Entrepreneur.com – 7 Sins of Newbie Entrepreneurs

7_Sinshttp://www.entrepreneur.com/article/232021
by Dana Brownlee
published March 7, 2014

My comments are in italic in between each point

  1. Not setting aside enough cash reserves to support yourself.
    This is an excellent point. This is what I call, “not having enough cash flow”. Using “credit cards” is NOT the move to make. Entrepreneurs make safe bets – don’t use credit cards.
  2. Using assumptions that are overly optimistic during planning.
    This points toward a realistic heartbreak. Often people give up on you, before you do; this includes customers. You might make it, but they won’t. Keep expectations in-line – always.
  3. Not properly evaluating your business model.
    I have made this mistake all too often. Some good advice is to have someone unrelated to you evaluate the model. I have heard the suggestion that a woman should do this. It sounds reasonable.
  4. Trying to do everything yourself to save money.
    Very true. Often this involves a shortage of resources – which includes not having good contractors. Get networked and you will find those resources.
  5. Not being willing to work like a dog during the early days.
    This is hype. Sure work hard, but not like a dog. Work constantly and pace yourself. Make your “off” time work relate – such as when expanding into a new area, take a 3-5 day vacation and make 1-2 days related.
  6. Pricing your product or services too low or high.
    Pricing the product too low is generally the case – as a problem. If it is too high, most entrepreneurs lower the cost – but your pricing should be 3x to 5x of production cost, else your wasting everyone’s time.
  7. Not having a growth strategy.
    If your making money, this is not a bad problem. NO GOOD entrepreneur complains about too much business. A GOOD entrepreneur hustles to get money – everyday.

 

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