We hope you have enjoyed the first two 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, long hours, and little pay (for the first year or two). People can talk the talk, but can they walk the walk? The second mistake is a common one, and that is under-capitalization of your business. Check out the first two posts in our entrepreneurial series to learn more.
I’ve made a lot of mistakes over the years and, as the founder of two multi-dealership companies, I’ve seen a lot of new business owners make similar mistakes. This series is intended to help you avoid these pitfalls, or at least be aware of them so you know what to look for if you do happen to stumble into them.
Entrepreneurial Mistake #3: You Think You’re Invincible
When you’re young and you have enormous success early on, you get this feeling of invincibility. Your ego gets really big because people keep putting you up on a pedestal and you believe all the hype.
In 1985, my business was growing big time so I hired a CEO. He got us into a huge amount of debt and we couldn’t pay our bills. I was within a week or two of losing California Closets when a mentor bailed me out. I fired the CEO and we got the business turned around. But it was an important lesson for me. I was young and immature. I had a house on top of the hill, and I thought I knew it all. That was a dangerous combination.
Everybody can fail. When it comes to business, having a feeling of invincibility, and even a big ego, can harm you rather than help you establish a name for yourself in the community.
Interested in learning about the last mistake to avoid when starting your own business? You can download our ebook here, or you can subscribe to our blog and we’ll update you next week with mistake #4.