This document lists 43 common business mistakes made by first-time entrepreneurs. Some key mistakes include not understanding the difference between a good idea and a good business model, inadequate market research, poor cash flow management, unrealistic projections, lack of sales skills, poor staff management, and failing to get customer feedback. The biggest mistake of all, according to the document, is not taking any action and not starting a business at all.

1. 43 Business Mistakes
Lessons learnt by first time entrepreneurs

2.  Not Accepting good advice
I. repeatedly ignoring bad advice can make us
miss good opportunities
 Not understanding the difference between a good
idea and a good business
I. Why isn’t anyone else doing this?
II. Who will buy your product/service?
III. How many of those people are there?
IV. How much would they be willing to pay?
V. What will be the costs?
Business Mistakes

3. STARTING A BUSINESS ON A BAD IDEA
I. What need does my business fulfil?
II. Ask Around
Business Mistakes

4.  Right idea wrong person, wrong person right idea
 Thinking your customer are just like you
 Wrong location
I. Proximity to rivals
II. Parking
III. Prestige
 Thinking markets will never change
 Thinking if I build they will come
Business Mistakes

5. Business Mistakes
 Inadequate research
I. Revenue streams
II. Costs
III. Rivals
IV. Customers
V. Product

6. Business Mistakes
 Avoiding difficult tasks
 -Make a list, set deadlines, set a penalty & reward
system
 Hiding behind your desk
 -You need to reach out to customers, suppliers
and other related businesses
 Not putting your own money in it

7. Business Mistakes
 Being stupid with equity
I. Generosity, Greed & Stupid
 Burning capital
 -Burn rate
 Making Deals not relationship
i. Focus on the win-win strategy

8. Business Mistakes
 Not being hungry enough
I. Set metrics
II. What have you learned and achieved
III. “if it was easy everyone would do it”
 Not being able to sell
I. Sell your passion

9. Business Mistakes
 Not identifying all your costs
I. Staff
II. Premises
III. Fees
IV. Finance
V. Technology
VI. Non Payment
VII. Contingency Cost
VIII. Emergencies

10. Business Mistakes
 Being flattered by turnover
I. Revenue isn’t profit
 Not understanding cash flow
I. Seasonal effects
 Not doing a sensitivity analysis
I. What percentage of cost increase or revenue
decrease can you bare before you go in red

11. Business Mistakes
 Extrapolation trap
I. How many staff will it take?
II. Where will that staff work?
III. Are they enough customers?
 The One percent market mindset
 Accept good advice
I. -repeatedly ignoring bad advice can make us
miss good opportunities

12. Business Mistakes
 Not putting your own money in it
“By putting your own wealth, comfort and security on
the line, you give yourself enough motivation to
ensure that the business doesn’t fail”
 Making a poor first impression
I. Don’t Compound on Initial error
II. Manage Expectations
 Writing a business plan backwards
I. Market first, Not cost first

13. Business Mistakes
 Falling out with partners
I. Partnership Agreement
 Outrageous valuations
 Arrogance
 Growing too quickly
I. Rapid growth usually means rapid cash
consumption

14. Business Mistakes
 Disrespecting the customer
 Whose money is it
I. Mistaking salary for Profit
II. The issue of Drawings
 Failing to delegate
I. Who & How

15. Business Mistakes
 Not knowing your key performance Indicators
I. Profit is a blunt measurement tool
 Failing to manage staff
I. Pay, work, conditions, productivity, turnover,
motivation & communication
 Over complication
I. Keep it Simple

16. Business Mistakes
 Just not good enough
I. Passion can blind you to the flaws of your
business
 Selling at the wrong time
I. Newsweek was sold for $1 in 2010
 Not admitting failure
I. Would you pass an interview for your own job?

17. The Biggest Mistake is…..
Not doing anything at all