Paul Lemberg, bring us the â€œTen Entrepreneurial mistakesâ€, we can usually find in our business path. He makes us remember that when we are novel is hard to avoid certain mistakes, but in his own words: â€œMany of the following mistakes are hard to avoid even if we are an old hand.â€
1. Big Customer Syndrome. Following the new idea of diversifying our customer market, Lember affirms that: If more than 50 percent of your revenues come from any one customer you may be headed for a meltdown.
2. Creating products in a vacuum. After you or your team have a brilliant idea, donâ€™t spend many time implementing it. And if you don’t get a good response, go on to the next idea.
3. Equal partnerships. Can seem fine and fair at a first glance, but as your personal and professional interests diverge, it is a sure recipe for disaster.
4. Low prices. Donâ€™t think that the low price player in their market can make huge profits on the volume. Always remember that gross margins pay for things like marketing and product development and generally entrepreneurs need them.
5. Not enough capital. Very often, people project optimistic sales, follow by too-short product development timeframes, and unrealistically low expense forecasts.
6. Out of Focus. Many entrepreneurs feel the need to seize every piece of business dangled in front of them, instead of focusing on their core product, service, market, distribution channel.
7. First class and infrastructure crazy. Many startups die an untimely death from excessive overhead, by not spending money when is really necessary to achieve their objectives.
8. Perfection-itis. Disease often found in engineers who wonâ€™t release products until they are absolutely perfect.
9. No clear return on investment. Donâ€™t expect your customer can justify the purchase; come up with ways to quantify the benefits.
10. Not admitting your mistakes. The biggest of all the mistakes, when you can redress the situation and the mistake get bigger, and bigger.
And at last, the best of all advices to avoid some mistakes in the future, ask good questions ahead of time.