Posted: Oct 23, 07
11:53am
Starting your own company is as American as apple pie and whatever else you think is American.
But so is the failure rate of those new concerns. Some studies say as many as 90% of all new firms fail in the first year. I know. The first two businesses I started years ago both failed. The good news is I learned from those mistakes and the next 3 have been successful.
Here's what my personal experiences and those of countless other people I know say are the top reasons start-ups tank;
1. Start for the wrong reason--we think it will be fun, we wont have to work so darn hard, and we will have lots of flexibility. I'm not saying it's impossible to have those things, but first-time entrepreneurs say you have to want to begin this business because of your drop-dead passion for the products or services, or whatever you're doing.
2. Not enough capital--most successful first-timers say that you need a minimum of 1-2 years cash reserves to fund the business, let alone pay yourself. I know people who have done it for much less than that, but it probably makes sense to take the ultra-conservative route to begin. And I certainly wouldn't recommend you drain all your assets to make it go.
3. Lack of planning---although most entrepreneurs like to shoot from the hip at times, you'll probably need to have a very detailed comprehensive game plan and back-up contingency plans just in case. You know, plan your work and work your plan.
With all that said, I'm a huge fan of start-ups. Especially if they are well researched before you take the plunge. Start by joining the new Work group, Start Your Own Business, to ask questions and share ideas with fellow members who have ideas and experiences to share with you.
