Common Startup Mistakes

This week we were asked to read an article titled Richard Branson on How to Avoid Common Startup Mistakes. Richard Branson is a very successful businessman and investor who is well known for being the founder of Virgin. In the article, Richard Branson listed four of the most common mistakes that new entrepreneurs make. These mistakes include not staying on target, not being realistic about the costs of starting the business, hiring people you like rather than people you need, and not knowing when to say goodbye to the company as CEO. Out of all of the mistakes that entrepreneurs make I found it really interesting that he mentioned those four. I liked the advice that he gave regarding being realistic about the start-up costs. He said that it is important to keep expenses as low as possible, but that doesn’t mean that you should undercapitalize your business. Branson said, “The playing field is littered with undercapitalized start-ups that were doomed from the outset.” This is something that I want to keep in mind when I start my photography business. It is important to make sure that I am realistic in estimating what the true cost will be of getting things up and running, and to not shy away from trying to obtain that money. I also liked his advice about making sure to hire people that are smart and know the industry, rather than just hiring friends or family members because you enjoy spending time with them. It is important to surround yourself with smart people that have business know how and who will be able to help your company see long-term success.

$100 Challenge Update

This week I finalized my idea for the $100.00 business challenge. I have decided to go with creating a homemade hot chocolate company called Carolyn’s Cocoa. I also worked on creating a business plan to help guide me over the next several weeks. In the business plan I included a vision statement, mission statement, objectives, strategies, and plans for the company.