Here´s a recent Entrepreneur Magazine article by By Mark Henricks called, What Not to Do: A seasoned entrepreneur reveals the 17 most common mistakes startups make and how to avoid them–plus, the 5 things you must do to ensure success. (Thanks to Todd over at A Penny for… for the link)
It´s an interesting article.
I think many of the points also apply to intrapreneurs and leaders involved in major change initiatives.
Here are the bullets, but check out the article for yourself.
Mistake 1: Failing to spend enough time researching the business idea to see if it’s viable.
Mistake 2: Miscalculating market size, timing, ease of entry and potential market share.
Mistake 3: Underestimating financial requirements and timing.
Mistake 4: Overprojecting sales volume and timing.
Mistake 5: Making cost projections that are too low.
Mistake 6: Hiring too many people and spending too much on offices and facilities.
Mistake 7: Lacking a contingency plan for a shortfall in expectations.
Mistake 8: Bringing in unnecessary partners.
Mistake 9: Hiring for convenience rather than skill requirements.
Mistake 10: Neglecting to manage the entire company as a whole.
Mistake 11: Accepting that it’s “not possible” too easily rather than finding a way.
Mistake 12: Focusing too much on sales volume and company size rather than profit.
Mistake 13: Seeking confirmation of your actions rather than seeking the truth.
Mistake 14: Lacking simplicity in your vision.
Mistake 15: Lacking clarity of your long-term aim and business purpose.
Mistake 16: Lacking focus and identity. Mistake 17: Lacking an exit strategy.
Here´s his five suggestions. Again, read the article to get the full flavor and explanation.
1. Know your goals for the venture.
2. Recruit and hire the best people.
3. Develop a forgiving strategy.
4. Be honest with yourself.
5. Commit to the business.