10 mistakes new entrepreneurs

For the past 14 years, I do not work for hire, and during that time made a lot of stupid mistakes in the conduct of business. Many went behind me and started my own business, and I noticed - many of them make the same mistakes that I did.

Therefore, these tips are primarily addressed to small business owners, especially those who have just started (or is about to start) their own business. So.

1. Selling to the wrong people

Despite the fact that sales are very important for the survival of any business, do not offer your product to the first comer, including your friends and family members. I would say more, it's a waste of time - to try to sell any person who simply does not want what you are offering.

Selling to the wrong people includes trying to sell to everyone. Besides a lot easier to sell to customers than others. For example, my wife is consulting on using web-based tools for entrepreneurs, and she knew from experience that with some clients to work much harder than others.

If a potential client has no money or is terribly worried because every penny, or if the client wants a site, but does not know why he he needs, or if the client does not know what is the Internet - you with him on path. So, with a light heart refuse to customers that will bring more problems than money.

It is better to let your competitors try to sell them! You save your nerves and release time to find really good customers. And if suddenly someone wants to become your business partner, you do not necessarily accept his offer.

In the first year of their business, I answered "yes" to at least 50% of the people who offered me a business partnership. I spent a lot of time chasing projects that actually do not deserve attention. I received invitations to lunches from random people who just wanted to "see if we can start some little business together." Alas, none of them brought me 10 cents.

If you think that the upcoming meeting is pointless, then, most likely, it will be so. Not to cooperate with random people just because you think you have to expect cooperation. Today, I accept, at best, only one out of ten of these proposals. And if the offer is not immediately grabs me, then, as a rule, I reject it or ignore it.

After all, most of the ideas of this kind is not worth it to them to pay attention. Learn to say "no" weak proposals and you will be able to say "yes" to those you get rich.

2. Spending too much money

Unless you have a steady source of income, do not waste your precious start-up capital, until it becomes absolutely necessary. I started my business of creating computer games with $ 20,000 (and it was my own money), they flowed quickly, and soon I was forced to get into debt to fund its business.

Unfortunately, the first version of the business model of my project did not work, and it took five years before the business has brought the first money. So I very quickly learned that every dollar invested in business should eventually be recouped through sales.

In 2004 I started a project dedicated to self-development, with $ 9, although he could spend on it a lot more. No logo fashion or luxury web-design or business cards or stationery. I paid for a domain registration and all. This was the amount that I was willing to pay, before the project will be profitable. All other project costs have already been paid out of this income.

Your business needs to fill your wallet with money, so before you vbuhali it means, make sure you know how to pull them back. Getting a number of business projects, no doubt, requires a lot of money, but in the Internet age, you can easily run a profitable business on the detail that was overlooked in your pocket.

3. Spending too little money

Excessive greed - it is also a mistake. Do not let frugality reduce the effectiveness of your business. With the help of qualified contractors, if they can do some things better than you. Buy high-quality equipment, but only if it will justify your investment.

Do not waste money on fancy furniture, buy functional furniture that will help you be more productive. Do not buy a prehistoric computer with outdated software, which will have to slow down, especially if you can afford something better.

Wisdom, which will allow you to determine you are stingy or too wasteful, will come to you in time, and if you are just starting out - listen to the opinion of another person. Often, even the idea that it is necessary to know the opinion of another person, will allow you to make the right choice. And if you can not justify the costs of the importance of the person whom you respect, it is likely that the purchase would be a mistake. On the other hand, there are situations in which it is difficult to justify the unwillingness to spend money.

4. someone else pulls the mask

Many business projects managed by one person, position themselves as "we." So do many aspiring entrepreneurs, although this is not necessary. In our time, there is nothing wrong with your business - the business of one person.

My business computer games - "we" over the years, but my project on self-development - the "I". Journal of my wife VegFamily - "we", as people are working on it, but her web-counseling - "I". This is normal - call your business, "I" when you are the only person who works there.

To say that your business - it is the "we" when in fact it is the "I", a bit silly. It will not bring you the respect that you would like. Positioning your business as an "I" - even today, is an advantage, because people know that you - the only link in the chain, and if you give a promise, only you are responsible for its implementation. The promises of "we" are often worth much.

And if you're an aspiring entrepreneur, you do not try to look different. Assign a fair price your products and services according to your level of skill and talent. Some aspiring entrepreneurs think they have to be actors. In such a case, and a business project which they are promoting in the world - a conglomeration of fantasy.

Your attempts to deceive the customer will cause only negative emotions among potential buyers. And if you are so desperately grasping for your business, they are forced to lie to you, you should not start it. If you can not assess the real value of the product and its fair price, do not play a game called business. And better still a little practice your skills.

5. Considers that the signed contract will be executed

I made such mistakes are much more than he could afford. I signed contracts with reputable corporations at first glance, but the paper does not cost a penny, if the CEO suddenly wanted out of the deal (even if the reasons for the refusal were not very respectful).

Of course, the truth was on my side, but if I wanted to go to court to prove it? No, I prefer to do more meaningful work. Signed contract - it's just a piece of paper. During the contract are always relationships. And if relations deteriorate, the contract will not save you. The purpose of the contract - to clearly define the rights and obligations of the parties. But the relationship, not the paper will eventually reinforce this commitment.

And when I realized that, I concentrated on the relationship and began to worry less about what is written on paper, but my deal began to pass more smoothly. And once you're stuck in the papers - your deal is in danger. Creative transaction is often very far from a contract that describes them.

One of my lawyers, who worked with a bunch of transactions in the field of game development, told me that no deal, with which he ever worked, did not correspond to the contract exactly as many general were far from it. But in most cases, it was a big deal. Business communications are similar to the rest of the connection between people - and are subject to exactly the same constant change.

The signed contract, of course, necessary, especially if the transaction is concluded with a large corporation, where people come and go, but the same relationship - primary. Do not make the mistake of believing the contract deal. Contract - a mere shadow of the transaction. The real deal - it's attitude. Keep your business relationship, and you do not have to worry about what is written on paper. It is not sad, but it's a fact - in the business world a lot of scams.

And many of them hold positions with impressive titles: CEO, President, CFO. Of course, there are people who think only of money, they lie, cheat, steal, that is doing everything possible to get them. Of course, in recent years, many scammers have already fallen under investigation or behind bars. But still there are many people for whom the word honesty means nothing.

For example, in the development of computer games are often the major publishers show a flashy interest in certain games, and lead developer of the nose. They are trying to create the illusion of a developer that the transaction is pending, but it gets the developer - a plucked deadlines and broken promises.

In fact, publishers want as long as possible to tighten the release of the game on the market, to keep from the competition with their product. They hope that the developer will miss the Christmas season or has run out of money, and the release of the game will be canceled. That happens. Business, particularly Entertainment - not for the timid people.

6. Do not listen to your intuition

Intuition is just as important in business as anywhere else. You will be very surprised if you find out what the number of transactions of giant corporations is given a green or red light depending on the sensations CEO. You might think that the language of business - is the logic. But the reality is - different.

If you base your trades on hard logic and ignore intuition, it is likely you will be in trouble. Let's start with the fact that we, the people - not very logical creatures. We just do not always have sufficient information to make a logical decision because the transaction depends on the people, and the logic of a system that would accurately predict human behavior, there is still no.

The inability to predict the behavior of others - a serious gap in our logic. And intuition has to fill that gap. The behavior of people - that determines whether or not the transaction is concluded. And the assumption that everyone will behave as you'd expect - it is far from reality. No deal does not go perfectly.