A recent article by Alex Taussig on CNN Money is full of tips for young entrepreneurs. Taussig says that it is impossible for entrepreneurs to avoid all mistakes because starting a business can have lots of starts and stops and making mistakes and learning from them is a big part of entrepreneurship. Taussig says, however, that there are common mistakes that young entrepreneurs make that are easy to avoid.
He lists 15 mistakes that he believes young entrepreneurs should look out for when forming their new business. The common mistakes run the gamut, from how entrepreneurs see and interact with customers to how they pitch their ideas to investors and partners to how they hire their first employees. Below are a few of Taussig’s tips.
All entrepreneurs should practice their pitch and know their investors — these are not meetings and opportunities you want to just wing. You should have researched your potential investors and anticipated their tough questions before sitting down face-to-face. Develop a good story to tell about your business that is to-the-point, clear and gives potential investors and customers a good picture of your vision and plan for your business.
In order to anticipate questions about your business plan, you should be honest with yourself and identify weaknesses and how you plan to fix them before someone asks about them. If you don’t know the answer to a question, admit it and say how you specifically plan to get the answer.
Another factor that can affect your business for years to come besides investors and advisors is who you hire as employees. Taussig warns against hiring to meet short term needs while ignoring how a person will fit long-term in your company. He cautions young businesspeople that it is always easier to hire than fire a person, especially if that person is a friend.
15 mistakes young entrepreneurs make, but don’t have to (CNN Money)