This is a guest post by Ofili.
There is nothing more frustrating for me than to see a powerful business destroyed by silly silly mistakes. And I see it every day…on facebook, at cafes, at networking events, everywhere…businesses that should be exploding are instead limited by errors. So I compiled a list…not because I was smart but because I was tired of yelling at my computer screen. The list is “7 Inexcusable Mistakes of Entrepreneurship every business owner outta avoid!”
Mistake #1 Owning an idea instead of a business: This is the first and most critical error of entrepreneurship! A lot of people own ideas that they claim would change the world, but they do not own a business. One of the most controversial blogs I ever wrote is titled “Why Writing a business plan destroys entrepreneurship.” In that article I write on why business plans are the greatest stumbling block for entrepreneurs, not because they are unimportant…but because they discourage the execution of ideas by causing the writer to over think versus execute. Mark Zuckerberg the CEO of facebook was sued for over $120 million because he allegedly executed an idea that was not his….but the fact is this, if he never executed the idea, facebook would never have been created. Remember owning an idea is not the same thing as owning a business.
Mistake #2 Not having professional pictures of yourself or your business: If there is anything that makes me want to fling my laptop on the ground in annoyance it is this error. You cannot…I repeat you cannot create a reputable image for your company if your pictures are unprofessional. I see people on facebook trying represent themselves as branding experts or professional realtors, while their photograph is low resolution…grainy…or is an inebriated picture of themselves. Absolutely inexcusable…In Walt Disney’s words people think in images and if people see unprofessional pictures they automatically link your business with that. Spend Invest the money ($150 to $250) to have a professional draw take a picture of you or your business. I guarantee you that that would be the best investment you will ever make. Get rid of the unprofessional pictures…please…
Mistake#3 Investing in everything but yourself: People would spend thousands of dollars building a state of the art website or restaurant, but would not spend a dime to teach themselves how to market their business. And the key reason is that they fail to see themselves as an important part of their business. If you want your business to succeed you have to ensure that you are spending ample time investing in yourself. Your investment does not need to be financial it could be as simple as reading the right type of business book or attending a free conference that relates to your business. As long as you make a conscious effort to invest in yourself your business will flourish. The greatest difference I saw in my business occurred after I paid for marketing/branding classes. Through the knowledge I received at those classes I have been able to grow my business revenue and increase its exposure. Ensure you invest in yourself.
Mistake#4 Signing Verbal Contracts: I cannot remember where I saw this quote, a verbal contract is as good as the paper it is written on…think about it. I have seen childhood friendships, family relationships and even marriages destroyed because of the “verbal contract” error. The reason is because a verbal contract is interpreted differently by each party involved and even when all parties are in unified understanding of the contract…it is hard to enforce. When I talk to my clients or entrepreneurs about business transactions…I always insist that every single thing no matter how trivial, should be written into a contract! I don’t care if it is a family member or even your wife…write a contract! Even when I am working with my brother on my website I write a contract. Executing a business transaction/activity without a written contract is like running a country without a constitution. Write a contract…if you need a sample contract you can find it on Microsoft Templates or you could just contact me at ofili@ofilispeaks.com
Mistake#5 Working for FREE in hopes of being suddenly discovered: I have seen so many people used and abused by this…unless Oprah Winfrey calls you to do a show for free, you should never ever work for free. This is a mistake that I repeated over and over again in my speaking business…I believed that if I somehow gave the most incredible presentations as often as I could I would create a name for myself and the phone will start buzzing…but for 3 years nothing happened. Instead my time was undervalued/unappreciated and I became increasingly frustrated with what I was doing. It was not until I invested in myself (#3) and set a reasonable value for my time and services did I begin to grow my business and grow less frustrated. Today I see people desperate to make a name for themselves give out their services for free and sometimes even pay to give out their services for free. I remember getting a call a few months ago to do a presentation at the NISOD 2011 National Conference. I was told that it would be a great opportunity to expose myself to a large group of presenters, the only catch was that I was not going to get paid…and also I had to pay my air ticket…plus I had to pay for the hotel…and get this I also had to pay the $400 registration fee even if I was selected as a speaker! I politely declined…because I had been burnt in the past.
NOTE: I am not saying you should avoid serving your community or doing charitable events. But if your sole purpose for doing this is to get magically discovered, you will be frustrated. Also if you are told to appear on CNN please don’t ask for a fee, use your smarts =)
Mistake#6 Ignoring Social Media: If I got a dollar each time someone told me that sites such as facebook and twitter are social nuisances that need to be avoided…I would be rich! It is the same reasoning and mentality that led to the near extinction of businesses such as Barnes/Nobles and the New York times. Both companies had respectively/initially disregarded the e-books and website newspapers as fads. But within the last few months, both industries have revamped their entire marketing structure to fit the e-model. The same change is happening continually in businesses as marketing methods continually evolve daily. You owe it to your business to ensure that you stay ahead of the latest business trends. Because, a few years from today facebook might become extinct or it might become bigger. Regardless of what happens your business will prosper, but only if your place it ahead of the curve. By personally staying ahead of the curve I have seen my business grow. In November I would have sold over 1000 copies of my book, all because I tapped into the power of the social media.
Mistake #7 Electrocuting your clients: Everyday on facebook some poor soul is getting his or her wall bombarded with hundreds and hundreds of birthday wishes and smiley faces. Now there is nothing wrong with this, the only problem is that it is impersonal and easily forgotten. Unfortunately, lots of businesses treat their clients in the same way, resorting to automated email messages and pre-printed cards to stay in touch. Their use of electronic communication is so excessive that they electrocute their clients lose an opportunity to make a special connection with their clients. From my limited experience in life a personal phone call is worth more than a facebook wall post. Likewise a simple handwritten note is always worth more than an email. Stop electrocuting your clients…write a personal note =)
I want to hear from you. Give me some comments, your thoughts, your links, your ideas, opinions and beyond…especially if you disagree. I promise to write back to each and every one.
Ofili is an award winning motivational speaker, author, life coach and entrepreneur who blogs about life, success and entrepreneurial excellence. Follow him on twitter , facebook or subscribe to his blog for more success TIPS!”
|
How to Write for Traffic and Money
Enter your name and email address to download a copy of my free ebook now!
|
|
|
We hate spam just as much as you
|
PDF 
2 Pings on "7 Inexcusable Mistakes of Entrepreneurship"
44 Comments on "7 Inexcusable Mistakes of Entrepreneurship"
Superb Post.These are the common mistakes made by the most of the entrepreneurs.Thanks for your post Ofili.
Ofili, thanks for not yelling at your screen but decided to give the list of the mistakes for others to learn from it. Though, mistake are good in business with it does not repeat itself. Thanks for sharing. I’ve gained!
Thanks @secretsofentrep for the comment. I definitely had to find a solution to my yelling and hair pulling by writing this article =)
Glad you enjoyed reading =)
Ofili, thanks for sharing this tips instead of continuous yelling at your computer screen which wouldn’t bring any results. Now, we all can make corrections. Thanks for sharing. I’ve gained!
Awesome post man, I agree with the idea of having a professional picture, because it does help establish a great personal brand for an entrepreneur. I would love to know why business plan destroy entrepreneurship because I don’t really support that notion. Investing in yourself is the key to success. If you can’t invest in yourself, then you are not fit to be an entrepreneur. Thanks for sharing. Have fun.
Samuel,
Per my post http://ofilispeaks.com/monthly-success-tips-just-start/ I believe business plans are more obstacles than helpful in starting a business. I am not saying they are not important, but if you look at the facebook business model for example, it started without a business plan. It was not until they started making real large amounts of money that they had to write a business plan. Too many times I see individuals worrying about a business plan instead of starting their own business.
Here’s what I tell people who get stuck in planning eternity:
Do what Nike does and just do it.
Ofili, thanks for the post. Your point of view is really worth reading and thinking about although I can’t agree with Mistake 1. I mean planning is vital but the correct one. I have seen many companies and projects that have failed because of poor planning. Some people don’t know how to plan and do it badly.
With all other points I agree completely.
Note I am not saying for you not to plan a business…but starting a business is more important than planning a business. I know too many people that have been writing business plans for years and are yet to start a business. As a saying goes
“You can spend an enternity building your wings, but if you never take that leap, you will never fly!”
Just do it right? Only a planning without execution it’s nothing.
true talk
Yes, you are absolutely right with the comment.
What impacted me most here was people investing in everything but themselves. So true. Or they simply sink their money into hobbies and distractions. We have to reign in our spending and channel it into worthwhile pursuits.
It’s a whole different set of skills and intentions but if we sort out our spending priorities we’d be better for it. Think of the useful marketing course, advertising budget, or new tools you could buy to help elevate your business if you cut costs in the “excess” of your life.
Jon
Could not have said it better! Thanks Jon for the comment =)
In reference to #5, remember what the Joker says, “If you’re good at something… never do it for free.”
And the joker was right…
Completely agree with investing into ourselves – we often think that if we are professional now, we will be professionals forever. As you know, the world is changing so fast that our excellent knowledge a few years ago is nothing today.
True talk…everyday I realize there is something new and exciting out there…
Nicely written post. Anyone of these mistakes could definitely keep an entrepreneur from moving forward.
Thanks matthew!
Definitely made the mistake of doing stuff for free. If it’s for a good cause or something I’m passionate about, I’ll do it. But if I’m hoping to make money later from it, I’ll never do it. Mainly because I’ll never make money.
Someone also left me a comment today reminding me that when people pay for something, they value it more. If it’s free, there’s little value to it.
@Brandon…that is so true! As a public speaker, when I raise my speaking fees people take me more seriously…weird =/
#2 is so weird to me. If you have your own company, then why not come off as a human being? Can’t you have a couple pro pictures and be able to be a fun person with a social life?
The mistake I always do is Ignoring Social Media. A different kind of post saying lots of new things. Like this post so much.
=)
OFILI!
What’s up, brother? Glad to see your post on Onibalusi’s site. Funny but insightful thoughts, as always.
I agree with most of the points. But would want to bat #5 back-and-forth with you a bit.
Natuarlly, extremes on either side are usually not good.
Working for free as your only strategy for getting noticed…
or Charging top dollar to anyone inquiring about your services, before you’ve even established how good you are.
Neither is good.
Giving a sample of your services away for free, with an upsell path (FREEMIUM, as it’s sometimes called), can be a good thing.
But knowing your target audience is important.
Pursuing a freemium business model with an audience that has no intent of ever paying you anything, is a mistake.
However, if you have CNN as your audience…
or Oprah…
or even the budget decision-makers in a smaller organization…
It becomes something one should consider.
Way to spark up the convo! Congrats on the move back to Naija… and the TV appearance.
Mr. Bolaji!
Thanks for your reponse o! You are right in all aspects…timing is key…you can’t charge top dollar when you are starting out and definitely you can’t keep giving out your stuff for free in hope to snagging that big multi dollar deal. Well said and good stuff with your site…
Ofili…
Sometimes when you’re trying to enter the marketplace, working for free is a good idea – but only if you work for the right people. Usually working for a non-profit is the way to go, and one that is active and well known in the community. If you work for free for a commercial organization, they’re going to not only undervalue your services, they probably won’t even refer clients your way.
exactly Vert! Working for free is good as long as it does not cause you to undervalue your worth.
The first thing an entrepreneur should learn is the whole aspect of his business. Even if you have all resources in front of you if you have no enough knowledge on it everything is just futile in the long run. Better to know the ins and outs of business before you actually venture to it. Learn to know the strengths and weaknesses.
This is excellent post. You have researched 7 incredible mistakes which cannot be excused at all.
It is so instereting in this article.It is another helpful article by you like many other.
Thanks for sharing.
I must say there are some cool looking articles. I am going to need to go catch up! Thanks for sharing.
keep writing….
Great post – I particularly like the part about personalization of your communications. It can be slightly more time consuming, but the personal touch still does go a long way!
Definitely…I use hand written post cards form time to time and the effect has been so so great!
Mistake #1 makes it sound like you think it’s okay to steal an idea if you can execute on it. Not the most ethical of stances to take. While it’s true that facebook is a beast, If the idea was, in fact, stolen then regardless of the final product there are SERIOUS ethical implications. I would not want to align myself professionally to anyone who would condone this.
The first point is not about stealing ideas. It is about executing ideas that you have.
Hello there, just became alert to your blog through Google, and found that it is really informative. I’m gonna watch out for brussels. I’ll appreciate if you continue this in future. Many people will be benefited from your writing. Cheers!
I still remember when I was in contact with the author of a pretty famous book called “The Four Hour Workweek.” I was doing some free work for him in order to receive criticism and help in return. I finished the work and never received anything in return. You definitely have to be careful with who you’re dealing with.
What about not promoting your business? That should be the most important thing to do.
If you have any experience running a business in a so-called poor country, care to share your inspiration, high and low points etc? What other ideas do you have for entrepreneurship in such a place? Thanks.
Thanks nice post…. And yes there might be a lot of people who commit those mistakes, Thanks for your post…
This is definitely a very good read for me! Thanks for sharing this. I will bookmark this site, my brother would love to read this!