10 Mistakes Entrepreneurs Make

When it comes to making mistakes, I can tell you I’ve made my share.

Each of the 10 mistakes commonly made by entrepreneurs I have made, a couple I’ve made on more than one occasion. The key is to learn, get better, and let the past be your guide for the future. 

1. Creating projections to make the numbers work

As entrepreneurs we usually believe so fully in our idea, or business concept, that we end up “tweaking” the numbers just a bit to validate our beliefs. It’s usually not intentional, and seems harmless at the time to say “yeah, maybe we’ll get 1.5% of the market instead of 1%…yep, see now look how wildly successful this will be!”.  Or saying things like, “Nah, I really don’t think expenses will run at 30% of revenue…it’s probably more like 28%”.  Do your diligence, make your projections as accurately as you can, and live with what the bottom line number tells you.

2. Overestimating market potential

You’re so sure of you product, and know your service will change lives that you just can’t see how you won’t capture at least 75% of the market…right? 

3. Overestimating necessity of what you do or provide

Not only will you capture that 75% of the market, there is no way anyone can live without you and your company. They’d be fools not to line up at your door…right?

4. Believing you can do it all yourself

So easy to fall into the trap of doing it all. Nobody is an expert at everything, and if somebody tells you they are either they are trying to fool you or themselves. Know what you don’t know, and accept the help of experts. That doesn’t make you weak, it makes you stronger.

5. Underestimate time lines

Conception to launch in 5 weeks, no problem!  Your enthusiasm will lead you to believe you can do things quicker than is humanly possible. Set timelines that push you, but keep in mind what is realistic.

6. If, then outlooks

If I get funding, then I’ll be able to hire the best managers in the world. If this idea goes well, then I’ll write a business plan. If we get some sales, then we’ll do more marketing…etc, etc.

7. Believing that short term goals will lead to long term success

If you keep achieving your short term goals, you should be on the right track long term, correct?  Not so fast, unless you tied your long term (3-5 years) goals to short term achievements, there is nothing to say you’re going in the right direction. Short term goals without a long term focus is akin to racing between telephone poles without knowing where the finish line is.

8. Underestimating current and future competition

It’s easy to think you will dominate the market due to your superior business model, and underestimate the competition. You may well dominate, but the fact that they are in the market before you gives them an inherent advantage. Respect it, and build it into your analysis. Also, remember that new competition can always enter the market, so while you kicking butt don’t forget there could be a bully out there ready to take your lunch money.

9. Thinking that if you see the value in what you do your customers will too

Don’t assume your customers are just going to “get” what you’re doing, or see the value in it just because you do. Make sure you are “reminding” them, in your marketing, advertising, and branding messages.

10. Forget that building a business is different than running one

These two are not one in the same. The adrenaline rush you feel in the startup phase is very different than what it feels like to run a business day in and day out. When that adrenaline rush wanes, some entrepreneurs will feel let down. Hopefully you’ll still find running a business exciting, but some find that they enjoy the building phase more than the daily operations of doing business.

Photo Credit: swamysk’s photostream

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