7 mistakes that could destroy my business
Immediately I will write that this is a translation of the article by Neil Patel, it is called “7 mistakes that could destroy my business” and is based on his personal experience. There are no obvious things in it, but, nevertheless, once again pointing out possible mistakes is a good reason to help a large number of people avoid them.
So, "7 mistakes that could destroy my business."
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Over the past 6 years I have created 9 .com companies. Most of them fell apart and brought about a million dollars in losses. Fortunately, the success of several of them was able to cover my losses. The main reason for the large number of failures is that I made some really big mistakes. I hope you can avoid them.
There will be many opportunities in your life and a good reaction will allow you to start implementing them all, but you should not. I made this mistake and it ended up in that all my businesses suffered, even those that were successful in principle. Approximately 3-6 months, when I dispersed my efforts, had a detrimental effect on my projects, even considering that I had employees and business partners who helped. Remember, no matter how big your business is, you have to devote all your time to it.
It is important not only to register your business correctly, but also to choose the right type of organization. This may not seem very important when you are just starting out, but when a business starts making money, it can be a serious problem. For example, my accountant says that if a company brings up to $ 200,000 a year, a type C corporation is the best for your taxes. But if more, think about a type S corporation or a limited liability company.
iSpace : In the Russian reality, the situation is slightly different, in the coming days I will discuss this with my accountant and will post a separate update on this topic.
I discovered this when my company began to bring seven-digit annual profits and it was not of the type needed. This ended up paying taxes twice, first with profits and then with dividends.
I worked with several developers and engineers for 3 months and they came to me with a commercial offer. The first 3 months of working with these guys went great and I decided to listen to them. The offer was to make a revolution in the hosting industry, but as a result, they broke everything. After I listened to them, I gave them some money and bought a house in which they could live. Next, I invested 4-5-digit amounts every week.
As a result, they threw me at the money, stole the property of the company and destroyed the house I bought. No matter how well you know someone, be careful, because you will never know who can set you up. One idiotic mistake can cost thousands of dollars.
If you really want to develop your company, you will need employees. Most likely you will post a few vacancies or ask a few friends on the topic of whom they could advise. No matter where employees come from, check everyone as seriously as possible. If someone was recommended by friends, this does not mean that this is a good candidate. I made this mistake many times, hiring developers, designers and sales managers on the recommendations. If someone showed himself well in his past work, this does not mean that this person will work well for you.
If you are not strict enough with your subordinates, after a while they will work less efficiently. And if you, like me, often travel, they will start to engage in nonsense when you are not around. From the first day you have to be strict with them, not just to save employees from bad habits like doing nothing in the workplace.
The first few years, as an entrepreneur, I did not attract employees to any responsibility. Every time they promised me something, I believed. I was not a stooger to those who were late for 30 minutes and after some time this became their habit.
iSpace : As a manager, I agree with Neil - lateness is permissible only within reasonable limits. And this applies to 95% of employees. Another thing is that for some the working day may begin at a different time from others, but, nevertheless, it must be fixed, otherwise no teamwork will work.
In order to solve this problem, I started using software to record the time like Liquid Planner 'a (iSpace: for remote development, I advise Basecamp with Time Tracking connected, I will write about services and software for management, surely)
In conclusion, I began to take into account the hours of entry and departure. It showed who arrives on time and who does not. On the one hand, 30 minutes every day is nonsense, on the other it is 3 missed weeks in a year.
Making money may seem difficult, but getting it is even more difficult. In 2008, I worked for 8 companies that did not pay me anything. It was not ten dollars, a few companies still owe me over $ 100,000 ... sadly, but I don’t think they ever will pay.
Try to get paid before giving something. No matter how big the company is, it can go bankrupt. Contracts and bailiffs will not help you if the company has no money.
If someone still owes you money, remind him of it until you receive it. If you do not act as if you need this money - you will never be paid. But if you show that you have financial problems because of this, maybe someone will be ashamed and you will receive a cherished payment.
iSpace : Unfortunately, this is hardly applicable to Russian realities. We should be as detailed as possible on paper all relations with customers and partners.
Especially in your first company, you want everything to be perfect. In reality, problems will always be the ideal to achieve almost impossible. So instead of reaching the unattainable - just run your project before someone hits you in the back of your breath, launching an analogue earlier.
iSpace : Here I am more impressed with the 37signals approach - it’s better to give up unnecessary functionality and do little, but very high quality.
In my first company, I tried to reach the ideal, and as a result Google launched a competing product with which I could not compete, since the Google product was free, but mine was not.
No matter what, you will make mistakes. Even if I told you about everything that I did, you will make others. If you want to achieve success - you can not give up !!! Sooner or later you will succeed, but like everything worthwhile, it takes time.
Translation: Igor Debatur
So, "7 mistakes that could destroy my business."
')
Over the past 6 years I have created 9 .com companies. Most of them fell apart and brought about a million dollars in losses. Fortunately, the success of several of them was able to cover my losses. The main reason for the large number of failures is that I made some really big mistakes. I hope you can avoid them.
Do not spray
There will be many opportunities in your life and a good reaction will allow you to start implementing them all, but you should not. I made this mistake and it ended up in that all my businesses suffered, even those that were successful in principle. Approximately 3-6 months, when I dispersed my efforts, had a detrimental effect on my projects, even considering that I had employees and business partners who helped. Remember, no matter how big your business is, you have to devote all your time to it.
Choose the right type of organization
It is important not only to register your business correctly, but also to choose the right type of organization. This may not seem very important when you are just starting out, but when a business starts making money, it can be a serious problem. For example, my accountant says that if a company brings up to $ 200,000 a year, a type C corporation is the best for your taxes. But if more, think about a type S corporation or a limited liability company.
iSpace : In the Russian reality, the situation is slightly different, in the coming days I will discuss this with my accountant and will post a separate update on this topic.
I discovered this when my company began to bring seven-digit annual profits and it was not of the type needed. This ended up paying taxes twice, first with profits and then with dividends.
Trust but verify
I worked with several developers and engineers for 3 months and they came to me with a commercial offer. The first 3 months of working with these guys went great and I decided to listen to them. The offer was to make a revolution in the hosting industry, but as a result, they broke everything. After I listened to them, I gave them some money and bought a house in which they could live. Next, I invested 4-5-digit amounts every week.
As a result, they threw me at the money, stole the property of the company and destroyed the house I bought. No matter how well you know someone, be careful, because you will never know who can set you up. One idiotic mistake can cost thousands of dollars.
Be serious about hiring employees.
If you really want to develop your company, you will need employees. Most likely you will post a few vacancies or ask a few friends on the topic of whom they could advise. No matter where employees come from, check everyone as seriously as possible. If someone was recommended by friends, this does not mean that this is a good candidate. I made this mistake many times, hiring developers, designers and sales managers on the recommendations. If someone showed himself well in his past work, this does not mean that this person will work well for you.
Make employees accountable
If you are not strict enough with your subordinates, after a while they will work less efficiently. And if you, like me, often travel, they will start to engage in nonsense when you are not around. From the first day you have to be strict with them, not just to save employees from bad habits like doing nothing in the workplace.
The first few years, as an entrepreneur, I did not attract employees to any responsibility. Every time they promised me something, I believed. I was not a stooger to those who were late for 30 minutes and after some time this became their habit.
iSpace : As a manager, I agree with Neil - lateness is permissible only within reasonable limits. And this applies to 95% of employees. Another thing is that for some the working day may begin at a different time from others, but, nevertheless, it must be fixed, otherwise no teamwork will work.
In order to solve this problem, I started using software to record the time like Liquid Planner 'a (iSpace: for remote development, I advise Basecamp with Time Tracking connected, I will write about services and software for management, surely)
In conclusion, I began to take into account the hours of entry and departure. It showed who arrives on time and who does not. On the one hand, 30 minutes every day is nonsense, on the other it is 3 missed weeks in a year.
Get paid on time
Making money may seem difficult, but getting it is even more difficult. In 2008, I worked for 8 companies that did not pay me anything. It was not ten dollars, a few companies still owe me over $ 100,000 ... sadly, but I don’t think they ever will pay.
Try to get paid before giving something. No matter how big the company is, it can go bankrupt. Contracts and bailiffs will not help you if the company has no money.
If someone still owes you money, remind him of it until you receive it. If you do not act as if you need this money - you will never be paid. But if you show that you have financial problems because of this, maybe someone will be ashamed and you will receive a cherished payment.
iSpace : Unfortunately, this is hardly applicable to Russian realities. We should be as detailed as possible on paper all relations with customers and partners.
Time is not on your side
Especially in your first company, you want everything to be perfect. In reality, problems will always be the ideal to achieve almost impossible. So instead of reaching the unattainable - just run your project before someone hits you in the back of your breath, launching an analogue earlier.
iSpace : Here I am more impressed with the 37signals approach - it’s better to give up unnecessary functionality and do little, but very high quality.
In my first company, I tried to reach the ideal, and as a result Google launched a competing product with which I could not compete, since the Google product was free, but mine was not.
findings
No matter what, you will make mistakes. Even if I told you about everything that I did, you will make others. If you want to achieve success - you can not give up !!! Sooner or later you will succeed, but like everything worthwhile, it takes time.
Translation: Igor Debatur
Source: https://habr.com/ru/post/51651/
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