Top Ten Mistakes Made in Starting a Business

Top Ten Mistakes Made in Starting a Business
People fail in business because they make avoidable mistakes. Start-up entrepreneurs are possessed with enthusiasm and confidence but too often are unaware of potentially fatal business potholes that lie before them. All it takes is a single mistake, one false step, and a business can be history. Here are the top most commonly made mistakes:

1. Not picking the right business to begin with.
2. Inadequate prior experience in the business.
3. Quitting job security too soon, before adequate plans are laid
4. Not having a progressively updated written business plan.
5. Inadequate cash flow management (running out of money.)
6. Opening a business in the wrong location.
7. Inadequate protection in business documents including leases.
8. Failed partnerships.
9. Lack of selling and marketing know-how.
10. Expanding too rapidly before adequate testing.

Business Plan Checklist

Business Plan Checklist

The primary value of your business plan will be to create a written outline that evaluates all aspects of the economic viability of your business venture. It will be valuable in number of ways. Here are some reasons not to skip this valuable tool and roadmap:
It will define and focus your objective, using appropriate information and analysis. You can use it as a selling tool with lenders, investors, landlords and banks. Your business plan can uncover omissions and/or weaknesses in your planning process. You can use the plan to solicit opinions and advice.
Here is a checklist to help you get started:
Write out your basic business concept. Gather all the data you can on the feasibility and specifics of your business. Focus and refine your concept. Outline the specifics using a "what, where, why, how" approach. Put your plan into a compelling format
Here are suggested topics you can tailor into your plan:
A Vision Statement: This will be a concise outline of your purpose and goal
The People: Focus on how your experiences will be applicable. Prepare a resume of yourself and each of your key people.
Your Business Profile: Describe exactly how you plan to go about your intended business. Stay focused on the specialized market you intend to serve.
Economic Assessment: Provide an assessment of the competition you can expect in your business.
Cash Flow Assessment: Include a one-year cash flow projection that will incorporate all your capital requirements.
The My Own Business Online Course and Textbook can provide you with business plan templates that will enable you to create a custom plan for your own specific business as you proceed through the 14 sessions. Each session includes a business plan section that can be downloaded from website and provide you with a single, attractively presented document. Two complete business plan examples are also furnished, one for a product business and one for a service business.

Business Resources

THE TOP TEN DO'S WHEN STARTING A BUSINESS Live frugally and begin saving up money for starting your business. Learn your intended business by working for someone else in the same business first. Consider the benefits of starting a moonlight business. Consider the advantages of operating a family business. Objectively measure your skills and training against potential competition. Consider subcontracting to low cost suppliers if you're manufacturing a product. Test market your product or service before starting or expanding. Make "for" and "against" list describing the specific business you are considering. Talk to lots of people in your intended business for advice. Make a comparative analysis of all opportunities you are considering.

Business Resources

THE TOP TEN DON'TS WHEN STARTING A BUSINESS
Think about leaving your job before you have completed start-up plans. Consider starting a business in a field you do not enjoy. Risk all the family assets. Limit your liabilities to a predetermined amount. Compete with your employer in a moonlight business. Hurry to select a business. There is no penalty for missed opportunities. Select a business that is too high a risk or hurdle. Go for the two-foot hurdle. Select a business in which you must have the lowest price to succeed. Ignore the negative aspects of an intended business. Permit self-confidence to outweigh careful diligence. Allow the promise of a conceptual high reward deter reality testing first.