Top 10 Stupid Mistakes Entrepreneurs Make

I've made my share of stupid mistakes and will probably continue to do so. The difference is that I take the time to analyze and accept the fact that instant gratification (money) produces business headaches later most of the time. Here's a summary of 10 stupid mistakes I've seen over the years:

1. Bartering for services/products that impact the bottom line. I’ve made this mistake more times that I care to admit. Bartering within small business is a standard practice, “I’ll provide 4 coaching sessions if you create a web site for me,” kind of deal. Although bartering can be good, it’s the wrong thing to do when the solution being exchanged and the solution being received has a direct impact on your cash flow. Why? 99% of the time both parties involved will not function at the level of expertise that both of you would function if this was a cash transaction.

2. Selling to Everyone. Entrepreneurs of all shapes and sizes make the mistake of defining their target market as ‘everyone!’ You can’t spend marketing dollars selling to everyone. That’s why you choose and organize a buying target market that not only can afford your solution but also has the buying power to take action and buy!

3. Thinking all business is built on relationships. Don’t get me wrong, relationships are a major factor in business, but a lot of entrepreneurs forget to bring the value to the table. Just because you meEt someone at a networking function, put them in your database, and make a couple of phone calls, and possibly treat them to lunch…does not mean they will do business with you. Be careful building your business on just relationships, it’s truly about building trust with a buying target audience that will bring in the cash flow quickly, easily, and profitably.

4. Believing that procrastination is a weakness. If you’ve been a subscriber for a while, you’ve heard me talk about procrastination. Why do I know so much about it? Because I’m the queen of procrastination, I have to really work hard at completing things I start. Procrastination is a choice, it’s not a weakness. I know exactly when I’m procrastinating and why and it has nothing to do with a skill that I do not have. It has everything to do with choosing to not do something because of…whatever I can think of. You know what I mean?

5. Offering more than two things for free, ever! It took me about 5 years to transition from free to fee. I know, it sounds crazy when you think about it. But, I gave everything away for free, especially in the beginning, thinking that it would bring me business, build trust, and all those wonderful things ‘they’ tell you. I was giving away great business knowledge, pro-bono coaching time, pro-bono training, etc. I thought I would allow interested entrepreneurs to try Effició in hopes that they would buy. But, why buy when you can get everything for free! My wisdom, knowledge, experience, and implementation skills are very valuable. Free can be a very costly word if you use it too frequently.

6. Following the herd and/or doing what everyone else is doing. I’ve mentioned this before – are you the sheep or the wolf? I don’t mean that question literally but it put things in perspective for me as I was building Effició. I’ve always been the one who does things a little differently, and most of the time I’m going against the grain. Entrepreneurs make the mistake of doing everything other people tell them to do without taking the time to research and apply the information based on their business, their mindset, their abilities, their knowledge, and their heart. Start doing things based on the above and you will no longer be a follower; you will emerge as the visionary leader.

7. Failing to Systemize and Optimize. As an entrepreneur, you need to find ways to deliver your solutions quickly, easily, and profitably. Don’t fall in the trap of doing business activities that could be automated, and over time optimized for maximum value. Also, creating systems and processes forces you to document. It’s important to get all those procedures including the ones that you know like the back of your hand, documented into a workable format that can be transferred to members of your team now or in the future. I don’t plan on doing everything I’m doing for the life of my business, I will soon have a team of people on various projects. In order for them to transition into my company easily, all systems and processes are documented into workable chunks. Believe me, this saying is true: “The money is in the systems.”

8. Not sharing your resources, tools, and time. I recently interviewed Sheryl Lee Ralph, a popular actress and celebrated entrepreneur. The show was about giving and sharing – the entrepreneurs secret weapon. Something that Sheryl said sums up this mistake: “How could you not?” Meaning, how could you not share? There’s plenty of business to be had, you just have to do the work and protect your investments.

So don’t be afraid to share a wonderful resource that can help someone avoid a big mistake. Don’t be afraid to give your time to a worthy cause because you care not because it’ll bring you business. Don’t be afraid to mentor a high school student even if you have five children of your own. Don’t be afraid to share valuable tools that can help someone build an empire. Don’t be afraid to share – you will get back more than you give internally and externally.

9. Faking it till you make it. Just don’t do it! Some entrepreneurs think they have to become actors. Don’t pretend to be someone or something you’re not, your true colors will shine through eventually.

10. Giving Trust without Validation. I’m not talking about the positive aspect of providing someone your trust, I’m talking about believing everything you read or hear without validating the source in the business world. I do believe that you have to trust in order to move forward and sometimes that trust is well deserved, but there are times when we become just plain old gullible. Just make sure to investigate and validate claims, products, information, tools, etc. that costs you money to utilize. Believe me, it will save your bank account in the long run.

Whew! These are some big mistakes that can cost big bucks, believe me I know. Although I haven’t made all of these mistakes, the ones I did make taught me many valuable lessons that form the culture foundation of Effició today. (o; © Effició, Inc. Sherese Duncan

Comments? Questions? Email Here

© HowtoAdvice.com

How to Advice .com