People are starting businesses every day. In record numbers, hundreds nay thousands, are taking the plunge. And the bad news is 8 out of 10 will FAIL within the first year. And of those who survive 80% will be out of business within 5 years. And the failures have less to do with $$ than with attitude and behavior.

How can you avoid crashing your dreams of independence and financial success? There are some standard mistakes that will sink your ship and leave you to the ‘sharks’. That said, here is my list of top mistakes business builders make and ways to avoid them. I hope you find this useful.

  1. Skip the value proposition process

    2. This is more than a niche and better than a mission statement. This is KNOWING what value you bring to your potential clients and customers. Ask yourself, who are you; and what is it that makes you unique? That’s your value. Turn that into a short pithy statement that explains your business.

  2. Refuse to plan for success

    3. New entrepreneurs tend to take a wait-and-see attitude about business; they're waiting to see if they are going to ‘make it’. While it’s important to know that business growth takes place over time, it is your daily planning for success that translates into your daily effort and commitment that brings the success to you.

  3. Work all the time

    4. It’s tempting to think that 24/7 work on your business is going to help you, but research and experience demonstrate that it’s critical to plan time away from work. If you take two days a week off and away from your business development, you will accomplish two things. First you will be refreshed and more creative; second, you will be more productive. Work tends to expand to meet the time available. If you have 7 days to complete a project, it will take you 7 days. If you have 3 days, you can do it in 3.

  4. Don’t develop a ‘farm’ list

    5. Who are your logical strategic partners? How often will you speak with them? How can they help you with referrals? If you build your ‘farm’ list of business resources, you can strengthen the relationships and begin to count on them for business opportunities. That means, join a good networking group, take your referral sources out for coffee, send them e-mails with tidbits of info on your successes. Stay in their sights and enjoy the referrals.

  5. Adapt pressure-full selling practices

    6. Selling has a negative connotation and for good reason. For the past decade everyone’s been teaching high pressure selling. This doesn’t work well anymore and it’s especially damaging for professionals such as coaches and consultants. Think relationship, but without pressuring for closure. No one wants to be ‘closed’ they want to be opened. How can you talk without creating pressure? I have an entire workbook designed around teaching entrepreneurs how to reduce the pressure. Subscribe to my free e-mail training class to get a taste of life without pressure but filled with selling successes.

  6. Skip Networking

    7. There are three key ways to build a business: referrals, networking and public speaking. Do you know how to network? Can you go to networking events without feeling the pressures of bad selling strategies? Can you describe your business in 3 sentences? Can you do that and not sound like everyone else? You will know when your pitch is working because people will respond to your message. This is second only to knowing your value proposition (see #1).

  7. Duck away from a cogent marketing strategy

    8. Marketing costs the same whether or not it works. And most marketing doesn’t work! Why? Because the user hasn’t thought through their value proposition, niche, and pitch. Sorry, that’s the way of the world. Lots of marketing formulas are out there but many are designed for the Coca Cola’s of the world and not for the expert who is an entrepreneur. Don’t be fooled by formulas that seem logical but fall flat. Keep it simple to start and use your business card to start.

  8. Fail to distinguish between working ON a business and IN a business

    9. Okay, what’s this? An important distinction. That’s what, working ON your biz is about marketing, networking, paying your bills, working IN your business is having clients, customers, etc. Divide your week between IN and ON so that you don’t forget to do the marketing and don’t spend too much time on the old website.

  9. Betting on Internet sales

    10. Websites are fun and there are lots of ‘sharks’ out there telling you that you can make a bundle on the Internet. Don’t believe it. Build a real business first and then branch out into that highly competitive and shark-invested Internet. E-zines, e-books, audiotapes, are all great but what’s your compelling value proposition and how do you know that’s what folks want? Who are your strategic partners, where’s your farm club? See? It’s all connected

  10. Ignore intuition

    11. So, you get a hit in your gut, maybe you bumped into a ‘shark’ and he’s selling you a bill of goods about business and it just sounds too good to be true. Well, guess what, it probably is to good to be true, that is! You don’t have to buy on the spot. Anyone who says you can save 50% for the next 15 minutes isn’t offering you anything worth buying.

  11. Fail to be assertive

    12. There are lots and lots of ‘sharks’ out there willing and able to part you from your money. People promising 10 figure income off on-line sales. And others happy to sell you the keys to the kingdom.

  12. Talk but don’t Do

    13. Okay, is this going to be a business or is it a hobby? If you’re in business then get past collecting information and start doing. Try things out, fail, try again, and get ready to spend a bit of money. My favorite story is about the executive director of a school. The school lost its lease and had to move on. The ED was all talk and no action. He was so sure he was going to be rescued that he failed to rescue himself. The school is closed, he’s out a cool ¼ million (dollars that is) and the kids are scrambling for a new school. Talk is good but not enough. Get out there and get your business and have a good time doing it!

    If you found these helpful and want more business-building guidance and advice, then you will find free reports and free e-courses at my website: www.confidenceconnections.com.

Author's Bio: 

Kathleen B. Schulweis is a Professional Certified Coach, trained in Co-Active Coaching as well as a professional Sociologist. She has over 20 years of professional experience working with professionals from UCLA, USC, and Caltech. Her coaching practice has a professional growth and development program for women and men, especially helping professionals close the gap between their behavior and their fulfillment. She is the founder of Confidence Connections, http://www.confidenceconnections.com. Do you desire to manage change and combine professional success with personal fulfillment? Contact Kathleen.