person who doesn’t need your services. And in the long term this will cause you to crash and burn. New entrepreneurs are often too concerned with making the sale rather than building a brand and reputation. Short term sales using shot gun strategies will not help build your brand and reputation. But if you work on building your brand and reputation, the sales will follow.
8. Wanting it ALL-yesterday- A business (much like life) takes patience. You get to learn lessons, make mistakes (although you can avoid some by reading articles like this one), and fall in love with the process. A business is a process. It is a constant work in progress. If you want to wake up one day and have your business established-you are kidding yourself. Sure, you can have all the business essentials (a good website, wonderful clients, a marketing strategy, etc.) but a business is never completely established. A business must be constantly reinventing itself to better suit its customers.
9. Being too Serious- Life is short and business is supposed to be fun. Treat your clients with respect, offer something that adds value to society, make lots of money, and HAVE FUN! Entrepreneurs often get stereotyped as all work and no play but this is really not the case. Every successful business has some personality to it, and that business personality is a reflection of the owner’s personality. Let your personality shine through in your business. Not only will it make it easier and more fun, but it will also differentiate you from everyone else in your industry.
10. Working Hard- Don’t work hard. Work SMART! If something can be done an easier way, then do it. For example, when I first started my coaching company I would manually save each name and email address when someone subscribed to my newsletter. This was tedious and a huge blunder. Eventually, I found a company (aweber) and let them keep track! Optimize your business processes whenever you can.
Posted in Business School in a Box, Leaders with Intuition | 3 Comments »
August 31st, 2007
Some serial entrepreneurs can practically start businesses in their sleep, but for the first time business owner launching a new venture can seem like a daunting task. Starting a new business does NOT have to be scary or hard-if you go about it the smart way. Oh yeah-huge proponent of doing things the smart way here.
- Go with what you know- Too many people make the mistake of starting their dream business as their first venture. Now, there is nothing wrong with wanting to open up a bed and breakfast or own your own bookstore. I see it done all the time. But when you are starting your first business-go with what you know! If you have been a chef all your life and your dream business is to own a restaurant-more power to you! But if you have been a hairdresser all your life and want to start a restaurant as your first venture, be careful. If you really want to build up some courage and understand how business works-Go with what you know. My first business was a tutoring service. I absolutely loved working with students, but it wasn’t my dream business. However, it did teach me a lot about how to successfully run a business.
- Find a Model Mentor- Find someone who has already done what you are wanting to do. If you have a rather innovative idea, find someone who has done something similar to that. By studying someone who has already created what you want to create you get the benefit of learning from their mistakes. You also get an objective take on the business. Make sure that the mentor you approach does not view you as a threat and always be ready to tell them what you can offer in exchange.
- Define your Goals- Most people think about defining their business goals AFTER they launch but this is a crucial mistake. Your business should be built around your goals. Try asking yourself questions such as: Why do I really want this business-To make more money or spend time with the kids?, What revenue do I need to bring in per month to satisfy my needs? How many clients do I have to get or how many widgets do I have to sell in order to do so?
- Forget the Business Plan- While I highly suggest that you focus on your goals, I do not recommend writing out a 100 page business plan (unless you are looking for investors and they require it). If your idea is strong and you already have certain goals in mind-your business plan should be no more than two pages long.
- Gather up the Troops- Your first business is bound to be an interesting experience and may be challenging at times. (It helps to remind yourself that it’s all a process). Be sure you have lots of supportive people around you. Before you launch, have a chat with your family about what this may require of them (patience, encouraging words, etc). If you have kids-get them involved. It’s the best way to teach them about business.
- Don’t be afraid to start over- You may launch your first business and realize that it isn’t what you expected. In this scenario you have two options-Re-Launch or Start Over.
- Don’t mistake having marketing problems or not knowing how to sell as reasons to scrap the business. These are things you can learn AND are supposed to learn in your first business.
- If you feel your idea is still good but the packaging and brand are lacking-get professional help-and then Re-Launch.
- If you are convinced (after looking at it objectively) that it just isn’t your cup of tea-either sell or scrap the business. And start over.
The most important thing to remember when launching your first business is that it’s a process and that it takes time. If you work smart, you can save a lot of time but you still have to let the business grow. Working smart is like watering your plant (business) and making sure it gets plenty of sunshine. This allows it to grow into a healthy plant (business), but it still takes time to grow.
Posted in Business Profitability, Business School in a Box, Managing Your Business, Web Entrepreneur Community | 2 Comments »
August 28th, 2007
Only 1 out of 5 businesses survives the first the three years. The majority of these businesses go under due to poor business decisions and lack of support. Once a business hits its three year mark however, the chances of it failing dramatically decrease.
Here are the top 5 rules to follow if you want to get your business to the three year mark (and beyond!)
1) Commit to Commitment- Being a huge fan of the show Fraiser, I remember a particular episode where Niles advises his relationship shy brother to “Commit to Commitment.” If you are truly serious about seeing your business succeed-I suggest that you take this first rule to heart. Once you decide that you are in it for the long haul, you are much more likely to see eventual business problems as challenges to overcome. Don’t run your business with one foot in the boat and one foot on the shore.
2) Love thy numbers- I will be the first to admit that I was never a fan of math class. History and English were much more my cup of tea. However, when it comes to business-I love the numbers. There can be no way around this rule. Can you delegate this task? Sure. Is it advisable? No. Especially not in your first three years of business. If you need help understanding and managing the numbers-get it. But at the end of the day, make sure you are the one tallying your numbers. I am not talking about complicated formulas here, but if you don’t keep a detailed expenses sheet you are bound to get into trouble. Here is a quick test. See if you can answer these questions OR have the means (meaning papers somewhere) that can help you answer them. What were your total business expenses for last month? How many clients/customers do you need this week to help you reach your revenue goal? What is your revenue goal?
3) Be Value Driven- Make sure that what you are providing has real value to people-your people. If your products and services are valuable to your target market-it is just a matter of time before the business takes off. The world is full of people trying to make a buck and while that is the way of society, just be sure you are making that buck by providing a service people can benefit from and feel good about. If every day for three years you focus on improving your services rather than on making money-you will naturally increase your profits. People are happy to pay (and pay well) for products and services they enjoy.
4) Take Time out for Yourself- Running a business can challenge you in ways that you had never thought possible. If you are in it for the long haul (and if you are reading this far-I am assuming you are), take time out to recharge your batteries. Bill Gates is known to regularly take time away from his business in order to catch up with himself. If Microsoft can be okay without him for a while, your business will be okay without you for a few days as well. Often when small business owners are starting out they wonder if they can afford to take a vacation. My rule is-If you can’t stop thinking about taking a break for two straight days, it’s time to take that break.
5) Get a Support System- If you choose to ignore every other rule in this post, go ahead, but please pay attention to this one. Every small business owner needs a support system. Who do you turn to when you have questions? Need advice? Want to share a successful moment? A word to the wise-look beyond your significant other and family for business advice. While they may make ideal cheerleaders, they aren’t always the best people to go to for business advice Make sure you have a good mentor. The prerequisite to starting every business should be the creation of a solid support system. You can’t get through the first three years without it. I have never seen any entrepreneur do so and please don’t take this statement as a challenge. Get yourself the strongest team you can find and onwards you go!
Posted in Business School in a Box, Leaders with Intuition, Managing Your Business | No Comments »
