Solo Business Startup Mistakes
Avoid Common Pitfalls on the Road to Becoming a Solo Entrepreneur
Nov 10, 2008
Starting your own business is a heady experience. There is so much to do, and so much to learn, that it is easy to make mistakes. Most solo entrepreneurs will admit to at least one of these blunders – here is your chance to navigate around some of the most common missteps on your way to success.
Business Startup Mistake #1: Looking for Business Startup Ideas in All the Wrong Places
Deciding what kind of business to start is where you may get the most “help” from family and friends. Despite their good intentions, they are not always the best source for business startup ideas. Websites with lists of home business opportunities are also of limited usefulness; especially the ones that promise you’ll make fabulous money in just 10 minutes a day.
Your best advice comes from your gut. What are you passionate about doing? What business would be more fun than work? What would you be excited about every morning when you wake up? Don’t be daunted if you think customers will be hard to find. The beauty of the Internet is that it makes it possible for solo entrepreneurs to get in touch with potential customers anywhere in the world, inexpensively.
Business Startup Mistake #2: Becoming a Solo Entrepreneur without Sufficient Resources
If you expect your startup business to pay this month’s rent – get a job (really!) It’s unrealistic to expect significant cash flow at this stage of your business (despite what you might read on home business opportunity sites.) Plus, the pressure of meeting your financial obligations may force you into bad business decisions. Take time before you start your business to save enough money to cover your living expenses for several months.
Business Startup Mistake #3: Not Knowing Your Strengths and Weaknesses as a Solo Entrepreneur
To be a successful solo entrepreneur, you need to be a project manager, a business planner, a marketing and sales specialist, an accountant, maybe a lawyer – and a dozen other roles. You simply can’t do them all well. Now, before you start your business, is the time to get honest with yourself about the extent of your business skills.
Business Startup Mistake #4: Not Getting Help with Solo Entrepreneur Chores You Don't Do Well
Here is the corollary – get help with the roles and tasks you don’t do well, or that you’d just rather avoid. There are creative ways to get business startup assistance without spending a fortune, including barter, hiring local co-ops, and low-cost monthly services. Don’t be tempted to put it off until you make money – you’ll become profitable much more quickly if you make this upfront investment.
Business Startup Mistake #5: Starting Your Business by Accepting Work Just for the Money
This may be the hardest advice to follow when you are struggling to get your business off the ground. As the only person bringing in work, it’s very easy to rationalize taking a project or order, especially when the fee is large. The key is to make your boundaries clear right from the beginning – what kind of work you will accept, what kind of clients, etc. Learn how to say no, and stick to those boundaries.
Why is this so important? The wrong job will cost you more than any income you reap. Not in dollars, but in time hassling with a bad client, energy trying to get yourself to work on a task you just aren’t really interested in, and lost opportunities to take on other, better-suited projects. Ignore the temptation – and know that an even better prospect is just around the corner.
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