What are the top start-up business mistakes?

[TheBigIdea]

my top mistake during one of my earlier ventures was not knowing that the business could not be scaled. In the end, I worked for the business, and not the other way around.

so guys, always think of scaling upwards!

[evolvingentrepreneur]

Raising money too soon because you rob yourself of the invaluable opportunity of learning how to bootstrap a business.

There will come a time when you are cash poor. How will you know how to handle yourself when that time comes? If you've never had to bootstrap then you will be in for a tough time.

[ronnie11]

Not building around a customer is a big folly I believe that hurts a business a lot!

[paulene]

For me the reason is no business plan, not enough money and not asking around

[brandon123]

I think Losing Faith and Ambition should be in there somewhere. Cause often people give up not knowing their race is far from over.

Brandon

[WebHoster]

I read a book once that was the ten best and worst decisions by CEO's in Australia. Quite a good read... not a funny as a guy I know that worked at onetel at the time of the collapse..... the stories he can tell... Makes you wonder how they lasted as long as they did....lol

[sagestatham]

I believe the (3) top challenges to online business that can turn entrepreneurs away from the dream is:
- lack of personal development, starting and maintaining a website takes endurance of the mind. when situations donot go according to plan, you have to be prepared to take the good with the bad.
- lack of money to continue spending the time, energy and money on further research products and programs for the success of your online business
- lack of real support from an online expert.

Hope this helps.

Sage

[rosesmith]

Business plan mistakes are common with entrepreneurs starting their first companies. They don't think through the actual benefits of a business plan; instead, they simply write one because they know it is what they are supposed to do. Keep in mind that a business plan serves a valuable purpose.

1. The Business Plan Contains Grammatical Errors

An entrepreneur does not have to ask his high school English teacher to correct his business plan, but a start-up business should be run by a reasonably intelligent human being. Grammatical mistakes, such as spelling and punctuation errors, are red flags that the plan was written by someone who just didn't care.

To avoid these types of business plan mistakes, it is important for start-up entrepreneurs to review it carefully for the tiniest of errors. The document should flow easily from one section to another and the copy should be free of mistakes. Don't rely on the spell- and grammar-check capabilities of software applications, either; they won't catch all the errors.

2. The Business Plan is Not Written with Investors in Mind

A business plan is intended for many purposes, not the least of which is securing financing from outside investors. When writing such a plan, entrepreneurs should step into the shoes of potential readers to see how they might perceive it. Does the business plan tell investors why they should put up their money for this enterprise? Is it persuasive enough? Does it answer the most important questions?

Play devil's advocate to avoid business plan mistakes. It should lay out all of the reasons why this start-up might not work out, then strategically outline the ways in which the business owner will ensure those issues do not result in the failure of the business.
3. The Business Plan is Poorly Presented

A start-up business plan should be printed on high-quality paper and with a laser printer. This ensures the best presentation for the plan and will impress whoever reads it. A business owner might keep a copy that he ran off a standard ink jet printer on lightweight copy paper, but a more pristine copy should be reserved for presentation to investors and banks.
4. The Business Plan Makes Assumptions

There are two major assumptions inherent in most amateur business plans. The first is that investors, banks and other readers will understand the industry jargon used to explain the foundation of the enterprise; the second is that assertions will be taken at face value.

To avoid these business plan mistakes, it is imperative that start-up entrepreneurs explain everything in fine detail. Don't assume that others will know what you are talking about; put it in plain English. And if you state assertions, such as statistics or eventualities, back them up with properly-cited data from reputable resources to enhance your business start-up.
5. The Business Plan Doesn't Shine

What makes this startup business amazing? What about the business screams, "Success!" A business plan isn't just intended to outline the specifics of a start-up; it is also meant to sell the business to investors, lenders and prospective employees. Why is this business special?

Think long and hard about what will make this business succeed beyond its competitors. It could be a specific brand of customer service, an ingenious product line or an attention-grabbing slogan. Make those specifics stand out above everything else.
6. The Business Plan is Not Realistic

Every business start-up has a downside. There is no perfect start-up. Many entrepreneurs make the mistake of avoiding the negative, afraid that bringing up potential obstacles will scare off investors. Nothing could be worse for a business plan. Instead, face the challenges head-on in clear, easy-to-read text, then describe what will be done to overcome them. A realistic business plan is actually better than a perfect one.

These business plan mistakes are fairly common, but they can be overcome when entrepreneurs are honest about their start-up businesses. It doesn't take a rocket scientist to put together a slam-dunk business plan, but it does require hard work and effort.

[unlimited22]

Mentors. Gotta have them.

[georgeBmW]

business using SYSTEMS that allow you to work ON your business instead of IN it!

Remember only moving product or a service = profit

[cupbucket]

Hastiness almost always leads to mistakes.

[Devilito]

The big mistake of doing a business is a wrong planning.

[cthompson]

that's a great list and covers all spectrems that would lead to an eventual downfall but I feel that the individual's state of mind is the most important factor in the success or failure of a business. Some of the top ten seem more like excuses failing entrepeneurs would use rather then mistakes. I would say the top mistake would be not setting realistic expectations of the business.

[illmill]

I'd like to address the number one reason start-up businesses fail: not enough money. I have been helping people start their own businesses for about five years. I can't believe how many people are shocked when I ask them what kind of budget they're working with to get started. THEY HAVEN'T EVEN CONSIDERED A BUDGET! And those people are complete and utter failures. They will never succeed with out planning for anything in their life. They are the same people who are shocked that it will cost more that $5 a month to run a successful online business.

Now I'm guessing that most of the people on here are smart enough to realize that it takes money to make money. Unfortunately, not everyone was born with a silver spoon to feed their mouths. We have all heard the news reports of the bad economy and credit drying up, so where do we go to get start-up capital? I say you take advantage of this bad economy by getting the best deals on goods and services, and get your share of the bailout money by applying for US grant money to start a business. Click the trackback link to find out more.

[Jenie0109]

That depends on what kind of business you are interested with.. Do feasibility Study about the business...