In March 2012, Craig Ballantyne, the editor of the Early to Rise ezine (e-magazine) noted that people respond best when they are told what not to do as opposed to being told what to do. Apparently, articles about ‘what not to do’ or similar topics receive the widest readership. Let’s take a leaf from him and look at these business startup mistakes.
#1: Have an escape plan aka ‘Plan B’
While you may be starting your business on a part-time basis, you should not leave yourself room for ‘trying’ if this is the right thing.
Once you have made up your mind on the business you want to pursue, take it and don’t give yourself options. You will live, learn, make mistakes, correct them and breathe your business and with time it will pay off big time.
#2: Run into business to ‘escape’
This normally happens when someone is in what they think is a horrible working environment. No matter how bad your job is, don’t jump off the cliff and into business without preparation.
It’s a different thing if you’ve suddenly found yourself jobless, but if you’re still working, give your business time to solidify before you sack your boss. This will take between 6 months to 1 year of diligently working on your business.
If you make the mistake of jumping from your job without a plan, then you will most probably jump from your business when things get tough, and believe me they will get tough sometimes!
Finally, ensure you have enough money to cover one year of your living expenses or that your business is paying you at least 75% of what you’re earning before making the jump.
#3: Start a business to follow your friends
One of the worst things you can do is start a business because you’ve seen your friends, colleagues or relatives succeed in it (or because it’s the latest fad).
Most of the people I’ve met who have failed in business admit that they normally follow other people into business or jump onto the latest fad (remember the quail business in Kenya?)
If you’re going to be a copycat, then be a savvy one and critically evaluate the business idea first.
#4: Start a business that you don’t understand
This is very critical especially when starting your first business. You will need to have a general understanding of how the business works and/or have a trustworthy business partner who has experience in the business and in growing a business. You don’t have to be an expert, you just have to know how things fit together.
#5: Go into business with people who are like you
You need to go into business with people who complement you, not those who’re like you. You and your business partner(s) need to like each other and be complimentary in such a way that all possible strengths are covered and weaknesses minimized within the partnership.
The worst thing you can do is partner with someone who is exactly like you! Shop for your business partners carefully and wisely.
#6: Go into business with family, friends and colleagues
Sometimes someone close to you will convince you that this idea is a GREAT opportunity. On rare occasions, this does work out perfectly.
In most cases however, it’s a case of a fool and his/her money being parted. When going into business, emotions should be left out of the door.
Make decisions based on your research, instincts (yes, gut feelings are very useful here…) and your head.
#7: Assume that you will be an overnight success
Sadly, It’s mostly in movies when you see someone open a business and customers come running. It rarely happens in real life. Your customers will need to be wooed and treated like kings for the rest of your relationship with them, which should last…forever.
Start small and let the market teach you what it wants from you. You may have what you think is a great business idea but your prospective customers may not necessarily think so.
Today’s customer has a lot of choice and is very savvy so you need to convince them why they should buy from you and not from your competition.
Bonus (I’m sneaking in this one)
When in doubt, refer to reason #1 and remind yourself that you’re in this for the long haul and not the short-term.
This list is by no means exhaustive and you can add onto it based on your experience.
What I have found, in my work and when working with other professionals who are starting a business, is that ignoring these 7 items can lead to disaster, loss of money and/or ruined relationships.
Do you have more business startup DONT’s from your own experience? Please share in the Comments.
Want to know the 7 things you must do when starting a business? Read them here.
Note: This article is extracted from my book 12 weeks to Startup: How to Turn Your Skills, Talents, Knowledge and Experiences Into a Business. It was previously published on the New Dawn Solutions blog.
(Image credit: Idea go at www.freedigitalphotos.net)
