Running your own business has many great advantages, such as being your own boss and doing what you love to do. If you have an idea and the passion to make it happen, is that enough to make your dreams come true? No. But fear not…
Here are 5 things you must avoid if you want your entrepreneurial journey to be smooth and profitable:
1. No Vision
If you aren’t clear about what you want or how to get it, then fear and procrastination will rule your world. You will get stuck. When you become clear in your vision, then you become clear in how you can make it real. You will develop a sense of direction and will attract solutions that are in alignment with your purpose. So, ask yourself, “What do I really want?” And operate that way.
A vision is different from your wishes, ideas and goals because it is a deeper engagement. Vision causes you to go beyond your comfort zone and to go further into immersing yourself in achieving your goals. Your vision governs every action you take in your business. It will run on its own, and motivates profit, and can even establish shareholder expectations. You and your organization will stay stuck unless you are governed by or acted upon by a vision. Clear visions create clear movements in people.
2. No Business Plan
Often, entrepreneurs do not know how to write a business plan, how to design an action plan for immediate results, or how to get funding. They feel overwhelmed by changing priorities.
A Business Plan is your roadmap for success. It will enable you to transform your idea into a plausible business. It defines and organizes your business and gives you the knowledge, confidence and sense of commitment you need to take your business seriously. It will also get the attention of investors, potential employees and customers. Having a Business Plan helps you to focus, specify your goals and effectively communicate your vision.
No Business Plan = No Funding. So you MUST do one if you want to attract capital. In preparing your Business Plan, you will also be able to identify the Action Plans and Strategies you need to put into place in the crucial areas of your business. . .
3. No Systems In Place To Launch, Run And Expand Your Business
To maximize your effectiveness in ANY business venture, you must ask yourself the following:
- What Problem are you solving in the marketplace?
- Why are you Different? What makes you so special?
- What are your Business Objectives?
- What Products/Services do I offer? Now and in the future?
- Who are your Customers? Get clear on your Niche Target.
- Who are your Competitors? (If your answer is, “I have none,” then think again.)
- What is your Sales Strategy?
- What is your Marketing Strategy?
- What are your Internal business processes?
- Who are my Executive Team, Management, Employees and Advisors?
- What is my Plan for raising Capital?
- Regardless of if you need funds, have you prepared a realistic Financial Plan?
- What is your Exit Strategy?
- How will you keep Learning, Innovating and Growing?
If any of these things are overlooked or if they do not interconnect effectively, then the daily activities within your organization will not be in alignment with your vision, objectives and performance measures. You will be reactive and use the Shotgun approach to running your company. By preparing your Business Plan, you will naturally see what things need to be done in each of these areas, devise Action Plans to get to those results NOW, and put systems in place so the business can run smoothly and profitably.
4. Not Honest About Your Personal Financial Situation
Your personal financial situation may be a mess, and you don’t want to face it. Many entrepreneurs start a company from this position. They think that starting a business will make them more money. The sad truth is that it will cost you FAR more than what you think to get your company launched. You may actually lack the reserves required to survive the many months you do not take home a paycheck.
If you have not done realistic projections, you won’t know the risks you face. Or you may be on a tight or non-existent budget which causes major stress and can strain the strongest of relationships. Do you blindly believe in your idea, and are you spending your life savings on pursuing your dream, but have not analyzed the impact launching a business will have on you personally?
5. No Legal or Accounting Advice & No Mentors
Entrepreneurs often argue they can’t afford a lawyer or an accountant. You can’t afford not to. Make sure to speak to an attorney up front, who will advise you on how to set up the proper business entity, to protect your personal assets and mitigate personal financial risks.
If you don’t have an accountant, get one. Now. Even if it is part-time. Do you think an accountant is only there to keep the IRS happy? An accountant can save you time and money and grow your business.
Let these professionals give you a reality check. Don’t end up scraping by, or worse yet, lose your home or max out your credit cards at ridiculous interest rates, possibly ruining your personal credit. This will prevent investors from wanting to fund you in the future. If you can’t manage your own money, what makes you think an investor is going to turn their funds over to you?
There are many other people who make up your core consulting team and each one of them falls into the category of ‘mentor’. These valuable people are Board Members and Advisors, business coaches and consultants; professional service consultants such as website developers, internet marketers and copywriters; even personal trainers and well-being coaches who can support you and keep you in peak health. Having mentors helps you avoid making mistakes and wasting money. They help sustain your passion and resolve.
6. No Outsourcing
I’ll keep this one simple: Don’t dilute your priorities. How many goals can you reasonably accomplish and focus on? 3, maybe 4 at a time? STOP MULTITASKING! Outsource the things that someone else can do better and faster than you! It will save you time and keep your sanity intact. Spend your time and energy on the things that win you clients and make you a profit instead. Ask yourself, “What can I do with the time and resources at hand?” Hire a Virtual Assistant for 5 hours a week? Be open to the concept of support, and your working life will be much easier.
7. Not admitting to having “Blind Spots”
The premise is that you have all the answers. The fastest way to success is to know what you don’t know! Or to be willing to find out what you don’t know so you can determine what needs to change in your business. This will unlock creativity and help you to run your business more profitably on a day-to-day basis. Raise your hand if you think you know your blind spots! Enough said. J
Sofia Agras is a strategic business advisor and “CEO-To-Go” for entrepreneurs and small-to-medium sized businesses. She generated over $150M at high-profile start-ups through her 20 years of sales, business plan, marketing plan and business development efforts, and championed initiatives that grew a start-up from zero to Fortune 500 status in 3 years. She consulted at Harvard, is a Trainer and Speaker, and owner of www.painfreebusinessplans.com. You can register for her class, “A Double Whammy Evening: Mini Business Plans and Legal “Must Do’s”: Pain Free Solutions and Action Plans for Total Business Success, with Sofia Agras and Dava Casoni, Esq. here: http://totalbusinesssuccess.eventbrite.com/
