1. A low cash reserve. You have to pay yourself first. If you fail, if you don’t make payroll, if a contract falls through – you need to be able to survive and at a reasonable rate. If you don’t have a cash reserve that can pay you, pay your bills, and float the company’s bills PLUS 5% then you’re ill-prepared.
2. Thinking you are entitled to a day off. Maybe, just maybe, five years from the day you start your business you will be able to take a week off and go on vacation. Even then, you will be mentally tied to your company. But at least you will be mentally tied to it in a vacation spot. It cracks me up when I hear or read about new business owners who are on vacation or taking a day off. Why? Well, there will be plenty of time for days off when you can’t compete because you took too much time away from your company initially and you’re standing in the unemployment line. Either you are working like a dog or you’re failing. There is no in between.
Until next time,
Twyla N. Garrett
Hopefully, season entrepreneurs are still not making the following common mistakes.startups
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