Top 10 Biggest Entrepreneurial Mistakes By Mike Michalowicz

13/03/2010

I’m a big fan of Toilet Paper Entrepreneur, most recently I was busy to search a books of Mike. Finally I got a PDF inside my ebook store. I start to downloading and that touched me and greatly 10,7, 6 and 1. I figure out that, I’m ruining my life and messed-up my life for business which is totally uncertain — though I know no risk no gain but that doesn’t make sense to spend the full time for business. I’m doing BBA and side by side doing web business. To managing  or merging or concentrating in both terms at the same times such as need to take serious decision about business and at the same time exam is knocking that is really tough to handle — I wish I’ll handle it smoothly from today. Oh, I forgot to mention, Mike released his first books, The Toilet Paper Entrepreneur[i], I wish it will read this book soon.

10. Trying To Get Rich Quick
Most overnight successes take 15 to 20 years to achieve. If you go in expecting to be rich overnight, you may become discouraged early on and give up your dream prematurely. Know that success takes time, takes perseverance and takes a little bit of luck. Give your business the time to grow. Only if your company is stagnant for a long time, should you take it as an indication to try something new.

9. Assuming No Competition
Even if you have the latest, greatest, never-been-done-before approach to something, don’t assume you have no competition. Competition is more than just the direct, obvious competitors. Competition is also all the available alternatives. What else could the consumer do instead of using your product or service? Could they do nothing?!? The customer almost always has the option of walking away; and that is a serious competitive threat.

8. Being a Weak Leader
The success of your company is contingent on you being a strong, effective leader. This does not mean you need to be an authoritarian, and this does not mean you are everyone’s buddy, either. A great leader sets the course for the company, communicates it constantly and inspires the team to get there.

7. Being All Business All the Time
Many entrepreneurs put their personal lives on hold to focus exclusively on their business. Ultimately both suffer. No question your business needs your full attention and effort, but only in short spurts. Just like a peak athlete, in addition to cranking up for game time, you need to have a proper healthy diet, get enough rest, and take breaks. Balance your personal and business life and you will actually do better in both.

6. Pie-In-The-Sky Financial Goals
If all business plans came true, being a billionaire would be nothing extraordinary. Many entrepreneurs go into a new venture planning astronomical returns. Yet, most never even get the business off the ground. Unrealistic goals not only hurt your credibility, but can also be an emotional drain. Set Specific, Measurable, Accountability, Realistic, and Time specific (SMART) goals to ensure continual progress; chances of being an overnight success (albeit in 15 to 20 years) are much greater!

5. No Rallying Point
There is a reason why employees leave high paying corporate jobs to go to start ups, and it sure ain’t for the money. People are driven to serve an important purpose, in addition to bringing home enough bacon to feed the family. Many businesses never define their real purpose for existence and continually attract a mix of employees who are seeking success in different ways. Clarify the purpose of your company, beyond just making money, and you set the stage for attracting like minded employees. A team focused on the same goal is a very powerful force. The Toilet Paper Entrepreneur, “I Have a Booger Hanging Out and No One Is Saying Squat”

4. Cutting Price
Often, the first thing entrepreneurs resort to when business is tough is to try differentiating on price. Cheaper prices mean more customers, right? Wrong! Most customers are willing to buy more expensive items because of the greater quality or the better convenience. During tough times, often an increase in price, coupled with improvements in quality or convenience can bring the customers in droves. Price slashing is a dangerous game. At some point you have to slash yourself to keep costs down.

3. No Clear Marketing Message
You never know where, when or how a new prospect is going to hear of your business. If you have a mix of messages out there, the prospects will have an unclear expectation of what you offer. Your company must be presenting a consistent clear message on all fronts. You will never get a second chance to make a first impression. Make sure every opportunity a new prospect will get to see your business for the first time, sends the same consistent message.

2. Not Being Forthright
The days of cover ups, died out with Bill Clinton’s denial of sexual relations with Monica. The anonymous nature and grand size of the Internet allows someone in the know to share anything with anyone at anytime. If your business tries to cover up a mistake, it is just a matter of time before the word leaks and you are labeled as a liar. That’s not good for business. Be the one to break your own bad news, you just may be perceived as honest and trustworthy.

1. Trying To Do It All
The greatest mistake entrepreneurs make is to believe they can do it all by themselves. While an entrepreneur can do most things, they do most things poorly. Just like any other person, an entrepreneur has one or two God given talents. As an entrepreneur it is your job to identify what you are great and do those few things to your fullest. Surround yourself with people who are strong where you are not. Great companies are built on the foundation of exploiting a few strengths, not on trying to be masters of everything.

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60 Resources For First Time Entrepreneurs – The Entrepreneur’s Handbook

30/12/2009

In previous time, I’ve shared tons of resource for entrepreneurs and you know when you’re in business you need to grow venture capital for your organizations or  business firm, have to understand and know about legal issues and accounts management, web design and internet marketing, advertising and lots of issues.  However, one of my favorite writer Neil shared something cool resource for the web users. I wish you really enjoy it.

Neil Patel is the co-founder of 2 Internet companies: Crazy Egg, and KISSmetrics. Through these 2 companies he has helped large corporations such as AOL, General Motors, Hewlett-Packard and Viacom make more money from the web. By the age of 21 not only was Neil named a top 100 blogger by Technorati, but he was also one of the top influencers on the web according to the Wall Street Journal

As a first time entrepreneur you probably have tons of questions. And every time you do a Google search for an answer you are bombarded with too much information and in some cases that information contradicts other things you have heard. Due to this, I have created a list of 54 resources that should help you out.

Legal & Accounting

Legal and accounting issues may not seem important when you are starting your company, but they are. Legal and accounting mistakes that you make early on can haunt you for years and can be expensive to fix. So if you are going to start a company you should do things right from the get go.

  • S Corp. vs. LLC: Which Structure is Right for Your Business – Determining the type of legal structure for a new business can be daunting for entrepreneurs and small business owners. Learn more about S Corporations and Limited Liability Companies (LLC), and decide if one of these business structures is right for you.
  • Legal Zoom – a cheap way to get incorporated.
  • Findlaw – a directory of all the lawyers throughout the US.
  • Bookkeeping 101: Debits and Credits – Accounting ends with score keeping but begins with record keeping. The first task of accounting is to accurately record transactions. Transactions are events that change the composition of a firm’s assets, liabilities, and equity.
  • Accounting Basics – This explanation of accounting basics will introduce you to some basic accounting principles, accounting concepts, and accounting terminology.
  • Docstoc – A free place to get legal documents and templates which can drastically help reduce your legal fees and in some cases allow you to do some legal stuff yourself.
  • You’ve Been Sued: What Do You Do? – Everything you wanted to know about being sued.
  • Opening a Business Bank Account – Business bank accounts and your identity.
  • Closing Down Your Business Permanently – If you’re shuttering your business for good, there’s more to it than drawing the blinds.
  • Legal Issues to Consider When Starting Your Business – There are a multitude of legal issues to think about when it comes to starting your business. Everything from your business name to its structure to its operation has legal implications.

Web Design

Design is something we tend to take for granted. Not only is important for your website to look good, but you also want to make sure it is usable and converts.

Internet Marketing

You can have a great product or service, but if no one sees it you will never make any money. Now this doesn’t mean you have to hire a marketing firm to help you out, but you could learn some basic things about Internet marketing.

Hiring Employees

When you don’t have much cash in the bank, you can’t afford to make hiring mistakes. Sooner or later you are going to have to hire a few employees, so you better know what to look for.

Raising Venture Capital

Raising money can be a pain in the ass, especially if you have never done it before. If you want to raise money, you need to know the basic terminology that venture capitalists use, how to create a pitching deck, and how to get in front of venture capitalists.

  • Vfinance – A directory of venture capitalists, angel investors, and business plan templates.
  • Forbes Midas List – A list of the top 100 venture capitalists for the year 2009.
  • The 10/20/30 Rule of PowerPoint – Before you make a powerpoint that showcases your company and how much money you are raising, you should read this.
  • How to Raise Venture Capital – An detailed overview on how you can raise money.
  • Venture Hacks – A blog for entrepreneurs that discusses everything about venture capital.
  • The Funded – An online community of entrepreneurs to research, rate, and review funding sources worldwide.
  • How To Raise Venture Dollars – Ben Elowitz who has raised over 40 million dollars breaks down the tricks to raising money.
  • Paul Graham – Awesome essays about venture capital and entrepreneurship.

General Business Advice

Other entrepreneurs have already solved many of the problems you are going to face. So when you run to into these generic problems, here are some websites you can turn to.

Living The Frugal Life

Although it may sound sexy to be an entrepreneur, most entrepreneurs don’t make a ton of money. You are going to have to learn to live a frugal life so that you can continue to do what you love and not worry about paying your mortgage.

Conclusion

There are a ton of resources out there for first time entrepreneurs, but these are the main ones I use. Do you have any other recommendations?

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100 Must-Read Articles For Entrepreneurs

5/12/2009

entrepreneur

Internet a great place where people can learn more then any other environment, through brain works extremely inside class room. I’ve been looking for great blog articles for entrepreneurs, where an entrepreneur can learn tons of things. Entrepreneur should keep learning news things and start to implementing in different situations. Have to learn, how become successful entrepreneur or 10 Reasons You Are Not A Successful Entrepreneur and how to make business plan, about startups organizing, managing the business, team management, surviving with business, leveraging costs, increasing revenue, leading, raising money, fining angel investors, learning from mistakes and understand common mistakes and analyzing business growth so on things you will learn.

Starting Up

Read these posts when you’re starting to get serious about opening up your own company.

  1. A Boost for Young Entrepreneurs: This post should encourage young entrepreneurs who are wondering if they’re experienced enough to start out.
  2. 9 Conflicting Tips for Start-ups: This post plays devil’s advocate to common suggestions for entrepreneurs.
  3. Entrepreneur vs. Business Owner: Believe it or not, these two positions are completely different.
  4. The Secret to a Good Business Name: If you need help coming up with an effective company name, read this post.
  5. Prepare for the Worst-Case Scenario: This post highlights the business survival guide which can help you prepare for worst-case scenarios.
  6. Tactical Tips from the Trenches: Get tips for picking a name, building a website and monitoring competitors.
  7. 10 Tips for Startups to Survive the Recession: Simplify, stay flexible and avoid capital expenditures: these are tips shared for entrepreneurs struggling in a recession.
  8. 12 Facts About Entrepreneurs That Will Likely Surprise You: Get surprising statistics about the education, experience and personality traits of entrepreneurs.
  9. How to survive the first 3 weeks of launching your company: Learn how to use feedback and market your product in the early stages.
  10. How You Can Leverage a Lay-off: This post points out that being unemployed could be the perfect opportunity to start your own business.
  11. Startup Help — at the Unemployment Office: Read this blog to find a new place to find assistance for your new company.

Getting Financed

These posts will introduce you to strategies for finding, pitching and winning over investors.

  1. Raise Money for Your Business Despite Recession: Getting financed during a recession isn’t hopeless, and this post tells you why.
  2. Getting Financing for Your Business: Learn how and where to find “smart” money.
  3. Startup Financing with a Twist: Share Your Future: Discover how to share profits with investors by reading this post.
  4. The Best Startup Funding is Initial Sales: Learn to focus on sales even in the earliest days.
  5. 5 Rules for Pitching the Very Rich: If you want to attract private investors, read this post.
  6. How to raise money for your start-up: This numbered list has easy-to-digest suggestions for raising money.

Education

Do you really need an MBA to start your own company? These posts can help you decide what kind of experience is right for you and your business plan.

  1. Do you need an MBA to become an entrepreneur?: This post considers the real ROI of an MBA.
  2. Do you really want that MBA degree: Here you’ll get help weighing the option of going to business school.
  3. More on Entrepreneurship: Book Smarts or Gut Instinct?: This post may help you make the decision to go to b-school or drop out.
  4. 5 Entrepreneurship Basics B-Schools Don’t Teach: You’ll need to work on people skills, ethics, work-life balance and risk on your own.
  5. Can B-Schools Teach Entrepreneurship: This post will help you understand what you’ll learn in b-school.

Management

You have to be a terrific manager of yourself, your time, and your employees if you want to succeed, especially in the early days.

  1. The Truth About Managing Generations X and Y: Learn how to manage professionals who are obsessed with technology and contributing from the get-go.
  2. Staying with No: Read this post to learn how to stick to your decision to say “no.”
  3. Why Managers Don’t See Problems Until It’s Too Late: You’ll have to learn how to ask employees questions and find out what’s going on without relying on anyone telling you the truth.
  4. Build Your Management Team: This post will help you appoint other managers to oversee operations.
  5. Professional Team Management Tips for Creative People: This post clearly outlines why and how creative types can be good managers.
  6. The Manager’s Cheat Sheet: 101 Common-Sense Rules for Leaders: Get 101 management tips and ideas, from using correct body language to meeting deadlines to getting along with employees.
  7. Kurt Lewin’s Force Field Analysis: Decision Making Made Easy: Study the Lewin Force Field Analysis method for making better decisions.
  8. 20 Tips for Project Management Success: You’ll learn how to prepare for and execute streamlined projects by managing a team when you read this post.
  9. How to Deal with a Difficult Boss: Solutions to 7 Types of Bad Management Styles: Make sure you’re not guilty of acting like the control-freak or absent manager.
  10. How to Find the Right Management Style: Read this article for tips on adopting a management style that meshes with your personality.

Marketing and Branding

These blog posts share tips for creating and building your brand and getting the word out about your company.

  1. Personal Branding Tip: What if I’m a Jack of All Trades?: Here you’ll get tips for focusing on your company while reconciling your multiple talents.
  2. 14 web marketing tips for startups: Scott Clark shares web marketing tips for newbie entrepreneurs.
  3. 10 Most Common Publicity Mistakes: You’ll want to avoid thinking like an advertiser and keep a safe distance between yourself and your product.
  4. 10 Tips for Entrepreneurs: David Vinjamuri of Accidental Branding can help entrepreneurs stand out and build their reputation.
  5. Creating a Business Other Companies Want to Buy: Here you’ll learn how to make your company attractive to bigger companies.
  6. If You Do Just One Thing: This post cautions you against trying to offer too many products and services under one brand name.
  7. Top 5 Branding Tips: These straightforward branding tips ask you to consider design, slogans, consistency and customers.
  8. Rock-Solid Marketing Tips for Trendy Times: Discover how to create a stable marketing strategy to attract loyal customers.
  9. Practical Marketing Tips for New Entrepreneurs: This WSJ article answers questions like “How do most new businesses get their first customer?” and “What do new business owners usually do well in regard to marketing?”
  10. Street Smarts: Your Good Name: Find out how to get your competitors to sing your praises.

HR and Office Management

Learn how to promote an efficient office culture and recruit and retain quality employees.

  1. Are Gen Y Workers Good for Business?: Read this post to find out if you should be hiring workers from Generation Y.
  2. How to assemble the perfect team Learn how to recruit executives for your team.
  3. Hold On to Top Employees by Making Them Marketable: This post explains why training and investing in employees can make them stay with you.
  4. Hiring a Manager: Find out how to screen employees and applicants for management positions.
  5. Ten Employee Training Tips: Even before you start training, learn how to identify your own needs and promote a culture of learning.
  6. Keep your workers and dump your real estate: Rosemary Peavler believes that your workers are more valuable than office space.
  7. The Office: Damned with Faint Praise: Learn how to praise your employees.
  8. Performance Management: Get What You Request and Reward: Susan M. Heathfield’s guide to performance management encourages you to develop clear job descriptions, provide coaching, and conduct quarterly evaluations.
  9. Promote self-discipline: Create a work environment that promotes self-discipline and allows your employees to clearly understand your expectations.

Leadership

Being a strong leader means being innovative, accountable and ethical. You’ll find tips and insight into working on your leadership skills here.

  1. You Will Make Mistakes. Deal With It: When you feel like a failure, turn to this post.
  2. The Difference Between a Manager and a Leader is Innovation: Learn how to become a more innovative leader and not just a delegator.
  3. How to ask for help – without looking stupid: This post can help you master the art of asking for help without looking unprepared or inexperienced.
  4. 5 Tips to Keep You Sharp: Scott Halford reinforces the idea that lifelong learning is paramount for entrepreneurs.
  5. Test Yourself: Would You Act Unethically on the Job?: Find out if you’re strong enough to make tough decisions.
  6. Leadership isn’t about You: Being a leader isn’t about being the most powerful person in the room. Find out what it is about.
  7. Win-Win Negotiation: How to Get the Best Solution for All Involved: Learn how to anticipate and plan for the needs of everyone, not just your own agenda.
  8. 10 Tips for Taking Yourself Seriously, So Your Employees Do, Too: Tips like “be on time everyday” and “don’t go drinking with your assistant” will help your employees view you as a true leader.
  9. 11 Principles of Entrepreneurial Leadership: Learn how to accept responsibility, lead by example and become a better brainstormer.
  10. Leadership Tips to Create Greater Accountability in Your Organization: Being a good leader means being able to inspire your employees to become more accountable too.

Work Culture

Before working for yourself, find out what you’ll have to sacrifice, and what you’ll get in return.

  1. Three Reasons Not to Become an Entrepreneur: This post points to stability, success and social interaction as things you may not find as an entrepreneur.
  2. MBAs vs. Entrepreneurs: Who Has the Right Stuff for Tough Times: Just based on your experience, find out if you have what it takes to survive a recession or slump.
  3. Where to Focus: Passion or Ability?: Should you throw yourself into a business that focuses on what you love or something you’re naturally good at?
  4. How to benefit from a freelancer’s mind-set: Here you’ll learn tactics for hustling, finding your passion and monitoring your reputation.
  5. Stress Management Tips for Entrepreneurs and Small Business Owners: Figure out how to take time out for yourself.
  6. 6 Time Management Skills for Entrepreneurs: Learn “anti-multi-tasking” and strategies for disconnecting.
  7. Epitaph for an Entrepreneur: If you have a family, read this post for tips on managing time at home and at work.
  8. Entrepreneurs take lead in offering best work-life options: Good entrepreneurs extend their own flexible schedules to their employees, too.
  9. No Time to Read This? Read This: This article will coach you to better time management practices.
  10. Creating a Business Culture: Watch this video to learn how to set up a productive, enjoyable business culture.

Internet and Technology

Get social media marketing tips and ideas for saving money on tech costs here.

  1. 5 Misplaced Social Networking Fears: Starr Hall shares 5 tips for calmer, more effective social networking for business owners.
  2. 4 Tech Tips to Keep Ahead of the Game for New Entrepreneurs: Find out which tech tips are most important for staying relevant.
  3. 51 Tips for Saving Money on Technology: Cut your IT costs with the help of these tips.
  4. Take a Vacation from Your Email: Try out this experiment if technology is getting the best of you.
  5. How to Make Your Website Really Sell: Your website shouldn’t just be a place to share information, it should be a platform on which to win customer loyalty.

Customers and Sales

These blog posts focus on reaching out to customers, old and new.

  1. How to Take Your Customers from Happy to Wowed: Having happy customers isn’t enough: learn how to wow them instead.
  2. 9 Principles of Quality Customer Service: Read this guide to understand why customer service costs money.
  3. Training Salespeople to Stop Choking and Start Selling: The Secret to Building Sales Confidence: You’ll get tips for building a quality team and increasing sales here.
  4. Milking Customer Loyalty: Find out how to use your customers’ loyalty to find new business.

Money

From tax issues to accounting to saving money, aspiring entrepreneurs will learn to anticipate a range of money matters after reading these posts.

  1. The Accounting Cycle for a Small Business: Here you’ll find a guide for organizing business accounts.
  2. 50 Ways to Save Money in Your Business: You’re probably trying to cut costs any way you can, and this post can help.
  3. How Strong Are Your Business Finances? Can You Pass the 3 to 6 Test?: Can you set aside 3-to-6 months’ worth of fixed costs?
  4. 10 Money Tips for Young Entrepreneurs to Avoid Premature Bankruptcy: Don’t ruin your golden idea by going bankrupt.
  5. 20 Tips to Save Time and Money in Your Small Business: Shop around for banking deals, do more tasks yourself, and save electricity and other utilities.
  6. Use Your Personal Credit Card for Business Operations: Find out why using your personal credit card may help you in the long run.
  7. Debt Financing: Pros and Cons: Read about debt financing here if you’re considering going this route to pay for start-up costs.
  8. 10 Ways to Save Money on Small Business Taxes: This post encourages you to track expenses carefully, pay taxes on time and outsource some business functions.
  9. Before You Apply for a Business Loan: Get organized and do the numbers before you apply for a loan.
  10. Startup Financial Tips from Mark Cuban and 4 Other Entrepreneurs: Get financial tips from other entrepreneurs.

Business Plans and Project Management

Learn how to develop, pitch and manage business plans from day one through your entire entrepreneurial career.

  1. Live with Planning, Not Just the Plan: Get tips on organizing Plans A and B.
  2. What Your Company Can Learn from Netflix: Netflix has stolen business from DVD-rental stores, and find out how you can model your business after a similar plan.
  3. Business Plans are Always Wrong: Discover the paradox of business planning.
  4. Plan-as-you-go Business Planning: Learn this strategy of business planning.
  5. Why You Need a Business Plan: This WSJ post makes a good argument for being prepared.

Miscellaneous

Get even more tips from other entrepreneurs on saving money, learning from your mistakes, and getting started in these posts.

  1. 10 Lessons Learned in 22 Years of Bootstrapping: Check out this list to see if you’re making the same mistakes.
  2. 6 Tips for Involving Your Kids in Your Business: If you want your kids to eventually take over the family business, read this post.
  3. 25 Tips for Entrepreneurs by Entrepreneurs: Tips here include “avoid isolation” and “get trained.”
  4. How to Cope with Overnight Success: It might sound great a first, but overnight success also means a lot of sudden responsibility.
  5. Become a Natural Presenter with this Simple Oral Presentation Checklist: Whether you’re pitching investors or giving an office pep talk, this guide will help you become a natural presenter.
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10 Resource: For Startup & Entrepreneurs

4/12/2009

120308_twitter_addicted

I would like to share few tools — where you can get essential tools to design, development, email newsletter, redesigning, user experiences and usability, web improvement, logo designing and web trends.

  1. 10 Essential Online Tools for Your Startup – http://bit.ly/7RiAOU
  2. Design Tips for Startups – http://bit.ly/4xtN0L
  3. A Guide to Creating Email Newsletters – http://bit.ly/QPTqL
  4. Redesign: When To Relaunch The Site and Best Practices – http://bit.ly/451GGW
  5. How to Improve User Experience – http://bit.ly/4b6wd0 Read the rest of this article »
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10 Secrets, Behind The Successful Entrepreneurs

2/12/2009

successful entrepreneur

Running a one-person business is a creative, flexible and challenging way to become your own boss and chart your own future. It is about creating a life, as it is about making a living. It takes courage, determination and foresight to decide to become an entrepreneur. From the relatively safe cocoon of the corporate world, where paychecks arrive regularly, you will be venturing into the unchartered territories of business.

Is there a way to determine whether you can be a successful entrepreneur, or you are better off to work for somebody else? Alas, there is no formula for success. However, most successful entrepreneurs share these ten characteristics. Check if you possess any one of them: Read the rest of this article »

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