Entrepreneurial Mistakes and How to Avoid Them
"John Osher has developed hundreds of consumer products...and came up with an informal list of "16 Mistakes Start-Ups Make"—since expanded to 17—that has been used in a Harvard Business School case study, has been cited in many publications, and has become a part of what he teaches budding entrepreneurs in his frequent university lectures..."
To home in on what lies behind the 17 mistakes, Osher explained in this Entrepreneur.com article what they are and how you can learn from them to achieve your own level of perfection.
Mistake 1: Failing to spend enough time researching the business idea to see if it's viable.
Mistake 2: Miscalculating market size, timing, ease of entry and potential market share.
Mistake 3: Underestimating financial requirements and timing Mistake 4: Overprojecting sales volume and timing.
Mistake 5: Making cost projections that are too low.
Mistake 6: Hiring too many people and spending too much on offices and facilities.
Mistake 7: Lacking a contingency plan for a shortfall in expectations.
Mistake 8: Bringing in unnecessary partners.
Mistake 9: Hiring for convenience rather than skill requirements.
Mistake 10: Neglecting to manage the entire company as a whole.
Mistake 11: Accepting that it's "not possible" too easily rather than finding a way.
Mistake 12: Focusing too much on sales volume and company size rather than profit.
Mistake 13: Seeking confirmation of your actions rather than seeking the truth
Mistake 14: Lacking simplicity in your vision
Mistake 15: Lacking clarity of your long-term aim and business purpose.
Mistake 16: Lacking focus and identity.
Mistake 17: Lacking an exit strategy.
5 Tips to Get You on the Right Track
Here are Russo's five things start-ups should do:
1. Know your goals for the venture.
2. Recruit and hire the best people.
3. Develop a forgiving strategy.
4. Be honest with yourself
5. Commit to the business.
