Three common business mistakes and how to avoid them

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We’re already one third of the way through 2009 – are you where you want to be?

Many of us dream of quitting the corporate rat race and exchanging it for the freedom filled life of the self-employed. Or, you may be an accidental entrepreneur, plunged into the world of self-employment due to downsizing, layoff, or business closure.

This number grows every year. Most businesses in the United States and Canada are created as sole proprietorships – and it’s no surprise, for two reasons. One, because it’s relatively simple to do, and two, because we want to be independent and free in our newly staked territory.

There are common mistakes that many new entrepreneurs make when they are leaving the corporate world.

Number one – not taking the time to get clear about what you really want out of your new business.

Would you hop on a plane, without knowing where it was headed? This is the equivalent of failing to examine your business and personal goals.

Many small business owners just don’t take the time upfront to think about what they really want. They start from where they are at the moment and put one foot in front of the other, day after day. They pick up random clients and focus on getting their work done. Most are just relieved to have clients and to make enough to replace their previous income. So where do they end up? Often somewhere they don’t like, and don’t recognize.

The best defense against building a business that you’ll want to invest yourself in, is to make sure you know what you want.

Number two – not knowing who your ideal clients are and what you are selling to them.

Using the analogy of travel again, would you be persuaded to fly first class to a five-star resort on a tropical beach, if you have a phobia of flying and your budget is modest? Not likely.

But this disconnect is something that many business owners create with their potential customers. They do not carefully and deliberately decide the structure of the business enterprise. They don’t determine the services and prices they’re offering in a strategic way. They don’t choose a target market, or figure out what that market wants. They try to sell the five-star resort to the one-star customer.

What’s even worse, they often undercharge, so to the clients they attract haphazardly, they sell at a one-star price.

What ends up happening are business owners who feel very scattered and do not stand for anything in the marketplace.

Number three - not getting help soon enough.

Going it alone sounds great to ex-corporate, solo entrepreneur types, until they realize they not only have to get the clients and do the work, but take care of technical support, marketing, production and customer service. Many new entrepreneurs do not get help soon enough. A good rule of thumb – if someone else can do it faster, better, or cheaper than you, you should not be doing it yourself.

Today the availability of contract help is virtually infinite. There are independent professionals providing administrative and technical support, accounting, marketing and everything in between.

Besides paid help, other forms of support are also important. Finding networks, taking training, and getting some form of coaching are all ways to create support teams for entrepreneurs.

WANT TO USE THIS ARTICLE IN YOUR EZINE OR WEB SITE? You can, as long as you include this complete blurb with it: Sherri Garrity is the Chief Corporate Fugitive and creator of the Five Keys Success System^TM for ex-corporate employees and aspiring entrepreneurs who want to break free from the confines of their corporate experience and unlock their business potential for greater personal freedom and prosperity. The Corporate Fugitive system demystifies the business of setting up, managing, marketing and growing a successful entrepreneurial adventure. Visit www.corporatefugitive.com for free tips on how to unlock the business in you.

Feeling crazy on an ordinary day? How to get out of overwhelm and stay on track as your own boss

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I have a vivid memory of feeling frustrated in the employment world. It drove me crazy when it seemed there were no consequences for people not keeping their commitments, offloading work to others, and scattering when “it” hit the fan.

Being a very strategic person, I could never understand why my higher ups appeared to be willing to get caught up in fighting fires instead of preventing them.

One day, my supervisor saw this was causing me stress and pulled me aside and gave me a piece of advice. He said “Sherri, you can’t care more than the boss cares”.

That was over 15 years ago but his words have stuck. I knew he was just following the chain of command, and even though it bothered him too, he’d learned there was no point in trying to swim against the current. Instead of feeling frustrated, he resigned himself to play it safe and forego the headache.

That was one of many moments when I knew I just didn’t think like everyone else. I could not play it safe or turn the other cheek.

Fast forward to today, I am the boss, and I can set my standards just as high as I want. But dreaming of being the boss, and becoming one are two different things. I have had to learn to make decisions carefully and to care deeply but not lose objectivity in my business.

Participating in mastermind groups, working with coaches of different sorts and taking the time to reflect on what I want and where I am going have all been critical to keeping me on track.

Here are some tips for your peace of mind:

Bring your vision to life – there are two components to this – taking the time to define the vision and mission of your company, and bringing it to life. Take a look at the way you operate and communicate with clients and make sure that your actions are in sync with your vision.

Hold yourself accountable – this is really hard to do when you are the boss, but you need to set goals and performance standards for yourself, and monitor them. The key here is being realistic in raising the bar high enough to stretch you, but not so high as to be completely unrealistic. One trick that has worked for me is to set 90-day goals and to divide the steps I need to take into smaller weekly actions. The upfront planning takes a bit of time but keeps me focused and assured on a weekly basis.

Recognize your chinks – the biggest obstacle most of us face is our own mind. We all have issues of some kind, that’s a given. Don’t measure yourself against others. Just be honest about your own weaknesses. Tune in to them but don’t let them rule you. And if it’s skills you need, that’s easy, either learn them, or hire someone to do them for you.

Build carefully – wouldn’t you rather be a rainmaker than a firestarter? So many times we rush around and create disaster. If you’ve set realistic goals, and you stick to them, stay on the course and don’t second guess yourself. Make decisions based on your vision and what fits you. A big mistake many driven, corporate fugitives make is to chase every bright shiny object. This just doesn’t work in the long term. To make the rain fall, you need to create the right conditions.

Filter information – the biggest complaint I hear from other corporate fugitives in that they are totally overwhelmed at the need to keep up.  All the material in the world is no good to you unless you can do something with it. Focus on what you need to get done, weekly, monthly, and only actively focus your attention on that.

Stop comparing yourself to everyone else – one of the worst things you can do is try to keep up with what you think your standard should be, based on everyone else! This is especially true for the solo business owner following others on the internet. You will be quickly discouraged, if you are looking at the “overnight” successes out there.

I hope these strategies will help you stop the insanity!

WANT TO USE THIS ARTICLE IN YOUR EZINE OR WEB SITE? You can, as long as you include this complete blurb with it:  Sherri Garrity is the Chief Corporate Fugitive and creator of the Five Keys Success System^TM for ex-corporate employees and aspiring entrepreneurs who want to break free from the confines of their corporate experience and  unlock their business potential for greater  personal freedom and prosperity. The Corporate Fugitive system demystifies the business of setting up, managing, marketing and growing a successful entrepreneurial adventure. Visit www.corporatefugitive.com for free tips on how to unlock the business in you.

What’s in your money mirror?

Other than finding out what makes people tick, I think the next most fascinating topic is what people think about money. Have you noticed that we can rationalize any spending decision, when we want to?

In the last few weeks I’ve had the chance to speak to two money and marketing experts and fellow corporate fugitives as part of the Entrepreneurs Unplugged telesummit. Kendall Summerhawk on charging what you’re worth, and Kelly O’Neil on marketing to the affluent market.

The intriguing thing about money is that is it a true reflection of our most secret, personal beliefs and desires. Unfortunately some of these beliefs can be silent and deadly to our business lives.

The most obvious is when we undercharge for our services, or become doormats to our clients, because we feel beholden or dependent upon them for our financial security. Fear rules and objectivity and confidence go out the window. The client gets more than he or she should, as well as a piece of your soul! They are not buying you, so kick this habit to the curb and fast.

But some are more insidious. The most ironic example of this is our belief that we want to give value. We thrive on going the extra mile and above and beyond. Our clients love this and so they should. But what if the root of that issue is really about feeling the need to be valued, and that we have to “throw in” the extras to deserve or justify what we charge?

You may not even know that you do this! But start to pay attention, because it could be taking thousands of dollars out of your pocket every month.