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 We all start out on the search for business success with a treasure map paved with good intentions and a backpack of hope that we will find the path to fortune and freedom. Here are ten common mistakes that stand in the way of making a successful journey.
#1 HEADING OUT WITHOUT A COMPASS AND A MAP
The most common error for any journey that ends up in disaster is the over-optimism that comes with a decision to head out into the unknown without a compass and a map of the terrain to be covered. Having an idea of where you want to get to with the business is certainly important to the chances of longer-term success but the time spent working on the business plan (your compass) and marketing plan (the map) is a recipe for disaster. It is essential to think through the SWOT journey to identify the true nature of threats and weaknesses and reinforce strengths that will be required to exploit opportunities.
#2 OVERCOMING THE SENSE OF ISOLATION
Moving out from the relative security of employment and the structured world of day-to-day business feels like a breath of fresh air after a forest fire until it is time to go out on your own, making cold calls and finding new prospects to keep the cash flow flowing.
Like an insurance salesrep who has run out of relatives and friends to approach, there comes the loneliness of the road to new business and the need to overcome the sense of isolation that can too easily turn into a history of debt and despair. Networking with others and close contact with suppliers is essential
#3 RIDING THE WRONG HORSE
Every time that the business has to promote its products and services beyond the home paddock where everyone knows what is on offer and has had a chance to compare their experience with competitive offers, it is necessary to choose a marketing vehicle that will reach out to a rich field of new customers. It is important to choose horses for the right courses and avoid show ponies that look good but do not have the long term staying power that builds a strong track record based on good preparation and training. It is vital to get references for key recruits, recommendations for new materials and evidence of success for new business partners.
#4 TOO LITTLE RESERVES IN THE SADDLE BAG
Business investment is inherently risky and there are never enough funds to do everything that could be done to expand. Most small and medium enterprise relies on personal savings and support from known friends and associates but this will never be sufficient for significant expansion. Avoiding early over commitment and later under-investment for expansion are equally important to make sure that there is a steady course towards known outcomes.
#5 GETTING TOO BIG FOR ONES BOOTS
Early success is the most common cause of failure for many small and medium enterprises that arte afforded large increases in both liquidity and bank loans as people get to hear the good news and start to place initial orders. Spending too much and then having too little set aside for business development is often a sign of getting too big for one’s boots and throwing caution to the wind. Turning down unrequired lines of credit and taking measured steps towards new product development could prove a lifesaver.
#6 TAKING THE WRONG TURN IN THE ROAD
As the business grows and gets beyond its adolescent years, it is necessary to select new partners, employees and new business opportunities that require a mixture of sound judgement, good market intelligence and trust in your own intuition. Unless time and effort are given to discussion with advisors and people with extensive experience, there is a tendency to lose focus on the keys to success and open up unrelated lines of development.
#7 CHOOSING THE WRONG TOOLS OF TRADE
In the early stages of most business there is a heavy reliance on personal resources and relationships, existing equipment and proven tools of trade. As the business matures it often fails to set aside funds for renewal and redundancy and under invests in new technology, infrastructure replacement and new premises. This limit to growth leads to loss of competitiveness and a tendency to harvest before the business can afford to carry these costs.
#8 CHANGING ONES MIND
Having a huge share of a declining business can often lead to intellectual blindness to the obvious need to find new ways of doing business, new products and services and new avenues for growth and development. Failure to shirt with changes in the market and in technology often leads to internal conflicts and opposition to reinvestment in a mature business. Revitalising a successful business takes courage and early commitment.
#9 LOSING SIGHT OF THE HOME TRACK
The most common business success is the loss of focus that comes with familiarity with the way things are done round here (the culture of complacency) and the failure to maintain strong links with existing customers, listen to their changing patterns of expectations and remain customer centred rather than letting the needs of the business over-ride the reasons for success. Nothing leads to a business collapse faster than people feeling that they have lost the respect that underpins the brand value.
#10 GIVING THE GAME AWAY
As soon as the company has grown sufficiently to take on more employees and signs on more contracts it has to establish its exit path or its plans for the future control and management of the business. Many home-based businesses fail to plan for becoming a family business beyond the sole trader stage and many family businesses founder on the conflict between the founders and the next generation. Knowing when to give the management game away and taking a position of business leadership is a key to victory over tendencies to handle succession planning and growth
Mistakes are there to point the path to success provided that they are not repeated and the lessons of the past are not passed over,

 CONTACT: Dr Colin Benjamin, Marshall Place Associates

Marshall Place Associates offers a range of strategic thinking tools that open up a universe of new possibilities for individuals and organisations committed to applying the processes of innovation, creativity and entrepreneurship.
CONTACT
Dr Jane Shelton
Chief Executive Officer,
Marshall Place Associates
Level 15, 461 Bourke Street
Melbourne 3000
Ph: +61 3 96400099 Fx: +61 3 9640 0009
Email: contact@marshallplace.com.au