Mastering the Art of Business

In the previous article we talked about the importance of passion in starting a business, the need to be customer focused, as well as the need for “over delivering” – being exceptional. This was the conclusion of our discussion on what not to do: Starting a business for the sake of starting a business, under delivering, and being too product or technology centered. Today we look at three other mistakes that I strongly believe should be avoided when starting a business.

4. Being in Denial
Not knowing your market is definitely one of the best ways to drive your business to the ground. I also believe being obstinate and not willing to admit that you’ve made errors is as fatal. A company is a living and breathing entity that needs to evolve and adapt; so is your business plan. As such, if in the process of doing additional research you realize that your targeted market is not nearly as big as you had initially projected, or worse, there is barely a market for your product or service, don’t close your eyes to reality. Admit it. It may sound obvious, but when an entrepreneur has spent countless hours in building a business with a specific vision and direction in mind, it can be difficult to admit that you may have to throw your business plan in the trash and start over. I also believe many entrepreneurs are strongly opinionated and confident of their vision, which makes it even harder. When your initial plan is guaranteed to lead you to failure, be strong and admit you have to change your plan.

However, remember that change is part of starting a business. In fact, your initial plan is probably wrong and you will most likely end up doing something different. This leads us to Sidetracking.

5. Sidetracking
This refers to the concept of diverting from your main course. I believe there’s a fundamental but yet subtle difference between adapting your business plan and blindly changing entire course. Yes, there is probably countless times where you will doubt yourself or your business case, but it’s important not to go wild and turn your project inside out everyday. In my opinion, one of the joys of starting a business is having the opportunity to build your business from ground up. It’s the passion of being innovative, creative, and strategic. I call this the “white board” opportunity. With this opportunity comes the risk of being unfocused and putting your energy in different ideas that in the end will prevent you from breaking away from the start up phase to actually running a business. Avoid this. Think through it and make sure you understand the difference between adapting and sidetracking in your business project. Quite frankly, it might not always be obvious, but if you slow down and think about it, mistakes will be avoided.

6. Under or Over Networking
Talking about spending your energy wisely, one area we might not put enough attention in is networking. I have myself failed in this area in the past. I was strong on innovations and strategies but poor at networking. At the time of my first business it would take all of my strength and courage to go to a networking event, but once there, I would meet and greet with a fair amount of people. However, in the end these contacts would lead me nowhere. I would spend a lot of energy at networking without having a clear objective of what I wanted to achieve and because of that my networking efforts would not pay off. Remember, the objective of networking is to meet with people that have similar interests, objectives, and with who a win-win situation can be achieved. Everyone networks for the same reason – to grow their business. My advice is to make sure you spend your time wisely. Over networking, the act of trying to network with anyone and everyone, will take a lot of energy and may not be beneficial. Under networking on the other hand will deprive you of potential leads, sales, and business opportunities. Keep it balanced, inline with your objectives, and stay true to yourself.

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There are certainly many more mistakes that should be avoided but from my own experience I felt the 6 mentioned in this article are overlooked but yet critical to the success of your business. I hope this article (part 1 and 2) will help fellow entrepreneurs avoid the mistakes I have made in the past, and in so doing support you in achieving your goals.

What other common mistakes do you believe should be avoided at all cost?