What are the top start-up business mistakes?

[Scunizzo]

For the YoungEntrepreneur.com blog:

After the success of our last poll, Top 21 Celebrity Entrepreneurs, I wanted to start a new poll on the top mistakes that start-up business owners make.

We did our own list in February on the Top 10 Mistakes Entrepreneurs Make which included:

1) Not enough money.

2) Not thinking survival.

3) Losing momentum.

4) Doing it all alone.

5) Not hiring right away.

6. Doing it just for the money.

7. Getting to year 1, past year 2.

8. Don’t build around a customer.

9. Don’t seek mentors.

10. Don’t get involved in the community.

It was a popular post that made the front page of Digg and got 78 comments!

What makes your list of top start-up mistakes? I would love to hear your thoughts so we can put together a new list!

[meaghannf]

I'd say losing momentum is the cause of why businesses fail, but isn't necessarily the mistake on its own. It would seem that a lot of the other factors, especially 1, 4, 5, 7, 9 and 10 would be big mistakes and the outcome is loss of momentum. Another mistake would be surrounding yourselves with people (whether by accident or because they're family, etc) who don't believe in your idea. You need to be around positive feedback all the time.

[crackah]

Yeah, I totally believe surrounding yourself in people who dont believe you will succeed is bad. Especially when they bag out your idea, without actually giving their opinion. I have alot of people who with my current start up like that, so I choose not to speak with them. It makes you more determined I guess too

[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

[rneville]

Moving forward with developing the technology without the appropriate business planning.

[GuyBBY]

Hi, great post and below are the points that speak to me most:

1.) Not enough money.

I think this is big for those businesses that have the incentive to only reap the benefits and not focus on the longevity of your venture. Taking out $10k now may prevent making $100k in a few months. Mindsets should not be "Yeah I own a buiness I make this much" but rather "Yeah I own a business, we invested in XYZ and were able to afford this new service/expand here/etc" Also, too many people plan on the basic expenses of starting up, and don't think about the increased expense that come with a more successful, growing, developing business.

2) Not thinking survival.

Too many people think that so long as everything is done "textbook" and they have the proper set up, and plans down on paper, that they will succeed. Also, many people have the idea that it is easy to keep it up after they get an initial consumer base. Not true. small businesses are small fish in a big pond, constantly competing against emerging and growing bigger competitors that have the backing, both monetarily and resourcefully, to push them out of the picture.

3) Losing momentum.

Being satisfied and content with functioning can lead to "big headedness" and false hope that it will always be this way. You need to constantly improve your product/service, research your around-the-clock changing market and competition, and promote innovation and forward progress amongst your management and team.

4) Doing it all alone.

Lots of CEO personalities think they have to be the answer to all problems, and this is not the case. Their pride and mindset of "I must live up to this role" is skewed and they may fail to tap the most important and valuable resources that surround them in their management team and affiliates.

6.) Doing it just for the money.

If you want guaranteed income, go out and apply for a job, do your day to day task, and collect the check. Many times people try and look for the most lucrative, profitable idea that they can score an easy amount of money in so they can "live the dream". A true Entrepreneur lives the dream by constantly growing and changing to address their market and benefit those who use their product/service. You need to cover costs and have the right to strive for wealth, sure, but that will NEVER come unless you sacrifice first and realize that the longevity and future potential for your business to weather the conditions presented from changing needs and business priorities, is first and foremost, or else you have simply wasted your time and effort to have your 15min and now are snuffed out thereafter.

Good post, hope you get the responses you were looking for.

Guy

[BizGuy]

Great Post Evan!

We are looking forward to reading more of your comments on:

What makes your list of top start-up mistakes? Anyone else want to add some ideas to the new list?

Adam T.

[bwh1]

Perhaps to add

- Going wide in stead of going deep into a niche that convert
- Building sites but forget or give up to drive traffic to it
- Not using email marketing

Cheers
G.

[DPayne]

Forgetting about marketing and expecting customers to come to you.

[pboychuk]

I think doing everything alone, and hiring purely depends on the business, some businesses would save much startup expense by not having to pay an employee. I have never had an employee and dont plan to have any till i absolutely need them. I just dont trust other people and really dont need that much help

[Ahern & Brucker]

I'm reading your list of mistakes and thinking...."maybe" these are mistakes? perhaps they "could be" for some but... they don't hold true in every case... so maybe you should first call your list the list of "possible mistakes"... Don't you think?

every single item you list is just "something" that "some" people have found or used as an excuse for their failures.

I'd think you might want to find a single mistake that is universal...

Poor conception and poor planning... over enthusiasm or unrealistic goals given the persons capabilities, temperment or timing.

some glitch between the desired results and the ability to achieve them might better indicate a lack of understanding of one's self, ones nature and "true" ability. failure to properly concieve and carry out your plan can't be blamed on your 1-10. no sir.

Maybe your list should be called "the list of excuses people use to cover up their own sorry inferior results"?

anyway, I think it sounds like pablum for the weak to have a list of "reasons/excuses" and than to give them 10 reasons is even better! now, they have something to blame and don't have to look within...

[brownbob06]

...or maybe some people will read these and learn from them, which I'm sure is what they were intended for...

[Ahern & Brucker]

Originally Posted by brownbob06

...or mabe some people will read these and learn from them, which I'm sure is what they were intended for...

exactly, that's why i decided to post my reply... better they learn the truth don't you think?

[InsomnicBrain]

This is definately some good advice. Is there anything else some of you might think startups need to look for? I'm opening up automotive business in a month and I'm getting more nervous as it gets closer. I'm going to look at theses ten steps every night so that I wont' forget lol. Any other advice some of you can give me?

Thanks...Robert

[AttractiveDesigner]

I think having a mentor - a much more experienced entrepreneur that can give you some valuable advice is so IMPORTANT…especially when you are a young and overly ambitious… and with so many challenges to meet on the way to success.

Where I can find a mentor…?