Sometimes a new business fails because the entrepreneur doesn’t have the skills or work ethic necessary for success or because the model upon which the business was founded isn’t really viable. But in some cases, none of these factors come into play and the business struggles or fails due to mistakes which could have been avoided.
Dana Brownlee, a business consultant writing at entrepreneur.com, has noticed seven common mistakes made by new entrepreneurs. These include:
– not having enough cash reserves to support yourself until the business becomes profitable, since even a great business needs time to ramp up;
-using overly optimistic planning assumptions (like over-estimating demand) or glossing over details, risks and “what ifs”; and
-pricing your product or service incorrectly (she cites a personal example where too low a price was the problem! ).
Click here to see the remaining four “sins” as well as Mr. Brownlee’s suggestions for overcoming them.