Summary of Mistakes People Make in Starting a Business

So I just wanted to write a quick summary of some common mistakes people make in starting a business to avoid:

1) Start the business based on the line of thinking that since they know how to do the technical work of a profession, that they know how to run a business that does that technical work. For example, the hair stylist who starts their own hair salon, the chef who starts their own restaurant, the car mechanic that starts their own repair shop, etc...knowing how to do the technical work of a profession doesn't mean you know anything about operating a business that does that technical work. You might be a fantastic chef, that doesn't mean you know anything about operating a restaurant!

2) Start the business without understanding the need to create and build business systems to automate the processes of the business. This is what leads to many people who start businesses becoming chained to their business, having essentially bought themselves a job instead of creating freedom for themselves. The business thus detracts from their life as opposed to adding to it. The business will need systems so as to make it where it can operate and function without the owner being present at it all the time, and if the owner does need to be present, they can work ON the business as opposed to working IN the business. The systems make sure that the quality of the service provided is not dependent on the whims of the employees, as they follow the rules of the systems established. This makes sure the accounting, the financials, the greeting and treatment of customers, the washing of the dishes, etc...whatever, is done properly, where customers get the same experience irregardless of who is employed.

3) Starting a business based off of the thinking, "What business can I start that will make me rich?" This is terrible thinking for starting a business. Something always important to remember is that the world is made up of billions of people, and all of them have all sorts of problems in their own lives. Most people do not want to hear about other people's problems. Take your own life. You probably have a slew of problems, along with dreams and goals of your own. Think random people you pass on the street want to hear about them all, or even care? Ha! Nope. Nobody cares about your desire to become rich or to do this or do that, or see this or that, or visit this place or that place. Nobody cares about your sick grandma in the nursing home or your father developing Alzheimer's or your credit card debt problems, etc... (well okay, maybe some might, but I'm talking about the general population) as most people have problems of their own.

BUT...what people DO care about is, what is it that you can do to help solve their own problems? What can you do to make their own lives easier? Find ways to do this, and offer it as a product or service that is of excellent quality and priced reasonably well, something that satisfies a real need for people, and people will come to you in droves.

So as opposed to thinking, "What business can I start that will make me rich," seek to fill needs, solve problems, make things easier for people, streamline systems better than competitors, and if someone else is doing something, see if you can do it better/faster/cheaper.

Now of course, not all businesses are about solving needs, sometimes a product/service is just something people want because they like it (an extreme example, Beanie Babies, which gave their founder a $4 billion (yes that billion, with a "b") net worth. If you are lucky enough to create such a good/service, GREAT, but the chances of coming up with such a thing can be very slim. One can find success here though, for example, the Snuggie, the "blanker with sleeves" (BASICALLY A ROBE YOU WEAR BACKWARDS!).