THE FIVE MOST COMMON START-UP ERRORS

The First Error: Mistaking Desire For Compulsion

All error springs from flawed assumptions. If there are no assumptions, there can be no error.

“Assumption is the mother of all fuck-ups.” Those seven words should be carved into the heart of every entrepreneur.

As far as getting rich is concerned, the cardinal error is to begin such a quest in the vague belief that you would like to be rich. Wishing or desiring to be rich and sexual fantasy is perhaps the most commonplace of human desires.

Wishing for or desiring something is futile without an inner compulsion to achieve it. 

The Second Error: Over-optimism Concerning Cash Flow

Cash flow is the lifeblood of any business. You must plan for the worst and hope for the best in all matters relating to the cash flowing in and out of your start-up company.

To improve cash flow in a start-up;

• Keep payroll down to an absolute minimum.
• Never sign long-term rent agreements or take upmarket office space.
• Do not be shy to call customers who owe you money personally.
• Turn off light, computers, printers, and copiers on when not in use. 

The Third Error: Reinforcing Failure

Success they say is the ability to go from one failure to another, unrepentant and without losing enthusiasm. But sometimes failure occurs so that we can safely cease to reinforce it and move on. Know when to move on.

The Fourth Error: Thinking Small And Acting Big

The corollary of thinking big is to act small. Just because you have a success or two under your belt doesn’t mean you have it made. 

Once you begin to believe that you are infallible, that success will automatically lead to more success, you will fail. Believing your own bullshit is always a perilous activity, but never more fatal than for the owner of a start-up venture.

Acting small means, remaining in touch, flexible, and constantly examining how your company could do better. Not playing the great “I Am”

Set a good example to your employees because they either going to resent you or emulate you.

Every day you have to hit the ground running, putting in more hours than even your most dedicated member of staff. 

You have to be willing to listen and to learn and to emulate success elsewhere. Think big, act small. It’s a recipe that never goes out of style. 

The Fifth Error: Skimping On Talent

You need to identify the talent. Hire, and nurture others with talent. There is no substitute for talent. 

Talent is the key to sustained growth, and growth is the key to early wealth. You have to identify and hire talent. You can’t skimp on it. Also read How To Get Rich by Donald Trump.

CARDINAL VIRTUES

Persistence

Stubbornness is not persistence. Stubbornness implies you intend to persist despite plentiful evidence that you should not.

Persistence is a vital attribute for those who wish to become rich, or who wish to achieve anything worthwhile for that matter. Acknowledging a mistake and making new plans of action when in the wrong track is not a weakness, but a sign of clear thinking. 

Quitting is not dishonorable. Quitting when you believe you can still succeed is. You must keep the faith.

Self-belief

Persistence is not quite as important as self-belief. Self-belief is a priceless asset. Without self-belief, nothing can be accomplished. With it, nothing is impossible. 

It is doubt multiplied by the fear of failure that leads to the vicious cycle where self-belief is eroded and nothing is achieved.

Trust your instincts

Do not be a slave to them, but when your instincts are screaming, go! go! go! you to decide whether you want to be rich or not. 

Make more baskets: diversify!

Instead of having one type of business in different locations which is still many eggs in one basket, it is much safer to have different types businesses, the reason being customer are fickle and taste changes when that happens you need something to keep you bills paid.

Richard Branson has perfected one cardinal rule: he owns or partly-owns more baskets than almost anyone alive. It’s certainly one way to become a billionaire.

Listen and learn

Listening is the most powerful weapon after self-belief and persistence you can possess as an entrepreneur.

Just do it. It is much easier to apologize than to obtain permission.

Most people seek job security, job satisfaction, and power over others far more than they seek wealth.

OWNERSHIP! OWNERSHIP! OWNERSHIP!

To become rich be an owner and every single percentage point of anything you own is crucial. It is worth fighting for, tooth and claw. Strive to own and retain control of as near to 100 percent of any company as you can.

The paradox of ownership, we can own nothing, and thinking we can is nonsensical, we are all mortal and we take nothing with us when we die. 

Being rich is fine, and at the very least is better than being poor. But it shouldn’t be the be-all and end-all of your life or anyone’s life.

There is no amount of pie in the world worth being miserable for day after day. If you find you dislike what you are doing, then sell up and change your life. Self-imposed misery is a kind of madness. The cure is to get out.