30 Mistakes Entrepreneurs Make

 

I found this article 30 Mistakes.

The opening paragraph says it all – business owners, entrepreneurs make mistakes that can be avoided. It’s true in my experience. I haven’t seen anyone with a novel way of failing at business.

What I like about this article is that in centres around contemporary business and the issues entrepreneurs have to be across in delivering a successful business. What this article demonstrates is how complex running a business truly is – cubes, circles, mirrors darkness and light.

There are many statistics tell you about the reasons for business failure. Dun & Bradstreet says these are the 6 reasons why businesses failed:

  1. Inadequate line experience – 11.1%
  2. Inadequate managerial experience – 12.5%
  3. Unbalance experience – 19.2%
  4. Incompetence – 45.6%
  5. Other – 1.5%
  6. Unknown – 10.1%

True as these reasons may be, they are not insightful. They don’t help you with clarity around the cubes, circles, mirrors, darkness and light.

Here are the reasons suggested by the US Small Business Administration.  

  1. Lack of experience
  2. Insufficient capital
  3. Poor location
  4. Poor inventory management
  5. Over investment in fixed assets
  6. Poor credit arrangement management
  7. Personal use of business funds
  8. Unexpected

Gustav Berle in The Do It Yourself Business Book adds the following two reasons:

  1. Competition
  2. Low Sales

Statistics in Australia say this about the reasons why businesses fail:

  1. Lack of experience
  2. Poor location
  3. Poor financial control
  4. Ineffective strategic management
  5. Cash flow planning

These are all ‘check box’ collected statistics. Stories such as the 30 Mistakes Entrepreneurs Make gives detail. So here are my top 7 picks from this list of 30:

# 7 – They don’t spend time on the (non-sexy) foundational work

You have to work on the basics – and get them right.

# 6 – They think that because they loved doing one thing that they will love running a business

Great technician; bad manager.

# 5 – They don’t have a support system

Always good to know, be and work people. Get a different perspective.

# 4 – They waste time on the wrong things

Is what you are doing right now aligning with your business strategy?

# 3 – They think they don’t need to constantly learn to stay competitive

Knowledge keeps you in the game, at the edge and having fun.

# 2 – They don’t think long-term strategy and continue to spin their wheels

Is what you are working on right now an opportunity or a distraction?

And my top pick

‘They don’t pay attention to posts like this’.

Have a read – you can make it work.