What are the top start-up business mistakes?

**phppoddotcom** · 04-22-2008 10:05 AM

A mistake that people often do when running a start-up is implementing a new technology when they have no certain idea of developing it or when it is still early for the technology to be implemented.

**florie** · 04-25-2008 05:11 AM

Trying to do it all by yourself and not asking for help is also one of the reason why people find it hard to start a business. I mean, you can always have skilled people working for you for costs that is right on the budget.

You just have to have the proper resources and people and your business will be up and running in no time.

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**Scunizzo** · 04-25-2008 11:23 AM

Thank you everyone for your feedback! We've just posted the final results in our blog:

YoungEntrepreneur.com Blog » The Top 20 Startup Mistakes - Entrepreneur Poll Results

Enjoy!

**pugsley** · 04-25-2008 11:43 AM

I think maybe you left one out, start a business in a market that you have a passion for or at least get a lot of enjoyment in doing, Then first do the research to make sure there is a market to support that business before you just jump in.

Pugsley

**fundfindr** · 04-28-2008 05:57 PM

This is a great topic and I'd like to add my two cents coming from the funding arena given that finding working capital can be a huge challenge (and make or break) for many new ventures.

Having now seen hundreds of young entrepreneurs "pitch" their ideas, I am amazed at how poorly some of the pitches are constructed. Guy Kawasaki is renowned for teaching the Art of the Pitch so I'd refer most people to him and his books/sites if they really want to dive in.

But if there was one single thing that I would say is consistently wrong with many pitches (and thus attempts to find money) - it's that too many entrepreneurs talk PRODUCT instead of talking MARKET.

The market is the opportunity, the pain that the product solves, the real potential of the business. The product and all its bells and whistles is a moot point if one doesn't identify the pain and how it is solved.

Identify the pain, find the business model for the solution, and then practice, practice, practice before you pitch.

Kevin McLeod
Development Director
fundfindr

**warrensway** · 05-05-2008 04:57 PM

Sales ... single biggest problem. If people were able to correctly seek out potential customers they wouldn't have as many problems. The lack of sales knowledge is the biggest problem I see.

**JBHitman** · 05-05-2008 07:10 PM

I dont know. From what ive learned i think its breaking out of the old ways of thinking. I have worked for a company from the ground up and I'm thinking the biggest shocker for us is the immense difference in how others have worked in the past. Marketing, Demographics, Page Ranking are a much bigger change than anything else

**fundfindr** · 05-06-2008 07:28 PM

Originally Posted by JBHitman

I dont know. From what ive learned i think its breaking out of the old ways of thinking. I have worked for a company from the ground up and I'm thinking the biggest shocker for us is the immense difference in how others have worked in the past. Marketing, Demographics, Page Ranking are a much bigger change than anything else

JB, I totally agree with you for web-related businesses. I also work on some projects that are constantly trying to find the balance between the old-school business savy of the past with the new-school approach of leveraging technology. Quite the challenge but more related to the later stages of business where the decision making revolves around a team and not a single entrepreneur.

**James Strachan** · 05-19-2008 11:27 AM

My biggest problem was not finding my target market.
I now know that finding your target market is crucial for building a successful marketing campaign.

Its important that your customers know that you exist.

**dougmcisaac** · 05-29-2008 09:59 AM

Some great ideas already. Here are some additional thoughts:

Chasing deals instead of making strategic decisions
Giving too much ownership away
Thinking that your employees are your friends
Not protecting your intellectual property
Poor financial management

Doug

**matt_15** · 06-01-2008 07:16 AM

forgetting about marketing, and expecting the customers to land at youre feet

negative thoughts

no business plan

no self confidence

all about the money, only doing it to buy a ferrari

dotcom BOOM, expecting that because you set up an online business, it will automatically make you hundreds of millions, it WONT

; follow these and you will fail in business

**crackah** · 06-01-2008 08:53 AM

I really dont know if a business plan is all its cracked up to be.

I have spoken to a mate, who runs a business with almost 200 employees and he has no business plan, its all in his head.

I never had a business plan for my business when I started, and doubt it would have helped one bit.

Just my opinion.

**rejoice** · 06-01-2008 09:16 AM

Originally Posted by hugh009

NOT running your business using SYSTEMS that allow you to work ON your business instead of IN it!

Remember only moving product or a service = profit!

Hugh

i second systems... the more 'autopilot' ---> the better!!!!! and the fact that most people don't know how to market their business... and i don't mean running poorly written ads and shonky 'click here' banners

**matt_15** · 06-01-2008 02:05 PM

In most cases, a business plan is vital, when setting up a large company. Maybe not for a small business. But if you are going into a big venture, you may need to get investors for capital. If you want capital from an investor, you NEED a business plan with weight behind it. otherwise they wont think twice about backing you. But I agree, you dont need a business plan necessarily.

**donnapacheco** · 06-05-2008 02:01 PM

Originally Posted by fundfindr

This is a great topic and I'd like to add my two cents coming from the funding arena given that finding working capital can be a huge challenge (and make or break) for many new ventures.

Having now seen hundreds of young entrepreneurs "pitch" their ideas, I am amazed at how poorly some of the pitches are constructed. Guy Kawasaki is renowned for teaching the Art of the Pitch so I'd refer most people to him and his books/sites if they really want to dive in.

But if there was one single thing that I would say is consistently wrong with many pitches (and thus attempts to find money) - it's that too many entrepreneurs talk PRODUCT instead of talking MARKET.

The market is the opportunity, the pain that the product solves, the real potential of the business. The product and all its bells and whistles is a moot point if one doesn't identify the pain and how it is solved.

Identify the pain, find the business model for the solution, and then practice, practice, practice before you pitch.

Kevin McLeod
Development Director
fundfindr

I completely agree. As a venture capitalist, it really boils down to "What's in it for me?" Will it make me money? Or is it a fantastic product that takes millions of dollars to make with no one who can afford it? If it's the latter one, don't bother.