Operating without budgets.
Do you have a startup budget? Now that you’ve launched can you show me your operating budget (by month)? If not, that’s problematic. Do you have a sales budget – a forecast of what you plan to earn for the year? If not, how can you plan to reach non-existent sales levels?
Running low on cash? Can I take a peek at your cash budget? Don’t have one? That could be a main culprit as to why you have erratic cash overages and shortages. I know that budgeting may not be the “fun part” of entrepreneurship, but it is very necessary. If you’d rather not dig into your books solo, hire a CPA or accountant to help you.
Believing the hype.
Seasoned entrepreneurs know that people are liable to say and do anything. It doesn’t make them bad people necessarily, but it does mean that you need to keep your head on the swivel – at all times.
Everyone has an agenda – some good, others bad. So many entrepreneurs work with clowns and buffoons and “the problems caused by a bad partner or employee almost always outweigh the benefits of their talent.” (Venture Beat)
It’s your responsibility to decipher an agenda and decide how (and if) it aligns with yours. Conduct the due diligence necessary on every hand shake, every opportunity and every plan.
When you take responsibility for the hype, you free yourself from future confusion, disappointment or sheer and utter failure from bad decisions that could have been easily avoided with prior leg work and information.
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