Avoiding mistakes by making good decisions

Do you have a great idea and just know it is going to work?Unfortunately the majority of small businesses fail quickly. This comes from a variety of reasons, but mostly falls under the umbrella of being ill-prepared and making poor choices. More times than not poor choices come from not knowing.

The best way to protect yourself is to make sure you take the time to do your research.Network with individuals and find out what is going on. Things you considered yourself an expert on several years ago may have all changed from what you knew.Let's take a look at some of the most common mistakes start up businesses have in hopes to help educate you on what NOT to do.

1. No business plan. Without one you never know which direction your business may end up. Most commonly it is upside down.
2. Selling a product too cheap. Most business owners think of vast numbers of sales and don't think about the profit for a single item. Make sure to do a good cost-analysis and start thinking small. If numbers soar, the better off you'll be.
3. Being clueless about marketing. You may know how to build it, but if you can't convince people to buy it - it won't make you any money. Either find someone who is an expert or do your homework.Bad publicity kills any good idea.
4. Blowing your capital. Create a budget and stick to it. Make sure you have plenty of money in reserve in case of an emergency. You can ease into your business if necessary.Start small and expand as things become more successful. Find ways of obtaining capital with minimal impact to your business.
5. Being a pal instead of a boss. It's far too easy to try to befriend the people we work with, but in order to make your business a success people have to view you as the BOSS. It doesn't mean you can create relationships that promote unity and positive culture.
6. Living the job. Start up businesses require a lot of time, but don't forget you have a family too. Balance is key to keeping you from burning out and driving your loved ones away because you are never there.
7. Survival. Most people don't stop to think about how competitive the marketplace truly is. You have to constantly battle for survival in it.
8. Losing speed. Most business owners start off with lots of energy, but after a few months and meager results the momentum dies and the business falters.
9. Doing it all yourself.This is a sure way to ensure failure.Find help.There are plenty of people out there that have the skills you need.
10. Doing it just for Money!!! If this is your only motivation for starting a business, you might as well not start! You need to have some passion and like for what you are creating. Otherwise you won't like your business any more than liking a desk job.
11. Building around a customer. Most people think that if they create something customers will suddenly want what they've built. The best approach is to find customers that have a problem and build the solution to a problem that already exists.Not the other way around.
12. Don't seek mentors or get involved in the community. This is a big mistake. Get all the help you can. Be visible in the community. People who tie you to a community minded business end up being more successful.
13. Selling to the wrong people. Make sure you know who your target audience is. Do your research.
14. Spending too much or too little.
15. Going against your intuition. Many business deals are made solely on a gut-feeling. It's smart to get some data to help back you up, but if you feel shaky about a certain vendor or sales person. Say no. It's okay. Your intuition is there for a reason.