How To Avoid The Top 10 Deadly Small Business Mistakes

Entrepreneurship was a contributing factor in stabilizing a recession economy in the early 1990s, according to a Small Business Administration report. In the report, "The New American Evolution: The Role and Impact of Small Firms", the U.S. economy was reinvented, "by fostering and promoting entrepreneurial activity." Small business employment increased by 1,880,000 (36.8 percent) over five years between 1990 and 1995.

Meir Liraz, president of BizMove.Com said, "There are 25 million small businesses in America and those businesses account for 99.7 percent of all employers."

BizMove.com, operator of "The Small Business Knowledge Base" web site (www.bizmove.com), recently compiled a listing of how to avoid the top 10 deadly small business mistakes as a means to help those entrepreneurs looking for the alternative to employment - business ownership:

The Top 10 Deadly Small Business Mistakes And How To Avoid Them

1. Getting Wedded To an Idea And Sticking With It Too Long. Don't marry a single idea. Remember, ideas are the currency of entrepreneurs. Play with many ideas and see which ones bring money and success.



2. No Marketing Plan. A marketing plan creates the kind of attention you need to get in front of the right types of people, companies, etc. It is what attracts people to you. There may be as many as 25 ways to market your business at no or low cost. A good marketing plan implemented effectively, efficiently, elegantly and consistently, could eliminate the need for cold calls.



3. Not Knowing Your Customers. Changes in your customers' preferences and your competitors' products and services can leave you in the dust unless you get to know your customers well. Learn what they want now and will likely want in the future, what their buying patterns are and how you can be a resource for them even if you don't have the right products or services for them now.



4. Ignoring Your Cash Position. The world (a.k.a. customers) doesn't respond to even superior products in the timeframe that you think they should. You'll need plenty of cash to sustain yourself in the meantime.



5. Ignoring Employees. Motivating, coaching and managing your staff is probably one of your toughest challenges as an entrepreneur/business owner today. Without your patience, persistence and people skills, your problems can multiply quickly. Morale, productivity and profits can easily be destroyed.



6. Confusing Likelihood With Reality. The successful entrepreneur lives in a world of likelihood but spends money in the world of reality.



7. No Sales Plan. Without a sales plan, there's no serious way to gauge the financial growth and progress of your business. You need a realistic map for where the sales will come from, how they will come and from whom.



8. Being a Lone Ranger. You might be the key to everything, but you cannot do everything and grow at the same time. Even modest success can overwhelm you unless you hire the right staff and delegate responsibility.



9. No Mastermind. Get an advisory board or a mentor. That sounds crazy for a small operation, but it's not. The board can be family members or friends that you trust. Ask them to be your board of directors and review your business plans and results with them. Having someone to bounce ideas off and get an objective opinion is critical.



10. Giving Up. Some of the most successful entrepreneurs failed several times before doing extremely well. So, if you're failing, fail. And fail fast. Learn. And try again, with this new wisdom. Do not give up. Yet, do not suffer, either.

BizMove.com is a free informational site for entrepreneurs, small business owners and operators that provides a guide for planning, starting, growing and managing a small business.

According to Liraz, the two most popular features at the site are: The Entrepreneur Quiz, an interactive quiz that allows a visitor to assess his or her entrepreneur skills, and The Top 100 Inspiring Anecdotes and Stories - a collection of inspiring anecdotes, wisdom and wit.