Mar 10
1
Start up Killers-Highlights and Comments
I recently read an article from Young Entrepreneur titled Start up Killers: Avoid being a statistic. I thought it highlighted some very valuable information. As a business consultant, I help out many start ups, mostly one man shows and as I was reading the article I felt it touched on some very important issues that start ups face or have the portential of facing. See highlights from the article and my comments below:
According to a recent study by SBA, a mere 44% of new business start ups can expect to still be doing business just four years later
Problem: Starting a business affects your family, It affects the budget, the amount of time you spend them and they have to make some sacrificies.
Solution: Keep them involved -Listen to their concerns and their advice
My Comment: Great advice! If you are going to however involve the family in business operations and major decisions, or if you are going in a partnership with a family member, remember to have a partnership agreement. It could be a legal document or a letter of understanding that outlines duties of each involved party and expectations in addition to any sort of compensation. This can avoid major problems in the future.
Problem: Isolation:E ntrepreneurs, by nature, are independent people. We love the idea of being “self-made.” Be careful not to isolate yourself though.
Solution: Network, Network, Network.
My Comment: Networking is key for any business! What most business owners focus on when it comes to networking is concentrating on events that can help bring business. While this is important, business owners need to focus on networking events that can help them meet competitors, mentors, other start ups and potential business partnerships.
Problem: Productivity destroyers: There will always be something out there to distract you.
Solution: Make and stick to a schedule
My Comment: For tips on how to be productive while working from home, refer to my post Working from home- The good, the bad the lessons learnt
Problem: Plate overload-A startup entrepreneur has a lot on his/her plate no matter what. But one thing that will take the wind out of your sails and kill your startup before it ever really gets off the ground is becoming overwhelmed with all you have to do.
Solution: Delegate the veggies. Whatever you do, don’t let an overflowing plate kill your business.
My Comments: As a business consultant, one of the most deadly things that I see in a failing business is when the entrepreneur tries to be superman/superwoman and wants to do everything and anything. Delegating, automation and outsourcing tasks is how you can protect yourself.
Problem: If you’re expecting to make a killing right off the bat, just know that is not typical.
Solution: Plan ahead, save, and spend wisely.
My Comment: Work on those financial projections, figure out your bottom line, your break even point and project with both best case scenarios and worst case scenarios. In the projections, leave cushioning for unforeseen expenses. For a list of free local resources that can help you with your financial projections and business planning click here.
Link to the original article from YoungEntrepreneur titled Startup Killers: Avoid becoming a statistic – http://www.youngentrepreneur.com/blog/startup-killers-avoid-becoming-a-statistic/
If you enjoyed this post, make sure you subscribe to my RSS feed!
Related posts:
