jh’s thought 健豪随想

There are no secrets to success. It is the result of preparation, hard work, and learning from failure. – Colin Powell

The Top 10 Mistakes People Make When Starting A Business

I believe the scare of financial crisis has affected many people. The  news of jobs cut has been a hot topic since last october. So i believe  many people would want to find some ways to earn extra income. For  instance, one of my friend told me that he wants to become a boss after  his graduation. I have been very interested in entrepreneurship and  thinking of becoming a boss myself one day as well.

I came across  this article which discussing about "The top 10 mistakes people make  when starting a business" from internet. I think this would be very  useful for people who would like to start a business without any  experience. So i would like to discuss about those mistake in this blog  as well :-)

1) Not Enough money

My opinion : I believe everyone realizes that how important cash flow is for any kind of business. Capital is always the main concern when you are starting a business. But i think many people never put the cash flow to run a business into consideration when they starting a business. For a simple example, you have to always pay for your employees before you could actually pay for yourself.

2) Not thinking survival

My opinion: How do you stay around one more day so that you can learn more about your market and close new customers? Sometime you may need to do something that you do not like but it helps to pay the bills. So, i think proper plan is very important for surviving long enough in the business field. Keep yourself learning new things is also one important issue.

3) Losing momentum

My opinion: I think this is a very important issue for an entrepreneur. I have seen some people start their business very excitedly. They think they want to apply what they have learned from the books that they read. They are motivated by many successful people and think that ‘i can do it’. The ‘ i can do it’ feeling will usually fading after they face some failures. So, if you want to become an entrepreneur, try to have the entrepreneur mind first.

4) Doing it all alone

My opinion: If you notice, most of the successful business is not done by one person alone. Nobody is perfect or has the skills to do everything themselves. Having a strong team is of course essential to keep a business going. But there is always disagreements inside a team and your idea usually hardly satisfy everyone. So the technique to manage a good team is also a great knowledge.

5) Not hiring right away

My opinion: In order to save cost, many start ups actually avoiding hiring people. But think about it, how much things that you can do it all alone? how much time do you have in one day for you to run your business? According to the author of “Rich dad poor dad”, OPM(other people time) is a great tool to leverage on and it helps your business grow.

6) Doing it all for the money

My opinion: i think this is simple to understand. You won’t possibly do something for a long period of time if you do not like it.

7) Getting to year one, past year two

My opinion: Many entrepreneurs do not realize that a business usually takes years to see the result. So if you lose your excitement in the first two years, your business may not lasts long. The starting phase of a business is always difficult. You may face many people rejecting you, you may face difficulties of getting rid your inventory and etc. So, prepare to meet the failures before you can be successful.

8) Don’t build around a customer

My opinion: The best way to make money is to find out the problem of you customer and you offer a solution. But i have seen many entrepreneur has done the other way round. They will think that, i will build something good and customers will come. I recommend a book named after <<how do dominate your niche>> and i think you would probably find a solution to solve this problem there. 🙂

9) Don’t seek mentors

My opinion: Yes, many entrepreneurs think that they have acquire a lot of knowledge from school and books. But a great way to get a business going is to find out what other people have done to achieve success and implement those strategies into your own company. I think learning from mentors is the best way to get rid of all the difficulties.

10) Don’t get involved in the community

My opinion: Personal networking is very important for a businessman. I was once work in a PC fair and a young entrepreneur told me that: Business is about how many people you know but not how much you know about the business. I was quite shocking when i heard that but now i realized why.

An informal statistic shows that 95% of start up fail in the first five years. 90% of the remaining 5% fail in the following 5 years. This data shows that many people actually do no realized about the mistakes mentioned above. So welcome all my friends to discuss about how we can learn more and become a successful entrepreneur ya…:-)

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30/12/2008 Posted by | wealth | , , | 2 Comments