Recently a social networking site colleague posted the following question and I responded.
What is the biggest mistake entrepreneurs make and how would you suggest they prevent that mistake?
I can think of quite a few!
>> Not preparing a business plan Solution: Take time to research & write
>> Not discovering/creating a competitive advantage Solution: do a thorough SWOT, and have a sound advantage before launching
>> Not understanding that business ownership means being a really good sales person Solution: ensure compatible personality traits, sales experience & training
>> Undercapitalizing Solution: assuming getting a larger loan is not possible, start smaller plus beg, borrow and barter what is needed to launch
>> Overestimating first year revenues Solution: more conservative estimates; realistic, optimistic and pessimistic pro forma income statements
>> Underestimating the time it takes to land those first few clients solution: more realistic understanding of the sales process/cycle and lead to land ratio
>> Not investing in marketing/advertising Solution: robust marketing budget and professional assistance with branding
I can give you more, but these are the ones that came right off the top of my head.
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