1. Half-Baked Business Plans. We couldn’t agree more Brad, but we prefer a fishing metaphor: i.e., a dangling worm won’t hook the beast. So if you want to put food on the table, fish smart. Bait up with stickypitch.com, it’s formulated to make sure your Big One won’t get away.
2. Focusing too Much on the Idea and too Little on the Management Team. We’ve consistently heard that its not enough to invent a better mousetrap and that you also have to assemble a team that can do more than “set it and forget it.” On a related point, we add the notion that you should have clear focus on how you’ll maintain your market entitlement: i.e., there’s no use in going into business to prove a market that someone else can take away from you.
3. Not Asking for Enough Money. Brad notes, “In a 2004 U.S. Bank study of reasons for small business failures, 79 percent cited “starting out with too little money” as one of the causes of their collapse.” Take the time to do the financials right.
4. Having too Many Lenders or Investors. Too many cooks spoil the broth: i.e., managing too many relationships takes time and focus away from implementing your business. Minimize the number of investors to minimize suck-up time.
5. Failing to Get the Proper Legal Agreements. It’s about money, so get the paperwork done, particularly if your raising money from Mom and Dad, family members and/or friends.
6. Poor Cash Flow Management. Brad notes, “There’s no point in launching a business that will eventually sink under the weight of your investors’ demands.” Again, take the time to get your financials right.
To read Brad’s article, see http://bit.ly/WQoO9