The headline says it all, but though and still, entrepreneurs will fall into these common traps! This happens because the ground you’re walking on has multiple traps that have been camouflaged, and you’re not using the proper perception and keen sensibilities; or, your confidence has turned into a huge ego that’s about to be deflated. Let’s take a closer look at what these traps are:
Traps Entrepreneurs Fall Victim to
- CBInsights analyzed 101 business failures to compile the top 10 reasons why entrepreneurs fail. From no market need to being too early, a lot of these issues can be avoided.
- Cash flow mistakes are incredibly common, and a big reason why many small businesses fail. Whether it’s overly-optimistic growth projections or the failure to understand the difference between.
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Play To Win: Avoid 5 Common Small Business Fails Using
1) Hiring your friends and family
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“Keep it in the family!” We all have heard this saying. Practicing this is a great and noble thing, but perhaps your cousin Dave, the semi-pro skier, doesn’t know about derivatives and shares. Perhaps he’s not the best person for the job. Find the right person; pick the specialist. You’re starting small, so you need someone that can do the job, not your cousin Dave…no matter how good he may be on the slopes. Picking the right team members can be detrimental to your company growth, so choose wisely.
2) Spending before the check clears
Swag bags, salesforce implementation, bonuses, etc. You were promised $200K by a client, and the check didn’t clear, but you were so excited you started spending that money. Now you’re $150K in the hole! Don’t spend it, until you got it. Granted, the swag bags and employee gifts are awesome, but be diligent in your spending habits.
3) I can’t lose!
This. Is. Dangerous. It is vital to be humble. Confidence burns brighter in a room when it’s coupled with humility. Humility can take you a long way, and can also save you from heartache and gross pains. Where there is a grandiose ego, there is usually a lack of integrity that follows. Take your losses and fail forward, it’s all part of the ride to your success.
4) Trading money for integrity
Play To Win: Avoid 5 Common Small Business Fails To Be
Play To Win: Avoid 5 Common Small Business Fails Fail
Simply, don’t do this! Just don’t! You may get what you want in the short game, but that decision that you made comes with strings attached, and whomever is controlling the strings will make sure they play with the puppet…catch my drift.
5) Failure to workout
Physical conditioning is in direct correlation to mental conditioning. How you feel physically truly determines how you feel mentally, and as an entrepreneur, you need to feel empowered and confident throughout your journey. If you are sluggish, overweight, tired, or eating poorly, your work habits and output will reflect those habits. It is just that simple.
6) Looking in the rearview
If you continue to look at your previous failures without an objective in mind, you will be stuck looking in the rearview on your journey and it will end quickly because you will end up hitting something while moving forward. And since you weren’t paying attention, that car accident was greater than it needed to be because you weren’t wearing a seatbelt. That seatbelt was your safety net i.e. an emergency funds account that could’ve saved you from bankruptcy! Don’t dig ditches and complain about being stuck in them. Live life in the present, not in the past.
7) You can’t do it all alone
Once again, check your ego in at the door. Business is a team game! Building a business is a team game! You must be open minded and humble enough to trust others to get the job done. Be a leader, empower people to be successful. But there is no way you can do everything yourself. You’ll end up in the hospital, without COVID-19!
In conclusion, there are quite a few traps that can land you in a hole, scratching your head, wondering how you got there. But take these seven that I’ve touched upon and consider more that you might be victim to. Write them down, then write down why you could succumb to some of these traps. Keep your eyes on the prize, stay focused, watch where you walk, and keep moving!
Know any more common traps entrepreneurs should avoid? Let us know down in the comments.
This article originally published on GREY Journal.