- Keeping your rent low as possible.
- Hiring someone you know and trust.
- Buying used equipment to keep cost down.
- Keeping your prices reasonable.
- Saving money on professional advice.
- Considering borrowed money as a last resort.
- Picking a bank that knows you and that you have a relationship with.
- Thinking you have your advertising worked out.
- Falling blinding in love with your product or service.
Mistakes of New Entrepreneurs
The Business Plan
Planning is one of the most important aspects in running a business whether it be a small family owned business or large corporation. Writing a business plan should be your first step in starting a new business venture. By having a plan you have a detailed blueprint of you business purpose and a detailed account of what actions will transpire to achieve your organizational goals. Below are some of the basic element of a business plan which begins with the executive summary. The Executive summary is probably one of the most important elements of a business plan. The executive summary is a brief overview of what your business purpose and how you will pursue the market opportunities and why your business will be a success. This portion alone can gain or lose potential investor interest in your business.
Innovation
You Can Learn To Be The Next Steve Jobs: Nine Ways To Become A VisionaryThis innovation article was found online it talks of how you can create a process to become an innovative individual. Being an innovative person is not a trait you have to be born with it can be learned. To be innovative you definitely have to look outside the box. Those who are innovative tend to live lives that are non routine. Innovators look at things differently always looking towards the future and whats next not so focused on the past, they create their own paths. These type of leaders surround themselves with a mixture of different individuals so they can see other views and nurture their creative minds. If you surround yourself with the same type of people with the same daily routines how will you be able tho grow as an individual. You must not be afraid to venture out into new social activities.
Tips on Being Innovative
- Research your market and potential customers.
- Study the current market trends.
- Look at what your competition is doing.
- Consider Investing in research and development.
- Review existing business and evaluate areas that can be improved.
- Brainstorm your ideas.
- Create a plan of actions.
- Never give up.
Is an MBA still relevevant
In the October 2012 Issue of Entrepreneur Magazine I ran across an article MBA Smackdown, which is a discussion of whether earning the degree is still relevant as it once was. As an MBA student I can agree with reasons being for and even against an MBA degree.
I myself have taken course and felt like I learned absolutely nothing or the information being taught was not up to date or simply lacked being a graduate level learning experience. Some individuals seem to be misguided into thinking that an MBA will make them management material and immediately increase their earning potential this is so not true. Some people enter a MBA program that probably would benefit more from taking professional development courses or specialized topics in business.
If you have little to no experience in business and are seeking a career in entrepreneurship then you can definitely benefit from earning an MBA. In my opinion many small business tend to fail because they lack the knowledge needed before venturing out in the business world. Learning by experience can be costly.
Questions to consider when contemplating an MBA degree
Can you afford the MBA
Will you work part time or full time while earning MBA
Will an MBA help progress my career
I myself have taken course and felt like I learned absolutely nothing or the information being taught was not up to date or simply lacked being a graduate level learning experience. Some individuals seem to be misguided into thinking that an MBA will make them management material and immediately increase their earning potential this is so not true. Some people enter a MBA program that probably would benefit more from taking professional development courses or specialized topics in business.
If you have little to no experience in business and are seeking a career in entrepreneurship then you can definitely benefit from earning an MBA. In my opinion many small business tend to fail because they lack the knowledge needed before venturing out in the business world. Learning by experience can be costly.
Questions to consider when contemplating an MBA degree
Can you afford the MBA
Will you work part time or full time while earning MBA
Will an MBA help progress my career
Social Entrepreneurship
Social entrepreneurs are people that recognize social problems and use entrepreneurship as a means to solve those problems. The main goals of these type of business is not to turn a profit but to focus their goals on creating societal improvements. Personally the first thing that comes to mind is companies that promote energy efficiency. Most individuals waste lots of energy on a daily basis. We all use energy for heating, cooking, and transportation. Our day to day activities depend on it. The majority of energy created derives from natural resources that are irreplaceable. These natural resources are being used in large quantities which can severely effect our sustainability. Many companies are becoming more energy efficient as a means to cut cost and do something good for the environment.
21 Golden Rules of Entrepreneurship
Jason Nazar, the co founder and CEO of Docstoc.com has a very informative video for entrepreneurs on YouTube called 21 Golden Rules of Entrepreneurship some of my favorites rules from the video are
-I'll see it when I believe it
As an entrepreneur you first need to believe in yourself and that can accomplish what you set out for otherwise how will you be able to sell your ideas to anyone else. You can make your entrepreneurial dreams reality if you truely believe in them.
-Sell yourself
As a marketing major and hairstylist this is so very important. People are investing in you the individual. So consider yourself a brand, make yourself preferred over the competition.
-What's you why
So many people i run into simply just want to be their own boss when the truth is they simply do not want to work. You have to have some sort of passion or motivation for what you are doing.
-Ideas don't matter execution does
People come up with great ideas every day. Many fail to make those ideas a reality and some that attempt their ideas with no clear plan to go about accomplishing those ideas
-I'll see it when I believe it
As an entrepreneur you first need to believe in yourself and that can accomplish what you set out for otherwise how will you be able to sell your ideas to anyone else. You can make your entrepreneurial dreams reality if you truely believe in them.
-Sell yourself
As a marketing major and hairstylist this is so very important. People are investing in you the individual. So consider yourself a brand, make yourself preferred over the competition.
-What's you why
So many people i run into simply just want to be their own boss when the truth is they simply do not want to work. You have to have some sort of passion or motivation for what you are doing.
-Ideas don't matter execution does
People come up with great ideas every day. Many fail to make those ideas a reality and some that attempt their ideas with no clear plan to go about accomplishing those ideas
Intrapreneuship
How many individuals posses an entrepreneurial spirit but do not necessarily desire owning their own business. Perhaps being an intrapreneur is the way for you to go. Intrapreneurship is a means to encourage employees assertive risk takers in developing their own ideas, innovations, and techniques into solid plans of action that create a profitable finished product.
Sir Richard Branson, Chairman and CEO of Virgin Group is a self-made multi-billionaire who believes that intrapreneuship plays an important role in building successful business. Sir Richard commented on the importance of Intrapreneurship in helping him build his brand at Virgin : “Virgin could never have grown into the group of more than 200 companies it is now, were it not for a steady stream of intrapreneurs who looked for and developed opportunities, often leading efforts that went against the grain.”
An Intrapreneur is simply an internal entrepreneur. These individuals do not need to be assigned the role within an organization they empower themselves and create the expanded role for themselves. Intrapreneships can be found within any organization be it large or small. Intrapreneurship does not mean you must come up with new products you can merely talks old concepts or products and develop new markets, increased efficiency or any aspect that will create growth for the company as well as the individual.
Are You An Entrepreneur?
As an entrepreneur or aspiring entrepreneur how would differentiate an individual who is an entrepreneur versus a business owner, or are they one in the same. There are clear differences between the two. Most business owner are content with having a stable income and being in control of their own time. Entrepreneurs however are forward thinkers who are willing to take risks, have specific goals they would like to achieve that will ultimately help grow their financial wealth.
Below is a chart that helps you identify some of the differences between being a business owner and and entrepreneur.
Objectives & Views
| Small Business Owner | Entrepreneur |
| 1. Primary Motivation | To Make a Living | To Make a Change and Impact |
| 2. Personal Financial Goal | Regular Income | Exit Value of Company |
| 3. Career Objective | Self-Employment | Financial Freedom |
| 4. Financing Strategy | SBA or Bank Loans | Investors |
| 5. Business Strategy | Creating More Sales | Providing Value |
| 6. View of Assets | Real Estate and Inventory | Employees & Customers |
| 7. Risk Taking Profile | Stability | Willing To Fail |
| 8. Employee Compensation | Market Rate or Below | Will Pay for Top Talent |
| 9. Work Environment | Extension of Owner’s Home | Fast Paced and Growth Focused |
| 10. Investment Profile | Main Investor/Owner of Company | Investor/Involvement in Different Businesses |
| 11. Daily Actions | Day to Day Manager | Strategy, Growth and Collaboration |
| 12. Work Style | Long-Term and Enjoys Repetitive Tasks | Short-Term and a Serial Innovator/Inventor |
Luanne Teoh 6-3-2011 http://www.biztechday.com/difference-between-an-entrepreneur-and-a-small-business-owner/
Those business owners that desire being and entrepreneur it can be achieved you just have develop a plan and execute it. There are so many individual that come up with great ideas daily but fail to turn those ideas into a business success.
A child from Marysville, Ohio took one of his ideas an ran with it.
Pictured below is Hart Main who started selling scented candles for men at the age of 13. Main's idea to start his business came to him when his sister was participating in a fundraiser that was selling candles that catered to girls. Main made a suggestion that "men scented" candles would be pretty neat idea. His business started with $100 dollars he earned from a paper route $200 investment from his parents.
Hart Main, founder of ManCans
Photos © natalie brasington
http://www.entrepreneur.com/article/220259#
http://www.cnbc.com/id/42497934/Inventions_By_Kids?slide=1
If reading about Hart Main's simple idea that he turned into a profitable business does inspire you to be more proactive in creating your own success read about other young business minds who saw needs that their creative businessminds could help solve.