Business Opportunities Weblog

July 8, 2008 by Rich Whittle | 2 Comments

PRNewswire:

Sidestepping the startup pitfalls so common in business is crucial to an entrepreneur’s success. Savvy entrepreneurs avoid these startup pitfalls by capitalizing on the experience of others, including tapping business mentors to help blaze their way.

Here are some specific startup pitfalls that business mentors can help entrepreneurs avoid:

Tackling a business you don’t understand. You might be a quick learner, but you’ll still spend time climbing a learning curve if you enter into an entirely new field. As a general rule, go with what you know — and if you don’t know it, utilize the resources of someone who does.

Funding faux pas. Don’t waste time and money securing the wrong funding from the wrong people; it pays to build investor relationships correctly from the beginning. Business mentors can help you to source potential angel and venture groups that have an interest in your particular niche.

Not selling from the start. Startups often focus all their efforts on getting everything just right, from funding arrangements to design details. Don’t forget to make sales your priority — bringing in critical cash flow and customers early on. Tap your business mentor’s network to build a customer target list and get you that first meeting.

Missing the big picture. Entrepreneurs often zero in on one area of their new enterprise — usually the area where they’re strongest. But all aspects of your business should grow in unison; from finance and marketing, to operations and staffing.

Starting from scratch. Seasoned business mentors will tell you that buying an undervalued operation and building it up will ultimately save you valuable time, money and energy.

Skimping on salaries. Great businesses are built by standout people, so take the time and spend the money necessary to build a solid management team and employee talent pool.

Photo by nookiez.

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Tags: Advice, Entrepreneurial Lifestyle, Strategy