We hope you have enjoyed the first three blogs in our series of mistakes to avoid when starting your own business.
The first mistake you need to avoid when thinking of becoming an entrepreneur is to understand that it takes a lot of hard work and many long hours. Make sure you are up for the challenge! The second mistake is under-capitalizing your business. The third mistake is letting your ego get in the way of your business. Check out the first three posts in our entrepreneurial series to learn more.
This entreprenurial series is intended to help you avoid these pitfalls, or at least be aware of them so you know what to look for on your business journey.
Entrepreneurial Mistake #4: Be Careful Who You Hire
Say you’ve got a best friend who you’ve known for 30 years, but you’re looking to get rid of him as a friend. Here’s the answer: Give him a job. He’ll hate you in six months. Hiring friends and family doesn’t work. I know that’s not an absolute, but it holds true in my experience, and in all the businesses I’ve watched. There’s an opportunity cost when you continue to employ someone who isn’t working well with your team. At a start up, that opportunity cost is often the difference between success and failure.
The things that I generally tell people not to do are things I did myself. We all learn from our mistakes. I believe the CEO I hired that I mentioned in Mistake #3 was trying to take over my business. He got us into a mess, but his plan was to ride in and offer to buy the business and save the day. I’m a pretty optimistic person but I just hate partnerships. I don’t think they work out. Over the years, I’ve seen many of our franchises or dealerships start out as partnerships, but very few have made it as a business partnership. The problem revolves around two core issues:
- There’s not enough money to go around
- There’s too much money to go around
Either way, you’ve got conflict. Someone has to be the boss.
Remember that when it comes to starting your own business, it’s all about passion! It’s hard work; if you are going to put in that much effort, you better be passionate about what you do. The best advice anyone ever gave me was “enthusiasm is contagious – catch it!” And, you know what? It’s true. I am living proof.
I’ve learned as much from success as I have from failures, which makes me an enthusiastic mentor. When consulting with our dealers, I am always candid about my mistakes and I’ll call out the pitfalls, hoping they won’t fall into them, too. I am deeply committed to helping those around me succeed.
If you have ever dreamed of owning your own business or if you already have a business and are looking for a new perspective, take the next step towards an exciting opportunity with Organizers Direct. Learn more about becoming a dealer.
Also, we invite you download the complete entrepreneurial mistakes ebook so you can refer back to it as you start on your entrepreneurial journey.