YoungEntrepreneur.com Blog

Top 10 Movies For Entrepreneurs

February 15th, 2008 | Category: Entrepreneurship

What are the best movies for entrepreneurs to watch to get motivation, ideas, and insights into growing their businesses? Adam Toren, co-founder of YoungEntrepreneur.com gives us his Top 10 list of movies that every young business owner should go out and see:

1) e-Dreams
An in-depth look at the highs and lows of a dot com. The movie follows the founders of Kozmo.com as they raise money and file for IPO. But no one has predicted the market crash in April 2000.

2) Startup.com
Traces the birth and failure of new media company govWorks.com

3) Triump of the Nerds
It happened more or less by accident; the people who made it happen were amateurs; and for the most part they still are. From his own Silicon Valley garage, author Bob Cringley puts PC bigshots and nerds on the spot, and tells their incredible true stories. Like the industry itself, the series is informative, funny and brash. Some of the episode participants include: Bill Gates (Chairman of Microsoft, the richest man in the world), Steve Jobs (Hippie co-founder of Apple Computer; CEO of NeXT Computer; and the man who wanted to change the world), and Steve Wozniak (Co-founder of Apple Computer; engineering genius, practical joker).

4) Jerry Maguire
When a sports agent has a moral epiphany and is fired for expressing it, he decides to put his new philosophy to the test as an independent with the only athlete who stays with him.

5) Big Night
A failing Italian restaurant run by two brothers gambles on one special night to try to save the business.

6) WallStreet
A young and impatient stockbroker is willing to do anything to get to the top, including trading on illegal inside information taken through a ruthless and greedy corporate raider whom takes the youth under his wing.

7) Boiler Room
A college dropout gets a job as a broker for a suburban investment firm, which puts him on the fast track to success, but the job might not be as legitimate as it sounds.

8) Barbarians at the Gate
F. Ross Johnson, the CEO of RJR Nabisco decides that the time is ripe to take over his own company and enlists American Express. This kicks off a tide of other firms swarming in to tender offers. The outline of the film follows the actual takeover of the RJR Nabisco empire in a tongue in cheek way.

9) The Secret of My Succe$s
A talented young man can’t get an executive position without rising through the ranks, so he comes up with a shortcut, which also benefits his love life.

10) Pirates of Silicon Valley
This film is the semi-humorous documentary about the men who made the world of technology what it is today, their struggles during college, the founding of their companies, and the ingenious actions they took to build up the global corporate empires of Apple Computer Corporation and Microsoft Inc..

What are your thoughts on these movies? Are there any others that you would add to the list?

Please make sure to also vote in our YoungEntrepreneur.com poll on who you think are the top celebrity entrepreneurs. The results will be coming out in a couple of weeks!

Evan Carmichael
YoungEntrepreneur.com Blog Manager

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18 comments

500 RSS Subscribers!

February 14th, 2008 | Category: Entrepreneurship

Yesterday we crossed the 500 mark in RSS subscribers (502)! Thank you for your continued loyalty in reading the blog. To celebrate and to welcome some of our newer readers I thought I would showcase our top posts of all time, as judged by number of comments:

65 Comments

The Top 10 Mistakes People Make When Starting A Business

18 Comments

A Powerful Way To Get Online Rankings: Sitemaps

17 Comments

Is Google’s New Algorithm Update Impacting Your Site?

10 Comments

How To Make Yourself Look Big

9 Comments

Writing Press Releases For Your Business - Part 1

8 Comments

7 Comments

6 Comments

5 Comments

4 Comments

We’ve come a long way since re-launching the blog and I’m looking forward to continuing to provide you with tips and ideas on how to launch and grow your business.

Next step is 1,000 RSS readers!

Evan Carmichael
YoungEntrepreneur.com Blog Manager

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1 comment

Color Your Call To Action

February 13th, 2008 | Category: Entrepreneurship

Ann Smarty, author of SEO Smarty, wrote an interesting post about the colors you use in your call to action on your website.

According to Ann, here are how the colors match up:

Red:

Increases your heart rate by activating your pituitary gland
Where to use: a classic call to action color
Drawbacks: might be associated with debt and danger

Yellow:

The first color a person sees
Where to use: draw attention to your call-to-action

Orange:

Combination of aggressive red and cheerful yellow
Where to use: perfect call-to-action

Blue:

Drawbacks: may make your visitor reconsider the action

Green:

The easiest for the eyes
Where to use: good for testimonials, founder’s story, etc

White:

Gives other colors prominence
Where to use: make your call-to-action stand out

Have you experimented with color for your call to action on your websites? I would love to hear your experiences!

Evan Carmichael
YoungEntrepreneur.com Blog Manager

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6 comments

Do What You Do Best - The Intel Guys

February 12th, 2008 | Category: Entrepreneurship, Modeling Masters

As self-described “accidental entrepreneurs,” Robert Noyce and Gordon Moore created what would become by far the foremost semiconductor maker in the world. They didn’t set out to create a billion dollar company or to transform an industry, but that is exactly what the pair did when they founded Intel in 1968.

Though best known for its Pentium and Celeron microprocessors that can be found in more than three-quarters of the new PCs that come today, Intel also makes flash memories and embedded semiconductors. Now, with over $35 billion in revenue and annual growth standing at 13.5 percent, the legacy left by Noyce and Moore remains one of the strongest examples of innovation and entrepreneurship in the 21st century.

Today, Intel is ranked 49th on Fortune 500’s list of the top revenue grossing companies. Noyce and Moore may no longer be in charge of the daily running of the business they first founded in 1968; however, their impact on not only the company, but also the entire industry can still be felt.

The maker of motherboard chipsets, network cards, flash memory drives, graphic chips, embedded processors and more, Intel is an innovator and a leader in the world of electronics and computing. How did two scientists who knew nothing about business become two of the most successful examples of entrepreneurship in history?

There is such a thing as a natural-born entrepreneur, for whom the entrepreneurial urge drives everything, and who can make a business out of almost anything. But the accidental entrepreneur like me has to fall into the opportunity or be pushed into it. Then the entrepreneurial spirit eventually catches on.

To me the opportunities to start a company are few and far between. I’m not the sort of entrepreneur who can just say, ‘I’m going to start a company. Let’s look for an opportunity.

I had no training in business after my sophomore year of college. I didn’t take any courses outside of chemistry, math, and physics. Most of what I learned as an entrepreneur was by trial and error. I think a lot of this really could have been learned more efficiently.

We saw semiconductor memory as an opportunity to make something complex and sell it for all kinds of digital applications. So that was the first thing we went after. That was really the basis of our business plan.

Fortunately, very much by luck, we had hit on a technology that had just the right degree of difficulty for a successful startup. This was how Intel began.

Long before Apple, one of our engineers came to me with the suggestion that Intel ought to build a computer for the home. And I asked him, ‘What the heck would anyone want a computer for in his home?’ It seemed ridiculous!

“We had no idea at all that we had turned the first stone on something that was going to be an $80 billion business.

In retrospect, there are a lot of things we could have done better along the way. But, we did enough right to grow a fairly large company.

It’s important to remember one thing that is essential for any entrepreneurial organization. Do what you do well. Look at other things as incremental opportunities, but don’t change the basis of what you do well.”

Evan Carmichael
YoungEntrepreneur.com Blog Manager

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2 comments

How To Do A Media Interview - Entrepreneur University

February 11th, 2008 | Category: Entrepreneurship, Entrepreneur University

We started Entrepreneur University in August with Andy Marken and his advice on how to How To Create A Sales Incentive Program. To celebrate our six months of Entrepreneur University I wanted to share more of Andy’s advice with you.

Andy is the brains behind Marken Communications, a full-service marketing and communications company. Andy’s advice is on how to create a sales incentive program for your small business.

“In the TV series M.A.S.H., Hawkeye leaned over a friend who had been wounded and the friend said faintly, “I didn’t even hear the one that hit me coming.” It’s a similar concern that makes many executives avoid media interviews. They worry about the question that can make their company and them look foolish…or worse.

But knowing how to communicate about your business is as important as knowing how to run it. There are times it may be even more important. A positive story can produce orders. It can stimulate investor interest. A less than positive story can depress the stock value. It can demoralize employees. It can negatively impact sales.

If executives routinely close the door to legitimate interviews, they appear to have something to hide. If they open the door too wide, they can expose too many secrets and –in the case of public firms – see the company’s value suffer. What is not said may be more important than what is said and how it is said.

You have to understand that coverage isn’t always positive and journalists aren’t there to be your friends and to help you advance your agendas. Their job is to develop a credible story for their audience, not write a puff piece about you. If the article shows a less than perfect company, product or executive it is balanced and it is credible.

As a part of the total picture of business in your industry, your opinions and activity — or lack of it — are important to the media and their readers/viewers. Journalists have two obligations – to be professional and to fairly, accurately present the information to their audience. All of the rest is your responsibility.

Astute and prepared executives can turn the interview, even in an unpleasant situation, into a positive and beneficial effort for the company.

Interview Timing There are times when an interview just isn’t possible. Don’t explain your inability to talk with weak excuses.

Present yourself clearly and in a straightforward manner. If possible, suggest an alternate date and/or time.

If you give reporters a legitimate reason for not granting the interview, they will understand even though they may not like it. The key word is “legitimate.”

Reference Material It’s surprising, but many organizations don’t have written background information on the company, key personnel, products and markets. Such reference material can often save both the reporter’s or broadcaster’s time and yours.

An information package should include the following: Company — Information should be available that covers the history of the company, i.e., its founding, product lines, size, sales volume, number of employees, officers, areas of expertise and industry position.

Key Personnel — There should be a biographical sheet on every key member of the firm. It would include information on schooling, business background, history with the company, present duties, special honors and similar items.

Photographs — Have current quality photos of key people, as well as product shots, plant photos, application photos production shots and similar items that visually tell the firm’s story.

Current Product Literature – the reporter won’t copy directly from the literature, but it gives him or her a better idea of who the company is. Copies of past annual reports as well as general and technical literature are often helpful.

Other — There may also be some special information the reporter or broadcaster is looking for, so ask ahead of time. Then, if the material is available, it can be given to them at the interview.

Interview Types Most reporters are simply hard working individuals who are simply want to educate, inform and enlighten their audience. Most want to finish the story so they can do what you want to do at the end of the day — go home to dinner and enjoy their friends and family.

Some reporters and interviewers like to add personality and color in their pieces so they will ask questions about you, your background, and your family. If the information is meaningful to the article, provide it factually.

Some journalists like to be controversial so they do their homework prior to the interview. These individuals ask probing questions regarding your past, the company’s legal activities, market or company downturn and ramifications. If you are prepared with the information and have all of your facts available you can handle the situation very well.

A few journalists like to ask the same question over and over a number of different ways. They are looking to make certain your facts don’t change. Rather than repeat the answer, simply say it is a question that has already been answered and use the moment to bridge into information that further reinforces the company, its products and you.

There are occasions you’ll encounter a journalist who is either very technical by training or believes he or she is technically competent. If the interview is for a trade publication and the technical questions/answers will help the reader answer with clear, solid facts and information. If the reporter is simply showing his or her expertise, stick to the general information the audience needs. Don’t help the reporter lose sight of his or her audience just to promote their egos. The resulting story can be a complete waste of your time at best or at worst make your company and you look foolish.

There is also the hard core business piece that every journalist likes to do because it is the news of the day. These are articles regarding what is in store for the company given lawsuits, downturns, product recalls, etc. They also want to gain an insight on public offerings, quarterly/annual earnings, expansion/contraction, market shifts and other business specific news.

Regardless of the interviewer’s approach; don’t fudge, spin, lie or wing it. Know your facts and your information and present your answers clearly and concisely. Don’t cover things up hoping that they won’t be discovered. Leaks will happen. When the questions are asked provide your answers in terms of the key points and key issues you have developed for the interview. Imagine the type of story you expect to appear and present your information accordingly. Keep your emotions under control and you can maintain control of even the worst situation.

Commit your information and your key points to memory but don’t over rehearse. Then when you prepare for the interview take a number of deep breaths, relax and provide the news to the journalist’s audience.

The Interview There are usually categories of questions that arise in an interview:

* Questions you are willing to answer and want to answer

* Questions you are unwilling to answer and will not

* Questions you don’t want to answer but will

* Questions you simply can’t answer Life would be ideal if all of the questions asked were of the first kind. The second group is the one that strikes fear in most managers because they don’t know exactly how to handle the situation.

Perhaps you simply don’t have the authority or background to comment on those areas. The information could be confidential. Maybe those areas are still being evaluated, and a corporate policy or direction has not been established.

The interviewer will probe for answers or statements but when questions can not be answered you need to precisely explain your inability to comment on those areas. You may also recommend an alternative point that can be discussed without disclosing the specific information and without leaving the question totally unanswered.

The third set of questions is the most difficult because your organization is usually in the spotlight or “hot seat.” In these instances, it’s best to be well rehearsed and prepared.

Because these types of questions are increasing most executives are taking media training so they can efficiently and effectively handle the “hot potatoes.” Such intensive one- and two-day sessions are actually designed to be what are termed “attack sessions.”

If the manager can learn to think on his or her feet in heated situations, then he or she can easily handle “normal” interviews. People who participate in this training can usually handle even the most searching or aggressive interviewer. Given sufficient background, they could even fare well against a grandstanding congressional investigation.

The fourth series of questions can range from those you simply don’t have sufficient information to answer to those that are so confidential that it would harm the company’s business and direction if they were answered.

If you simply don’t have the information say so. Tell them you don’t have the information and that you’ll get back to them with the answers. Keep that commitment as quickly as possible. No one likes a commitment that isn’t kept!

There will probably be times when you’ll want a member of your public relations staff or counsel on hand during the interview. We encourage our clients to do this, since it permits us to help clarify points or make certain that requests for additional information and/or photos are answered promptly.

But the public relations person should be a support for you, not a guardian of what is going on. If you anticipate having problems, go over your ideas ahead of time, and “rehearse” the interview including difficult questions which might arise. Your PR person can be a decided asset in this area, since he or she has, or should have, considerable experience in dealing with the press in all types of circumstances.

While having the company lawyer sit in on the interview may seem like a great idea, it usually leads to disaster. The worst situation we had was when the company officer insisted that the attorney be present.

Every question from the reporter was met with: “We’re not going to answer that”

“We can’t divulge that” “We have no comment on that.”

The interview was a shambles. The ultimate story did the company serious damage. The reporter simply went to third party sources and got the information without the company’s perspective being heard.

There is never a reason for no comment! If you don’t know the answer, admit it and tell the reporter you’ll get back to them with the information. If you make a mistake, admit it, correct it and move on. If there are legal or other reasons you can’t answer a specific question explain why you can’t respond to that area and return to the key points you want to present.

Off the Record If the information is confidential, you can consider speaking off-the-record. Most of the time, this off-the-record commitment will be kept. But remember you’re going out on a limb at your own risk.

If you don’t want to see something in print, don’t talk about it. If the editor, reporter or broadcaster presses the point, tell him or her frankly that the subject is one you can’t discuss at the present time and that you will provide the information as soon as you authorized to do so.

Again, when the time is right, keep your commitment. It will go a long way in building your credibility with the media. Granting Exclusivity If you are a publicly held firm there are certain clear-cut guidelines you must follow regarding exclusivity. If the information will affect the stock of your firm, then exclusivity is out of the question. If one reporter digs up the information, you need to answer in a straightforward manner.

At the same time, you should also just as quickly announce the information to the rest of the press.

If you have a major contract you were planning to announce at a press conference in a few days but also want to tell an editorial friend, you may improve your friendship at one publication, but you can make even more enemies.

However, if an enterprising reporter obtains the information by asking penetrating questions after the press conference, then it isn’t up to the company official to run out and tell everyone else. Honor the ingenuity, capabilities, and drive of the reporter who digs below the surface to get more facts.

Another common area of exclusivity, especially in the technical community, is the announcement of a major new product. If you work closely with a publication and they develop extensive copy on the new product or perhaps even a special report, then give them sufficient lead-time before you announce it to the rest of the editorial world.

Again, they have done a lot more work and deserve the edge.

Prior Publication Approval A reporter or broadcaster doesn’t have to permit you to read the galleys or view the tapes before the interview is published or aired.

We advise clients to be accurate during the interview and provide in-depth background material and don’t even ask final copy approval.

If the publication is publishing a new product announcement or industry special report, they may double-check facts and figures. They may even submit the copy (time permitting) for checking but it is only for correcting errors, not for editing.

Once you have granted the interview, you have given up your right to final approval.

Benefiting from the Interview There’s more to granting an interview than ego-satisfaction. It is an opportunity to raise the visibility and credibility of your organization and your products. But don’t dictate to your PR people that you will only do interviews with Business Week, Wall Street Journal, New York Times or the one or two “key” books in your industry. Unless you have been thrust into the senior position in the largest company in your industry or you have made a breakthrough that will benefit all of mankind, such goals are totally unrealistic.

First of all, have a sound, newsworthy story to tell and be prepared to tell the story thoroughly and effectively. Next, have sufficient background material and information available so you aren’t wasting the reporter’s time. Finally, give him or her enough time to obtain all of the information needed so that the story can be properly developed.

Know who the audience is. If you’re talking to a newspaper person, be aware of the paper’s broad audience with very diverse interests. Don’t get bogged down in technical detail. If it’s a professional or technical editor, have the in-depth facts at hand and don’t spout generalities.

Know who the reporter or editor is by name and the media he or she represents. It sounds obvious but, all too often, we’ve found that the person being interviewed didn’t recall the interviewer’s name. This is espeecially embarrassing and discourteous if you’re introducing the reporter to another person in your organization.

Being interviewed can be profitable for your organization and you. It means someone thinks you have something important to say. If you’re properly prepared, the process can be effective and it can even be fun!

Preparation ensures you’ll never get hit by the one you didn’t hear coming.”

Evan Carmichael
YoungEntrepreneur.com Blog Manager

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Review Our Blog - #18 - Unleash It!

February 10th, 2008 | Category: Entrepreneurship, Review Our Blog

Our 18th Review our Blog entry comes thanks to Kristina Libby from Global Entrepreneurship Week. You can read what she had to say about us in her blog post: Young Entrepreneurs in the Blogosphere.

Countries all around the world are joining together to carry the banner of Global Entrepreneurship Week, an initiative aimed at young people everywhere. During the week of November 17 - 23, 2008, partner organizations will conduct a range of activities - from simple speeches to comprehensive competitions - designed to inspire, connect, inform, mentor and engage the next generation of entrepreneurs.

The Week is a worldwide initiative that is linking all those willing to embrace it. Host organizations in each participating country are recruiting partners and coordinating related activities. The exact type of these activities, whether online or face-to-face, is limited only by the imaginations of the partners and the participants. And while a list of suggested activities such as invention competitions, entrepreneurship film festivals, networking events, school-based activities, and local entrepreneurship summits - will be available on the website, the actual activities conducted by partners will vary greatly.

Thanks for the review Kristina! If you are interested in doing a review, check out our Review Our Blog initiative for instructions.

Evan Carmichael
YoungEntrepreneur.com Blog Manager

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1 comment

Business Savvy - Part 3

February 09th, 2008 | Category: Entrepreneurship, Business Savvy

Evan Carmichael
YoungEntrepreneur.com Blog Manager

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2 comments

bizSugar Review

February 08th, 2008 | Category: Entrepreneurship, Review

This is a paid review of bizSugar through ReviewMe. For only $100 you can get your site reviewed as well.

bizSugar is a Digg-like site for small businesses. The site allows business owners, managers and entrepreneurs to discover, share and vote for the best business tips, trends, news and strategies on the Web.

For anyone who is already a Digg user you will feel quite at home with the layout that bizSugar has chosen. You can view the most immediately popular stories as well as the top stories from today, yesterday, the past week, month and year.

Personally I think it’s a useful service for entrepreneurs. As a business owner I’m always trying to stay on top of news that can impact my company. Because I’m an online business as well, my focus is typically staying on top of topics related to Google, SEO, link building, Page Rank, online marketing, etc.
I have found it difficult to use Digg to get this information. I have customized it through my account but there is no category for “Entrepreneurship.” The closest you get is “Business and Finance” which covers a range of articles that I have no interest in. As a result I waste my time sorting through irrelevant material to get to the stuff that I want.
bizSugar helps weed through all the useless posts to bring you hot information that is relevant to running a business. When I first clicked on the homepage I discovered a number of interesting articles that intrigued me to click further. They included:

So far so good bizSugar! These were great articles!

If you come across a story that you think would be of value to other business owners you can add it to the bizSugar system and vote on it. The more bizSugars, or votes, that a story gets, the higher up it ranks, just like the Digg system.

The website is coming out of beta so if you haven’t heard the name before, don’t worry.

Founder John Holsen (usename JohnH) is the most active contributor to bizSugar but he’s not the only one submitting content. There is an active community and, so far, the stories that they are adding are certainly of higher value to business owners compared to what you can find on Digg.

bizSugar gets two thumbs up in my books. I will definitely be back to check up on the latest small business news and hope their membership base continues to grow and add additional quality articles.

Once again, their website can be found at: bizSugar. If you would like a review of your website, you can get one for only $100 through ReviewMe.

Evan Carmichael
YoungEntrepreneur.com Blog Manager

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4 comments

Has Google AdSense Lost Its Mojo?

February 07th, 2008 | Category: Entrepreneurship, Internet Marketing

Website owners who use Google AdSense as a way to monetize their creations are wondering if AdSense has lost its mojo. Many website and blog owners are reporting significant drops in January and February and popular blogs on SEO are covering the topic as well:

People are speculating as to why the drop has occurred. Are the big name advertisers cutting back on their ad spending for 2008? Has click fraud gotten the better of Google and people are turning elsewhere to spend their marketing dollars? Is there a looming recession that will impact every website owner who is trying to sell ad space? Is it time to move away from Google to some of the other ad networks?

One element that has undoubtedly impacted earnings is Google’s modification of the clickable regions of the ads. Each ad typically has a headline, two lines of description and a link. Late last year Google made a change where only the headline and the link are clickable where the description is no longer count as a click for the ad.

I do partially rely on Google for income on my site so I thought I would compare my stats from January 2007 to January 2008. I can’t share exact figures without violating Google’s Terms of Service but I will share the following comparison data:

31 days # impressions: increase of 150%
31 days CTR: decrease of 40%
31 days Page eCPM: decrease of 30%

Overall the total impressions and the number of clicks have gone up when comparing January 2007 to January 2008. This simply reflects the growth of my site with the work done over the course of a regular year.

The disturbing statistics are the decrease of click through rates (CTR) by 40% and the decrease of the effective cost per thousand (how much money I make off of Google AdSense for every thousand people who visit my site - eCPM) by 30%.

From the data on my website it seems that when comparing January of this year to last year Google is actually paying more per click but less people are clicking through. This can easily be calculated because the drop in eCPM is less than the drop in CTR (ie. I make 30% less per thousand visitors because of a 40% drop in click through rates not because the ads aren’t paying as much per click).

Overall I made far more money this January (almost double) compared to last January because the biggest increase was the 150% in impressions. Also keep in mind that this is only a one month comparison and that many websites might have a cyclical nature to them.

So why is the CTR dropping? The clickable region is definitely one reason. Perhaps the ads being shown are less relevant than they used to be or the new content / layout that I’ve added doesn’t convert as well as the old stuff.

I’ll be spending some time over the next couple of weeks to better understand what has changed on my end over the past year and what might have had an impact on my AdSense earnings.

Do you run AdSense on your webpage? What have your experiences been?

Evan Carmichael
YoungEntrepreneur.com Blog Manager

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9 comments

The Top 10 Mistakes People Make When Starting A Business

February 06th, 2008 | Category: Entrepreneurship

What are the common mistakes that new entrepreneurs make and how can you avoid making them yourself? Here is our top 10 list of mistakes people make when starting a business:

1) Not enough money.

The most common reason why new businesses shut down is that the owner runs out of money. Cash flow is critical to a startup business. You could be profitable and still have to close your doors because your customers are taking too long to pay you. Cash is king in a startup venture and you need to prepare for it.

One option is to make sure you have enough startup capital from your own investments or outsiders (bank loan, private investors, etc). A second option is to ease into the business so that you start doing it on a part-time basis until you know that it will make enough money to support you.

2) Not thinking survival.

Starting a business is all about survival. How do you stay around one more day so that you can learn more about your market and close new customers?

At the beginning stages of a business this may mean doing work that might not be completely what you want to do but it helps pay the bills. You need to do whatever it takes to survive and get through until the business can fully support yourself.

3) Losing momentum.

Many new entrepreneurs have ambitions to start a business so they create a website, try to make a few sales, go all out for a few months and then stop completely. Building a business is all about momentum. If you had 24 hours to spend on a business they would be put to far better use by spending one hour a day than for 24 hours straight.

It takes time to develop a new company and for people to react to what you have to offer. Never lose the momentum and even if your business is only a part time initiative for you at the moment, make sure that every day you are making progress of some sort to move your company forward.

4) Doing it all alone.

Nobody is perfect or has the skills to do everything themselves. You need to understand what it is that you bring to the table and what you need to surround yourself with. If, for example, you are very strong at inventing but don’t want to sell then you need to find a salesperson to help you.

You won’t succeed by forcing yourself to do things that you truly don’t enjoy and will never be good at. Know where you stand and what value you can offer. By getting people around you who complement your skills, you will be able to achieve your goals and have a lot more fun along the way!

5) Not hiring right away.

You should begin looking at who can be brought on board to help you from the first day of starting your company. There will be tasks in any business that you, as the owner, should not be focusing on if you hope to build any sort of sizable organization. Why are you doing admin work when you should be out closing customers, talking to the media, and landing new partnerships?

But I’m broke! How can I hire someone? Even if you have a $0 budget you can find people to work for you through high school and foreign student internship programs. Once you have a budget, you can bring people on board for as little as one hour a day (what I first did) and then increase their hours when you can afford it. You need to be spending your time working on the business and not in the business.

6. Doing it just for the money.

If you don’t truly love your business then you won’t be successful. If you read the stories of famous entrepreneurs and how they built their organizations you will find that it all comes down to the root of loving what you are doing.

Money is definitely important, as most companies are for-profit enterprises, but it will often take a long time to come and if you don’t truly enjoy your work then you won’t be able to convince yourself to keep going. You can only do something that you don’t really love for so long before you give up.

7. Getting to year 1, past year 2.

Many entrepreneurs have a hard time getting to the end of year one. Typically it’s because they started the business on a whim and got excited about an opportunity but didn’t do the proper research. These entrepreneurs usually run out of money and close down after a few months.

A second challenge is getting through year two. It usually takes three years of hard work to make a business. Year one is all about the excitement of getting started. You’re high on energy and ready to take on the world. In year two entrepreneurs often find themselves still not making much money and the startup excitement has faded. You’ll need to work your way through the downturn and know that the money is coming if you keep at it.

8. Don’t build around a customer.

The best way to make a lot of money quickly is to find a customer who has a problem and is willing to pay you to solve it - and then you go out and build the solution. Most entrepreneurs take the opposite mentality of “if I build it, then will come” only to realize that they’ve built it and nobody is coming. Instead of talking to customers as to why they’re not coming they decided to continue building and building. Soon they find out that they’ve invested years of work and nobody is interested in buying from them.

The companies with the highest failure rates are restaurants because they are usually built around an owner’s personal tastes. Meanwhile, the entrepreneurs with the lowest failure rates are lawyers and accountants because they are based around a service that we all need (whether we like it or not!) Talk to potential customers, see what they are interested in, identify who has money and what their pains are and then create your product / service around them.

9. Don’t seek mentors.

A great way to get a business going is to find out what other people have done to achieve success and implement those strategies into your own company. Find mentors who have knowledge of your industry and will give you time out of their day to help you.

You could set up a formal board of advisers and compensate people for their time but if you’re a startup you can play on the fact that most entrepreneurs are willing to help out a fellow business owner as a way to give back. If you show genuine appreciation and approach the right people, the advice you get will help make or break your company.

10. Don’t get involved in the community.
Tied in with not seeking mentors is not getting involved in the small business community. Countless opportunities are generated by connecting with other young entrepreneurs and finding out what they are up to and how you can help. You will get new business opportunities, partners, investment, media attention, ideas for productive tools to use, advice for your company, and many other resources that otherwise would take you years of trial and error to figure out (if you ever do at all).

A great community to be involved in, needless to say, is the Young Entrepreneur Forums, where there are over 32,500 entrepreneurs waiting to meet you and help you grow your business!

Evan Carmichael
YoungEntrepreneur.com Blog Manager

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