3 Common Business Mistakes and How to Avoid Them

bigstockphoto_business_mommy_smallIf you know me, you know I am big on learning; learning in any form, anywhere at any time.  I did in fact get my MBA from an accredited online university while working full-time, often pulling all-nighters and writing until my hands were sore…but I did it because I’m passionate about life, achieving goals and working toward my dreams.  And I am still learning at all hours of the night and day and soaking it all in.

Some of the lessons I learn from time to time I feel are well worth sharing.  As entrepreneurs, visionaries and people who “dream big” we need to stick together and share our knowledge to help each other take our businesses where they’re meant to go.   And today, this lesson was definitely worth sharing.  Even if it just reminds you to take a step back and consider where you truly want to be in business and life.  Enjoy this lesson from someone I consider one of my teachers, Sherri Garrity at The Corporate Fugitive.

We’re already one third of the way through 2009 – are you where you want to be?

Many of us dream of quitting the corporate rat race and exchanging it for the freedom filled life of the self-employed. Or, you may be an accidental entrepreneur, plunged into the world of self-employment due to downsizing, layoff, or business closure.

This number grows every year. Most businesses in the United States and Canada are created as sole proprietorships – and it’s no surprise, for two reasons. One, because it’s relatively simple to do, and two, because we want to be independent and free in our newly staked territory.

bigstockphoto_mistakes_road_sign_3515485There are common mistakes that many new entrepreneurs make when they are leaving the corporate world.

Number one – not taking the time to get clear about what you really want out of your new business.

Would you hop on a plane, without knowing where it was headed? This is the equivalent of failing to examine your business and personal goals.

Many small business owners just don’t take the time upfront to think about what they really want. They start from where they are at the moment and put one foot in front of the other, day after day. They pick up random clients and focus on getting their work done. Most are just relieved to have clients and to make enough to replace their previous income. So where do they end up? Often somewhere they don’t like, and don’t recognize.

The best defense against building a business that you’ll want to invest yourself in, is to make sure you know what you want.

Number two – not knowing who your ideal clients are and what you are selling to them.

Using the analogy of travel again, would you be persuaded to fly first class to a five-star resort on a tropical beach, if you have a phobia of flying and your budget is modest? Not likely.

But this disconnect is something that many business owners create with their potential customers. They do not carefully and deliberately decide the structure of the business enterprise. They don’t determine the services and prices they’re offering in a strategic way. They don’t choose a target market, or figure out what that market wants. They try to sell the five-star resort to the one-star customer.

What’s even worse, they often undercharge, so to the clients they attract haphazardly, they sell at a one-star price.

What ends up happening are business owners who feel very scattered and do not stand for anything in the marketplace.

Number three – not getting help soon enough.

Going it alone sounds great to ex-corporate, solo entrepreneur types, until they realize they not only have to get the clients and do the work, but take care of technical support, marketing, production and customer service. Many new entrepreneurs do not get help soon enough. A good rule of thumb – if someone else can do it faster, better, or cheaper than you, you should not be doing it yourself.

Today the availability of contract help is virtually infinite. There are independent professionals providing administrative and technical support, accounting, marketing and everything in between.

Besides paid help, other forms of support are also important. Finding networks, taking training, and getting some form of coaching are all ways to create support teams for entrepreneurs.

Sherri Garrity is the Chief Corporate Fugitive and creator of the Five Keys Success SystemTM for ex-corporate employees and aspiring entrepreneurs who want to break free from the confines of their corporate experience and unlock their business potential for greater personal freedom and prosperity. The Corporate Fugitive system demystifies the business of setting up, managing, marketing and growing a successful entrepreneurial adventure. Visit www.corporatefugitive.com for free tips on how to unlock the business in you.

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May 7, 2009 | Filed Under InnoVAtions, Mompreneur Tips, Motivational | Leave a Comment