Via Dane Carlson at the Business Opportunities Weblog, a very useful piece, from Entrepreneur, on real risk facing the entrepreneur. John Osher, a successful serial entrepreneur, has over the years compiled a list of the critical mistakes that entrepreneurs make. A precis:
"After I sold my business to Hasbro, I decided I’d make a list of everything I’d done wrong and [had] seen other entrepreneurs do wrong," explains the 57-year-old Jupiter, Florida, serial entrepreneur. "I wanted to make a company that didn’t make any of these mistakes. I wanted to see if I could come up with the perfect company."
He came up with an informal list of "16 Mistakes Start-Ups Make"—since expanded to 17—that has been used in a Harvard Business School case study, has been cited in many publications, and has become a part of what he teaches budding entrepreneurs in his frequent university lectures:
- Failing to spend enough time researching the business idea to see if it’s viable.
- Miscalculating market size, timing, ease of entry and potential market share.
- Underestimating financial requirements and timing.
- Overprojecting sales volume and timing.
- Making cost projections that are too low.
- Hiring too many people and spending too much on offices and facilities.
- Lacking a contingency plan for a shortfall in expectations.
- Bringing in unnecessary partners.
- Hiring for convenience rather than skill requirements.
- Neglecting to manage the entire company as a whole.
- Accepting that it’s "not possible" too easily rather than finding a way.
- Focusing too much on sales volume and company size rather than profit.
- Seeking confirmation of your actions rather than seeking the truth.
- Lacking simplicity in your vision.
- Lacking clarity of your long-term aim and business purpose.
- Lacking focus and identity.
- Lacking an exit strategy."
Dane’s blog consistently has useful info for the small business, and really is worth adding to your reading list.