Avoid some of the common mistakes business owners make. These are right up there with white pants on a fat ass and orange lipstick with green eye shadow.
1. Lack Of Cash - They ran out of money before they got any income from sales. Don't borrow from the inlaws either. Everytime you buy a new pillow M-I-L will shoot you THE look from her broom. (How can she justify that when she owes us....well, you get the picture.) You need more money than clients first.
2. Excessive Costs - Businesses that are building out space have cost overruns on construction and use up all of their working capital. All of your cash should go toward making sales, lip gloss and kick-ass shoes so you can score the client or at least a date.
3. Target Market/Product Ideas - Don't make puff-paint kitty sweatshirts with matching Keds for the over 60 craft crowd. Target! Target! (Not just the store..)Who is the customer anyway?
4. Competition - "Well SHE is making money selling bird feeders - so why can't I." theory. You were born an original - don't die a copy with bird feeders strewn about your corpse. Does your business underestimate the competition? Larger or more established businesses can hold sales, reduce prices, and increase service. There may be more competitors than you anticipated. Do your research and figure out who your competitors are. Avoid starting a business in a heavily saturated market. Skip the bird feeder idea.
5. Franchise Difficulties - So you want to make someone else rich eh?- Consult with the ones who have made it. Pay for her lunch..
6. Pyramid Schemes - There are many pyramid schemes on the web and advertised on TV. Watch out. Think about it - after you sell to your family and friends - who else can you sell to. These are scams that get their money upfront and you end up with software, product, etc but no customers.
7. Partnerships/ Turnover - Yes - employees will leave your wonderful business. How dare they! Nothing lasts forever except Herpes and partnerships break up. Be prepared for change. People will move, get bored, change their mind, become greedy or think they can do it better. Who knew? Do have an exit strategy and NEVER do a 50/50. NEVA!
8. Unable To Fill Orders - Many businesses set very high sales goals and then can not fill them. Do you really want to glue widgets on something times 30,000 alone until 3am forever? Have a back-up plan. (And don't ask me about this anymore because I don't have one).
9. Getting The Word Out - Hire a PR person and NEVER LET UP! This is like air, toilet paper and chocolate when you are PMS-ing. Your name needs to be on the internet. A lot.
10. Seasonal Business - Skip selling the blow-up snowman in June or sparklers in December . Fill a need and solve a problem. Be creative. Use the slow times to dream up new ideas, recruit new people, organize your marketing efforts. Don't panic.
1. Lack Of Cash - They ran out of money before they got any income from sales. Don't borrow from the inlaws either. Everytime you buy a new pillow M-I-L will shoot you THE look from her broom. (How can she justify that when she owes us....well, you get the picture.) You need more money than clients first.
2. Excessive Costs - Businesses that are building out space have cost overruns on construction and use up all of their working capital. All of your cash should go toward making sales, lip gloss and kick-ass shoes so you can score the client or at least a date.
3. Target Market/Product Ideas - Don't make puff-paint kitty sweatshirts with matching Keds for the over 60 craft crowd. Target! Target! (Not just the store..)Who is the customer anyway?
4. Competition - "Well SHE is making money selling bird feeders - so why can't I." theory. You were born an original - don't die a copy with bird feeders strewn about your corpse. Does your business underestimate the competition? Larger or more established businesses can hold sales, reduce prices, and increase service. There may be more competitors than you anticipated. Do your research and figure out who your competitors are. Avoid starting a business in a heavily saturated market. Skip the bird feeder idea.
5. Franchise Difficulties - So you want to make someone else rich eh?- Consult with the ones who have made it. Pay for her lunch..
6. Pyramid Schemes - There are many pyramid schemes on the web and advertised on TV. Watch out. Think about it - after you sell to your family and friends - who else can you sell to. These are scams that get their money upfront and you end up with software, product, etc but no customers.
7. Partnerships/ Turnover - Yes - employees will leave your wonderful business. How dare they! Nothing lasts forever except Herpes and partnerships break up. Be prepared for change. People will move, get bored, change their mind, become greedy or think they can do it better. Who knew? Do have an exit strategy and NEVER do a 50/50. NEVA!
8. Unable To Fill Orders - Many businesses set very high sales goals and then can not fill them. Do you really want to glue widgets on something times 30,000 alone until 3am forever? Have a back-up plan. (And don't ask me about this anymore because I don't have one).
9. Getting The Word Out - Hire a PR person and NEVER LET UP! This is like air, toilet paper and chocolate when you are PMS-ing. Your name needs to be on the internet. A lot.
10. Seasonal Business - Skip selling the blow-up snowman in June or sparklers in December . Fill a need and solve a problem. Be creative. Use the slow times to dream up new ideas, recruit new people, organize your marketing efforts. Don't panic.
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