***Avoid the Mistakes that Sink Start-Ups

A student in our Entrepreneurship Mastery Program is a smart and courageous woman. Ten years ago she started a business that failed after four years. Now she is with us, acquiring the knowledge she needs to be successful the second time around.

Just a few hours into the course, she learned an important lesson. “Even though my business lasted four years,” she says, “I made mistakes that killed it before I even opened my doors.”

The right kind of planning during the earliest stages can make or break a business. This morning I’d like to lay bare some of the mistakes that kill new businesses fast.

• Mistake #1: Failing to secure the funding that lets you start your business the right way. It is scary to borrow money. And equally scary to throw your lot in with venture capitalists who will be all over you at the first sign of trouble. But the fact remains, starting an undercapitalized business is a recipe for failure. You have to know what you are doing, which takes us to Mistake #2 . . .
• Mistake #2: Letting your business plan be an afterthought. Remember, a business plan is much more than a document that you file with a loan application. It is a tool you use to help develop your business idea. It lets you analyze and understand how much start-up capital you need. It helps you estimate cash flow and develop a realistic plan for your first years in business. (By the way, Trump University’s Entrepreneurship Mastery Program offers one of the best business plan “boot camps” available anywhere.)
• Mistake #3: Letting your marketing be an afterthought. Too many entrepreneurs get so embroiled in developing a product or designing a store that they don’t talk to their customers. Fortunately, Donald Sexton PhD, head of Trump University’s marketing programs, won’t let us forget that the customer must be any company’s main consideration from day one.
• Mistake #4: Pairing with the wrong partner. Some entrepreneurs who are short of cash take on partners with “deep pockets.” That is often a recipe for disaster. Others partner with friends who don’t bring much to the table as potential business partners. Unless you and a partner possess complementary assets that will make the business run better, you will be better off on your own.
• Mistake #5: Overspending before cash flow and profit kick in. Avoid the trap of spending money early for things you will only need later on. Don’t buy an expensive computer network if you can get started with a few desktop PCs. Don’t hire a receptionist if you can start out with a voicemail system. Consider an office share or a virtual office as an option to minimize expenses.
• Mistake #6: Failing to consider the option of buying a business instead of starting one. When you buy an existing business, you can look at its books to see how well it is doing. You start out with customers, employees and expensive equipment already in place. Check out Trump University’s groundbreaking course, The Art of Buying a Business to learn more.
• Mistake #7: Going too cheap on your Internet presence. These days, an inexpensive Website can look as good as an expensive one. A shabby Internet presence can kill your image fast.
• Mistake #8: Glossing over your areas of ignorance. We all have them. Some of us have big ideas, but are poor at planning. Some of us are great with people, but cannot crunch numbers. Trump University was created to address problems just like those, by helping people target their weak areas quickly and efficiently.

Trump University’s Entrepreneurship Mastery Program is the ideal place to learn the skills you need to get it right the first time. Check it out, because the time to get involved is today.