Youth CEO Clubs
"When the Student is Ready, The Teacher Will Appear!"
For Ages 7 - 18
Copyright 2008 Angels Press. All Rights Reserved
Youth CEO Clubs
Cathy Harris, CEO
P.O. Box 870849
Stone Mountain, GA 30087
Phone: (770) 873-2072
Website: http://www.YouthCEOClubs.com
TOP 12 BUSINESS MISTAKES
1. Lack of Research:
The biggest mistakes made by people who think they are ready to go into business are they often leap into business ventures before they investigate the business. Then they eventually end up experiencing a rude awakening once they realize what they’ve gotten themselves into. So you should reevaluate before you jump in with both feet. Over-enthusiasm and under-education about a new business spells disaster. Remember that most new business owners run their businesses by trial and error, but it doesn’t make sense not to do research. If you have little or no experience in the industry you’re interested in, get some. You can learn about a business by: 1) working with the reference librarian, 2) conducting research on the internet, etc.) 3) reading as many books as possible on the topic, and 4) working with a mentor and other experts.
2. Poor Management:
Every business needs a computer with a good accounting software program to help them keep track of the numbers. Many people use "Quicken" www.quicken.com. You will need to develop a monthly routine to review your financial statements - to see what's going out and what's coming in. If you are going to have trouble keeping your own books - you can take a course in accounting, or hire a Certified Public Accountant (CPA) as part of your support team.
3. Not Having Enough Funds:
Without enough capital to finance your business and your personal expenses in the lean early months of starting your business, you’ll fail. New business owners often underestimate the time it will take to acquire enough clients to turn a profit. A good rule of thumb is to have enough capital to cover business and personal expenses for at least six to 12 months. Of course, the more financial backing you have, the better. Many business owners who have funds just don’t spend them wisely.
4. Skipping the Business Plan:
A business plan is like a roadmap. You should never skip putting together a business plan. If you skip it eventually you will get lost. Many entrepreneurs, anxious to launch their businesses, fail to make a detailed business plan outlining expenses, marketing information, which will also show the weaknesses and the strengths of their business.
5. Lack of Marketing:
Marketing is what will drive your clients to you. Without clients also called customers and patrons, your business will not succeed. New business owners should spend up to 50 to 75% of their time marketing. Too many new business owners believe “if you build it, they will come.”
6. Going Into Business with Friends/Relatives:
Be careful going into business with friends and relatives! Your emotions will play a major part in how you run the business. Any decisions should be looked at carefully. You make these decisions without evaluating how your personalities will work together. It’s very important to put everything down on paper, especially when it comes to financial agreements such as the return rate of an investment.
7. Hiring Incompetent Workers:
When you get ready to hire full or part-time employees, be careful that those employees don’t end up costing you more time and money. Make sure they don’t steal from you by letting them know from the very beginning that you are watching them.
8. Ignoring Competitors:
When competitors come on the scene rather than compete with them by cutting prices, strengthen your hold on clients by offering better services and higher-quality products. It’s also a good idea to develop cooperative buying endeavors and referral networks when one of the businesses is unable to meet a customer’s needs.
9. Failure to Get Legitimate:
Don’t wait to get legitimate (open a Sole Proprietorship, LLC, Incorporate, etc.). Get legitimate in the early stages of your business. If you are having trouble putting together your paperwork, hire an attorney to do the paperwork or to go over the regulations with you. Remember you need to have an attorney, accountant, insurance agent and others as part of your success team.
10. Failure to Brainstorm:
Entrepreneurs are risk takers but many don’t want to admit that they don’t know everything. They don't want to be criticized so they don't brainstorm. Every business needs a support system. So seek out criticisms of your ideas. You need to find experts such as financial, legal and marketing advisors so you can tap into their knowledge and experience.
11. Failure to Put Up a Website:
In this day and age of technology, many business leagues and networks fail to take their businesses online. Many people look at your literature especially your business cards to find a website address so they can further investigate your services and products. Choosing not to put your business online can hurt your business. Using a blog or myspace account is not the same as having a "professional website."
12. Bad Customer Service Skills:
Remember it's easier to keep a customer than it is to get a new one. You can run a business without employees but you can't run a business without customers. Bad customer service skills can be the deciding factor of whether your clients or customers will use your services or buy your products ever again.
