Before you go into any business, please take a moment and consider these 3 deadly business mistakes, and avoid them. Most new entrepreneurs see a world of opportunity (which is true), but often times they get swayed by these problems. So let’s get right into them.
1. Choosing a market based solely on the perception that you will make money.
While you do need to consider the market in terms of money spent and willingness on the part of customers to buy, if you base your decision only on the amount of money you think you will make, chances are high that you will fail. And this is not because there isn’t money to be made in that particular market niche, the problem is that your willingness to continue pouring yourself into the project will diminish quickly.
I know this to be true because I made this same niche market selection mistake myself. When I first started out in business, my only goal was to make money. But I soon found out that there were many aspects to business that I just down right hated, and even my choice of markets became a bad taste in my mouth.
All in all, I gave up and tried something else.
My advice is to choose a niche based on a combination of personal interests, and the ability to make money.
2. Choosing the wrong partner.
This is another extremely costly mistake. Let me give you a personal example. When I first started in real estate investing, I chose a partner based on the fact that he also wanted to be a real estate investor, and had capital for which to invest. Since I did not have much capital at the time, I thought it would be a good fit.
Needless to say, our goals were different, and after we signed the paper work on our first deal, he decided to do something different with the property than we agreed to do. Two years later, I had hundreds of man hours invested in the project, and I lost $8,000.
Knowing what I know now, the 2 years lost was what hurt the most. During that time, I wasn’t able to do any other investing projects, which really set my success back. So the bottom line is, make sure the partner you choose has the same goals, desires, and beliefs as you do, or don’t pick a partner.
3. Not planning for the long-haul.
This is another lesson that I failed to learn early on. I have been excited about various projects in the past, but have failed to plan them all the way through. You need to have a 1 year, 5 year and exit strategy planned out before you even get started.
Taking action is key to success, but taking unguided action can be deadly to your business.
Like I mentioned, I have had several projects that I was excited to get started on, but did not follow through on them. Don’t be like this, you just end up hurt and confused. Trust me, it isn’t worth it…
Please feel free to leave me any comments or questions you have in the comments area below.