10 mistakes a new entrepreneur makes (Barbara Poole)

1. Getting into the business for the wrong reasons - Many people decide to start a business because they have become disillusioned with their current job or have lost their position due to a layoff or termination. While the entrepreneurial route is certainly one option to consider, it is often a reaction to what has felt like a negative situation, i.e., “If I start my own thing, no one can fire me!” There are a host of other factors to consider before starting your own business. Do due diligence before you leap into the deep end.

2. Quitting your day job too soon - Starting a business can be expensive, and it is rarely profitable in the beginning. Don’t cut off your source of income until you have yourself established with a game plan for a new one.

3. Postponing incorporation - It’s tempting to simply set up shop as a sole proprietor because it’s easy, but it’s also risky. All of your personal assets are at risk and there is no line of demarcation between you and your enterprise. Invest the time and resources necessary to create a business structure that stands separate and on its own

4. Thinking you can do it all yourself - When you work for an established organization in a “regular” job, you typically have a defined role with a limited scope. People setting up a new business are often tempted to try to do it all in order to cut costs and save time. Do the things you do well and hire out the rest.

5. Not having a well-defined target market - Make sure you are clear about who you will serve and how, or else you may end up serving no one.

6. Over-promising - In starting a business, many people are so eager to find customers that they create expectations that are impossible to fulfill. Make sure you are setting expectations that you can actually deliver.

7. Emphasizing packaging over substance - There’s something exciting about getting your first set of business cards and taking a Web site live for the first time that is exhilarating. On the other hand, many people invest big dollars on things that are just not necessary in the beginning. Consider where you want to invest your resources before mounting a glitz campaign that may be more than you need.

8. Working in the business instead of on the business - Many new business owners get so knee-deep in delivering products or services that they neglect to set up the management structures and systems that are necessary for sustaining a business. Take the time to create the container in which your products and services will reside and then manage that structure.

9. Incurring too much debt - It can be tricky to determine what constitutes a reasonable debt load in a new business. But it is important to have some personal answers. What is your own risk tolerance? How much debt can you take on before you begin losing sleep at night? How much (if any) of your own funds are you able or willing to use to seed the business? It will be hard for your new enterprise to flourish if you are overwhelmed by money worries.

Letting the business consume your life - One of the best reasons for becoming an entrepreneur is to add to your quality of life. Don’t allow the business that you worked so hard to establish to leech into your personal life. Build strong boundaries that will enable you to have a life that isn’t just about your work; both you and your business will be better served.