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BLOG 46: Why MOST Entrepreneurs FAIL. 6 minutes to learn how to AVOID these traps. Not taught in Business School.
Hi, I'm Bob Parsons... here with Teresa.
Hi Bob. Hello Internet!
I've started 3 businesses from scratch. Along the way, I saw and learned a lot.
Here are the Top 10 traps I've seen entrepreneurs fall into - and how you can
Trap #1: Quitting your day job too soon!
"Going all in" on a new, unproven business might be a romantic notion. But I
gotta tell you, putting everything on the line is overrated - at least at the
You're far better off sticking with your day job as long as you can - at least until
cash from your new venture covers your living expenses.
Trap #2: Starting too big!
It's always a big mistake to invest hundreds-of-thousands or millions of dollars to
get a new business idea off the ground.
In fact, I recommend that you do just the opposite. Start small. Small is
Small can change course quickly and easily. Small can be measured and
improved rapidly, then grown. Small means you can learn from your mistakes
without them costing you your business.
Trap #3: Thinking it's all about you!
Cold hard fact is, it's not and never will be all about you -- at least not if you want
to be successful.
From the first day to the last day you gotta realize your business exists for one
purpose and one purpose only, and that's not to please you, it's to please your
Trap #4: Not advertising!
It's no secret, money is tight for new businesses. But if you're not advertising or
marketing your services, you might as well close your doors now.
You'll never grow if people don't know who you are. This doesn't mean you have
to spend a bundle, but you do have to let prospective customers know you exist.
Trap #5: Thinking you'll get rich quick!
If you think you're new business is going to make you extremely wealthy,
extremely quickly - prepare for heartbreak.
If you're in it only for the money, you're in it for the wrong reasons. People who
start businesses just to make money, well they go nowhere fast. (splash)
In sharp contrast, people who are in business first and foremost to do a good job
and please customers, they become the big success stories. (woman yells!)
Getting rich quick in business is like winning the lottery. You have a better
chance of getting struck by lightning.
Trap #6: Not paying attention to the competition!
Competition keeps you sharp. It lets you know the product, service and pricing
levels you need to beat in order to win. Never follow or copy your competitors.
Always strive to be better than them.
Trap #7: Trying to be a super hero!
For your business to really grow, eventually you're going to need to hire help. I
don't know of any examples of successful businesses that were built and run by
only one person.
The big, important fact to realize here is that the most successful business
people are great delegators.
Trap #8: Not keeping track of the important stuff!
To survive in business, you need to know how you stand at every moment. And
I'm not just talking about financial statements.
I'm talking about sales, how complaints are being handled, inventory levels, how
your ads are working...all of that.
My basic rule here is this: If something is important, measure it and watch it. If
you do, it will improve. If you don't it will deteriorate.
Trap #9: Wasting time trying to be perfect!
Face it, there is no such thing as a perfect business decision or the perfect
business deal. Before you build your business you have to realize there will be
So learn quickly from each and every mistake and apply those lessons. You'll be
a wiser person! Then, keep moving forward.
Trap #10: Having a shoddy Internet presence.
Can you believe it? Forty percent of small businesses don't even have a website.
Not having a web presence is like having your business in an unmarked building
with no phone service or power.
Having a shoddy Internet presence is just as bad. It's like having your business
in a bad neighborhood. Nobody wants to go there. To succeed these days your
web strategy has to be near the top of your priority list.
Bare minimums are: A domain name that mirrors or complements your business
name, email using that domain name, and a website that showcases your
products and services and gives customers a means to contact you.
If you need help with any of these things, just call or visit GoDaddy.com.
Well, that's a wrap for this episode. If you have any comments or questions,
please post them here.
I'm always interested in what you have to say. For Teresa and myself... thanks
See ya' next time!
During my life I've assembled a collection of 16 rules. Most of them I learned the
hard way. These rules help me in business and my personal life. I gotta believe
they'll help you too!
Today's rule, #10: Anything that is not managed will deteriorate.
If you want to uncover problems you don't know about, take a few moments and
look closely at the areas you haven't examined for a while. I guarantee you,
problems will be there.