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43 Business Mistakes

Lessons learnt by first time


entrepreneurs

Business Mistakes

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Not Accepting good advice


repeatedly ignoring bad advice can make us
miss good opportunities
Not understanding the difference between a good
idea and a good business
Why isnt anyone else doing this?
Who will buy your product/service?
How many of those people are there?
How much would they be willing to pay?
What will be the costs?

Business Mistakes
STARTING A BUSINESS ON A BAD IDEA
I.

What need does my business fulfil?


II.

Ask Around

Business Mistakes

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Right idea wrong person, wrong person right idea


Thinking your customer are just like you
Wrong location
Proximity to rivals
Parking
Prestige
Thinking markets will never change
Thinking if I build they will come

Business Mistakes

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II.
III.
IV.
V.

Inadequate research
Revenue streams
Costs
Rivals
Customers
Product

Business Mistakes

Avoiding difficult tasks


-Make a list, set deadlines, set a penalty & reward
system
Hiding behind your desk
-You need to reach out to customers, suppliers
and other related businesses
Not putting your own money in it

Business Mistakes

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Being stupid with equity


Generosity, Greed & Stupid
Burning capital
-Burn rate
Making Deals not relationship
Focus on the win-win strategy

Business Mistakes

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Not being hungry enough


Set metrics
What have you learned and achieved
if it was easy everyone would do it
Not being able to sell
Sell your passion

Business Mistakes
Not identifying all your costs
I.
Staff
II.
Premises
III.
Fees
IV.
Finance
V.
Technology
VI.
Non Payment
VII.
Contingency Cost
VIII.
Emergencies

Business Mistakes

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Being flattered by turnover


Revenue isnt profit
Not understanding cash flow
Seasonal effects
Not doing a sensitivity analysis
What percentage of cost increase or revenue
decrease can you bare before you go in red

Business Mistakes

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II.
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Extrapolation trap
How many staff will it take?
Where will that staff work?
Are they enough customers?
The One percent market mindset
Accept good advice
-repeatedly ignoring bad advice can make us
miss good opportunities

Business Mistakes
Not putting your own money in it
By putting your own wealth, comfort and security on
the line, you give yourself enough motivation to
ensure that the business doesnt fail
Making a poor first impression
I.
Dont Compound on Initial error
II.
Manage Expectations
. Writing a business plan backwards
I.
Market first, Not cost first

Business Mistakes

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Falling out with partners


Partnership Agreement
Outrageous valuations
Arrogance
Growing too quickly
Rapid growth usually means rapid cash
consumption

Business Mistakes

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Disrespecting the customer


Whose money is it
Mistaking salary for Profit
The issue of Drawings
Failing to delegate
Who & How

Business Mistakes

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Not knowing your key performance Indicators


Profit is a blunt measurement tool
Failing to manage staff
Pay, work, conditions, productivity, turnover,
motivation & communication
Over complication
Keep it Simple

Business Mistakes

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Just not good enough


Passion can blind you to the flaws of your
business
Selling at the wrong time
Newsweek was sold for $1 in 2010
Not admitting failure
Would you pass an interview for your own job?

The Biggest Mistake is..


Not doing anything at all