2. Mistake 1: Did not research the business for viability – BIG mistake 9 out of 10 fail because the concept is not viable We never plan to fail, we simply FAIL TO PLAN The three big lies; LACK OF CAPITAL WRONG PEOPLE BAD ECONOMIC CLIMATE

3. Mistake 2: Did not know market size, timing, ease of entry Don’t fall in love with the product Pumped up financials Business model failure Mistake 3: Underestimating financial requirements Test “WHAT IF” Fail on 1 and you overspend Massive overhead sinks ships No mon – no fun – your son!

4. Mistake 4: Underestimate costs To impress investors Murphy’s 3 rd law Profit Margin is not the only thing IT IS EVERYTHING! A Profit Margin is Revenue less variable costs Knowing PM is key to knowing Break-even Mistake 5: Hiring too many people, rent and overhead Lower Sales higher costs = Failure These are the things that you see every day in companies First mistake again, failed or no research

5. Mistake 6: No contingency plans Things that don’t go as planned – Murphy again What do you so if a shipping strike occurs? Shit happens, be prepared Wish it or Think it? Always have a backup – Plan B Mistake 7: Wrong partners – non strategic Bringing all your friends as partners Giving away too much to wrong partners Unnecessary and a huge mistake Stockholders should warrant shares or earn them

6. Mistake 8: Hiring for skill only Not just relatives and friends Wrong jungle It's hard to fire people, specially friends and relatives Handpick people based on skills Super-skilled people who can multi-task Wrong people, business dies Mistake 9: Neglecting to manage the whole company Took your eye the big picture Effort must equal results Be a 1 Minute Manager Losing perspective Micro management Stay on target by setting and following goals

7. Mistake 10: Accepting mediocre performance Can't do it that way.” It’s never too easy Entrepreneurs break new ground, accept it Stop listening to the nay sayers! Can’t means “you never tried”. Mistake 11: Focusing on sales rather than Profit Don’t manage volume or size You hire more people and more overhead then needed Too much focus on fast and big, rather Profit Bankers and investors won't like this Lack focus on becoming good business people

8. Mistake 12: Seeking confirmation of your actions rather than truth If you talk to everyone you want confirmation not truth Looking for somebody to tell you you're right The truth always comes out Failure to test products and prices in different markets Failure to listen to people and numbers Failure to value to the truth Mistake 13: Lacking simplicity – K.I.S.S. Lacking a valid U.S.P Testing for opportunity - F.A.N.A.F.I.? Going in too many directions at once Trying to do too many things at one time The MAIN thing is to make the Main thing the Main thing Failure to get business running first before expanding

9. Mistake 14: Lacking clarity of your long-term aim and purpose Failure to aim at the target Failure to ask 4 questions; 1: What is the problem to which you are the solution? 2: Who has the problem? 3: What is the Solution? 4: Can I made the solution in a cost effective way Mistake 15: Lacking focus of the opportunity Failing to see the company as a Product Going after too many targets at once Failing to maintain an identity Being everything to everybody Failing to see focus as power

10. Mistake 16: Failure to develop an exit strategy Focusing only on short-term profits Failure to keep the options open to sell Lack of focus on People and Product (Jobs quote) Mistake 17: Mistake 17: Too much inventory carrying costs Compromising Cash Flow decision Chasing being cool Too many excuses Focusing on what it cost versus what it brings Failing to only from strength