Over the last few weeks MeetTheElite polled some of its members. The goal was to find out some mistakes they made when starting their companies. Feel free to comment and share your experiences.1. Doing Business with Family - I made the mistake of partnering with a member of my family. Not always a good idea! And being a newbie at business, I didn’t understand the value of outlining roles and responsibilities to the tee, to make sure if someone’s not pulling their weight, there’s something to refer to IN WRITING. I have since learned the error of my ways and found a different partner, and we’ve documented everything in detail!
-Sarah Blenston, Blenston Law
2. A Direct Mail Blunder - I bought a direct mail list for $5k without doing major research on the company, also purchased 10,000 postcards, and paid for bulk mail postage. Mailed out the first 5000 postcards and did not receive any inquiries, ouch.
-David L Wright, President, Benefits For You
3. No Separation Agreement - Three of us went into business together and formed an LLC. However, when creative differences caused us to go our separate ways the lawyers made out to the tune of over six figures between us. And, friendships were ruined! Always have a prenuptial for the unexpected.
-Larry Girardi, Founder, Girardi Benefits
4. Trying To Do Everything - I tried to do everything myself instead of hiring help. For example: I wrote features, did the sales, updated the mailing list, did the bookkeeping, updated the website, etc. I was spread too thin and wasn’t doing any of it well. It would have been worth the money it cost to hire help in order to have the extra time to meet my publishing deadlines.
-Roger Martin, Martin Insurance
5. Too Much Office Space - I made the mistake of getting more office space than I really needed.It cost me too much money, which of course came from my pocket. I was way too caught up in the ego of having a nice space. These days, I am into virtual businesses and telecommuting–why waste money on rent?
-Kathryn Weston, President, Weston Financial
(Click "Comments" to share your experiences)
3 comments:
My biggest mistake was designing the firms website. It started out as a simple idea, but then i got carried away with the amount of information i had on it. In the end it was impossible to keep up to date and very hard for my clients to find what they needed.
I agree with the don't work with family members post. It only leads to hard feelings and poor results.
Having an operating agreement or a shareholders agreement is critical in any company where there is more than one owner. I have represented many business owners who are in disputes with their partners and the costs are significantly increased by not having an agreement among the owners.
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