Things that Aren't Worth It for Entrepreneurs

Several weeks ago I found a friend's list on Facebook of things that she doesn't think are worth it in life.  Her list was very entertaining with things like fast food, one night stands, and dollar stores.  I thought about this post, and I love the concept of thinking about things that are not equal their value or aren't worth the side effects.  So, I made a list of things that are just not worth it for entrepreneurs working on a startup.   

Things that Aren't Worth It for Entrepreneurs

•  Seeking investment capital to start. Unless you have (A) an incredible entrepreneur or professional track record AND either (B) a wealthy and generous professional or friend network or (C) a wealthy and supportive family, chances are you aren't going to find funding to start a business.  This is especially true in this economy, and it's an important thing to grasp early on. 
  
  In order for your business to get off the ground, you'll need sales right off the bat and the personal resources (time, money, and energy) until your sales pipeline and bank account are always full.  Seeking an angel investment or venture capital can take an incredible amount of time.  Make sure it's a possibility for you, and also if your potential investors are friends/family, make sure the strings attached are worth it.
  
  
• Over-developing a product before selling. It's very common for entrepreneurs to procrastinate when it comes to getting out there, talking to your target market, and making sales.  Instead of doing these things, it's easy to put all of your energy into your product.  This can waste a lot of time and money, and it's important to make enhancements to a product based on customer input and not only your own ideas.  Keep your product simple at first, and sell it!
  
  
• Working all day every day. It's very true that entrepreneurs often have twice the pressure of other workers.  In the beginning, we don't know where money will come from next, and we have a lot of responsibilities and tasks to juggle.  That's why it's easy for us to work nonstop.  We give up vacations, weekends, and time with family for our new found passion.  But the honest truth is that our businesses don't love us back like the people who are important to us, and like any relationship, it's important to have personal time in order to be your best.
  
  
• Not making money. Every new business has an initial development and planning stage that leaves entrepreneurs with shallow pockets.  You have a coupe months to get things together before you need to bring in money.  The problem arises when you start bringing in a little money and then pour it back in the business.  "I'll pay myself later."  Bad idea- in order to not lose your sanity and self-worth, pay yourself something from the get go.
  
  
• Chasing the wrong customers. It's important to know who best fits the product or service you offer, and to make sure you target them correctly.  When you attract the wrong customers, it's difficult to satisfy them, and you end up losing time and money in the process.  Know who to please and who to let go.  It's just like dating.  If you're not on the same page, why continue seeing one another?
  
  
• Partners that don't "get" it. Establishing a partnership is a very tricky thing.  It's very important to understand why someone is interested in the opportunity and exactly what they expect to get out of it.  Don't except help from people who are not fully invested in the cause and are not passionate about what you're doing-- even if they have a skill you think would benefit your business.  You can find the same skill in someone who will support your mission.  This saves so much headache later on.
  
  
• Working without an agreement. This is a HUGE no-no in my book.  We've all done this, and I've never heard of a good end result.  If you don't draw up terms and plan for dissolution, you're going to get screwed.  Coming to the table and signing an offer means that both parties understand their responsibilities, role, and reciprocity.  In the event that things go wrong, you have the agreement to go back to for the answer.  It's important to thoughtfully consider an agreement before signing and to re-negotiate as things change.
  
  
• Not getting help. As I mentioned in my last post, getting help is essential for entrepreneurs- especially if it's the first business.  You'll be more efficient and focused if you have guidance from people who have been there and know what to do.  Think of all the time you waste figuring out basic things like licensing, accounting, and marketing, when there are people who know exactly what you need to do and can communicate that to you in a matter of hours. 
  
  
• Feature creep. Every time you add a new feature to your product or service (especially if it's tech), you're adding a layer of complexity.  It's important to build in a simple, intuitive fashion from the get go.  Know what your audience needs and what the end result is before you build.  Adding layers of complexity as you go will make maintenance and operations more complicated than it needs to be.
  
  
• Don't recreate the wheel. Be innovative-yes!  But there's no need to recreate the wheel when it comes to operations, management, and other areas.  Business has existed for many, many years and there are basics that have been proven to be successful time and time again.  The same thing goes for software.  Why build a custom CRM when there are so many tools out there like Highrise and Salesforce.

If you need help focusing your efforts and getting your startup marketed and off the ground, email me. I offer consulting services on an as need basis.