The Seven Deadly Sins When Starting a Business.

Apparently there are millions of people out there thinking about starting a small business. Many doing so for the first time, losing your house or pension should not be part of this experience.

Here are some things not to do when you start a new business venture:

1. Don’t spend money if you don’t have too.

Think about what you need to start your business. You’ll have many items in your house already, like a computer, ADSL/DSL broadband, desk or even an office. Get free software, like openoffice.org for your word-processing, etc. – get bundles of services, not single applications – it’s often much less expensive.

2. Don’t pay for business ideas.

There are many free business ideas online, just google for them. Don’t spend you money on paying someone else to give you an idea, that may or may not work.

3. Don’t pay big bucks on marketing or PR.

Do you own PR and marketing online, get your website and online shop setup. Join twitter, facebook, linkedin and write a blog to promote your products & services. Go to local business networking events or talk to your local paper and give an interview – it”s all free.

4. Don’t pay, barter.

Whatever it is you do, you can use bartering techniques to get things or services you need – cash is king – so keep it.

5. Don’t hire, use a virtual assistant.

Hiring people is a big responsibility, don”t burden yourself and your new business with unnecessary fixed costs – outsource and timeshare professional virtual assistants. Make sure you get value for your money, not all VAs are the same.

6. Don’t buy, rent, lease, borrow or subscribe.

Again, “Cash is King” – keeping the money for as long as possible, is the name of the game. There are good finance deals out there – people are willing to make a deal in a recession – use that to your advantage.

7. Don’t borrow from banks, get equity from friends, family or business angels.

Banks are stripped of cash, they need to show profits and reserves on their balance sheets – they will see you as a risk, and that is best case. In other words if they give you any money, it will be very expensive money – don’t do it. Find friends or family to go into business with you, get an angel investor, he/she will not only give money but experience & contacts to get your business of the ground.

Business bootstrapping, there are always alternatives, you just need to think and find them. – ST.

4 Responses to “ The Seven Deadly Sins When Starting a Business. ”

1. Carry Spring
   
   Said on September 17th, 2009 at 10:34 pm

   I bartered at the beginning of my freelance career to get some projects to build my portfolio. I think it works out really well when you find the suitable organization for that. I’m bartering my services with http://barterquest.com.
   It’s free and saves a lot of money. Thanks for the article!

2. Stefan Töpfer
   
   Said on September 17th, 2009 at 11:07 pm

   Hi Carry,

   Great to hear from you and for your link – I’ll have a look.

   Looks like you are still bartering, how long have you been in business?

   VB, Stefan

3. Annuity
   
   Said on September 18th, 2009 at 2:06 pm

   Hi Stefan,

   I already use a method you have mentioned. I run a small business and employ a VA. The truth is you can’t deny the money we save from that. I feel VA’s are boon to small business.

   Thanks,
   Steve

4. Women Entrepreneurs Blog Carnival | She Takes on the World
   
   Said on September 19th, 2009 at 9:29 pm

   [...] Töpfer presents 100 Small & Home Business Start-Up Tips For Entrepreneurs posted at Winweb and The Seven Deadly Sins When Starting a Business posted at The Small Business Blog. These two posts contain many important pieces of advice for [...]

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