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In my first business, we spent the first three years working 8 days a week in the business (and not on it). We weren’t making any progress and in fact we had thoughts of calling it quits. We got a lucky break when a national retailer saw and fell in love with one of our products. That was our saving grace. »
It forced us to take a step back and take time to think about how we were going to deliver that product on a massive scale. I think many new entrepreneurs spend way too much time working in their businesses and not enough time working on their businesses. If you want to grow, then you have to carve out time to think strategically and think about the big picture, which is difficult to do when you’re first starting. »
Many times, I see first-time entrepreneurs start their businesses without really understanding the total scope of work that’s going to be required. This could relate to the overall investment that’s necessary, the detail in your plan of action, or most importantly, personal capabilities and time. »
While entrepreneurship is a continuous learning process, there still needs to be a solid foundation in order to grow the company. The amount of money you initially invest may not even be a fraction of the total amount needed, when accounting for mistakes and unforeseen events along the way. It’s difficult to balance a lean environment with needing the online business tools to truly succeed. You don’t want to find yourself in a bind where you can’t hire the talent necessary to complete task the right way, and you definitely will not have the time to learn everything yourself. »
My advice is to plan for a solid buffer with your cash flow, create checks and balances to keep that plan in line, and surround yourself with individuals that will free up your time and resources. »
After quitting my own corporate job two years ago with no plan B, as well as from interviewing several guests about this topic on The Quarter Life Comeback Podcast, I believe that one of the biggest mistakes people make when starting a business is thinking that it’s going to be a kind of golden ticket to creating the life that they want. »
This often stems from intense unhappiness in their current work situation, as it did for me. However, simply quitting to pursue your own thing causes a lot of stress (not to mention more intense unhappiness) if you’re starting from scratch. »
These days, I advise young entrepreneurs to see their current employer as an investor in their own business, while they grow their business on the side. One of my guests mentioned that a day job doesn’t need to be seen as a bad thing as long as it helps you develop the skills, capital and/or network you’ll need when you do decide to go out on your own. So, learn to see and appreciate the job as a means to an end. »
Finally, another crucial mistake I learned from a previous blog I ran is to get REALLY clear on who you’re speaking to and what you’re speaking about before you get started. If you try speaking to everyone, you’ll end up speaking to no one. And don’t be afraid of being too niche. If you’re 1 in a million, there’s still 7000 other people just like you in the world. »
The number one problem that most entrepreneurs make is being overly optimistic, which often leads to them running out of cash or being cash strapped. Money problems can be seen from a mile away. »
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