Millions of workers dream of starting their own business, but the odds of being successful are daunting enough to keep most hopefuls on the sidelines.
...Dreaming big comes naturally to most entrepreneurs, but business acumen is something that has to be honed and practiced.
Our very own Wendy Vinson, President of E-Myth Worldwide, participated in an interview with Bankrate.com about the common mistakes people make when starting a business.
5 ways to crash your small business
Check out the full article on Bankrate.com to read more about where most start up entrepreneurs go wrong.
Maru M. says:
After 14 years of enjoying moderate succes as the owner of the only cookie shop in the Yucatan, in the South East of Mexico, I decided to join the Mastery Impact training, because I loved the book (read it in 2004) and because I sensed something was about to change...
Talk about good timing! First lots of competition suddenly arrived, then , economic crisis, and now this flu! (all businesses in our 100% flu free zone state were order to close from May 2nd to May 6th on one of the biggest and awaited long weekends in the country!)
My point: I did not have any idea of all the things I was doing wrong, but reading the above list I realized I could have checked them all 10 months ago! The 5 ways to crash!! So imagine behaving like this and on top of it all these sudden violent and unexpected changes?
E Myth Mastery Impact has opened my eyes just in time! I feel more secure and optimistic now, in the middle of this caos.Knowledge is power! : )
How can I ever thank you guys?
Submitted May 4, 2009 7:39 PM
Frances G. says:
i am the classic emyth example of entrepreneur, manager and technician.the technician is burnt out, the manager is floundering and the entrepreneur is wondering how it can be fixed. i started underfunded and working solo. i own a bakery and am basically a manufacturer without enough product. do i infuse cash(borrow) and "start over" or do i say this is it?
Submitted May 7, 2009 1:02 AM
E-Myth Business Coach says:
In response to Frances -
We know this feels painful and uncomfortable right now. And we also know that this is a sign of progress. To be willing to look at the truth of a situation, no matter how painful, is an essential step in growth and change. Congratulations for being willing to look at this and identifying the problem before it becomes a larger one.
The first place we would recommend to start is by taking an objective look at your business and the concept behind it. Do you have a great entrepreneurial concept that if given enough resources (time, money, energy) would offer you a good return? With a question of this magnitude, there are a few places that you need to go to first, before you start considering bringing in additional funds for your business.
Review Chapter 13 of The E-Myth Revisited and pay particular attention to page 153. This is where Michael Gerber discusses an essential standard for your business: An Opportunity Worth Pursuing. He asks the question: "Does the business I have in mind alleviate a frustration experienced by a large enough group of consumers to make it worth my while?" This is a question that can only be answered by thorough market research. (Stay tuned for a virtual training on this very topic in the coming weeks.) You MUST find out if there is a large enough demand for your product or service, at a price that generates your desired level of profit or the "opportunity" that you are thinking to continue to pursue, turns into nothing more than another thing to do. If you discover that this is truly a viable and profitable opportunity, then finding the right funding is critical for the success of your organizations growth.
If, on the other hand, you got into the business looking at doing something you love (baking ...hmmm, sounds familiar) and are finding this isn't enough to bring revenue in your door - then you may want to spend some time validating the need in your market place, coming up with a viable vision before investing more money, time and resources.
If you aren't profitable, and have no reasonable expectation of becoming profitable, your business will not give you or anyone else what they want and need from it - not your clients, not your employees, not your vendors, and not you. You could have the most noble intentions in the world, with clear statements about how you want to serve your customers and what kind of environment you want to create for your employees, but NONE of that will happen without profit.
You need the best professional financial advice you can get here. It's a good time to make an appointment with your accountant and ask for assistance. Use your accountant as a resource to help you consider the financial and the strategic implications of your options. Your accountant can also assist you with the different financial scenarios.
We are here to help you along the way! Stay rooted in the entrepreneurial perspective as you work through these questions and issues.
Submitted May 7, 2009 10:43 AM
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