10 small business pitfalls

Filed in archive Bootstrapper Tips on January 4, 2007

Welcome back to BootStrapMe.com after a brief and partially unintended hiatus over New Year.

Let's start 2007 with a great list of things to avoid when bootstrapping a small business from entrepreneur Pelle Braendgaard at Stake Ventures.

Notice how many of them come close to things regular readers of this blog have run across before. (Particularly check out #'s 3 and 8 and compare them to my Lesson # 11 for 2006.)

Pelle's pitfalls include:

1. Bootstrapping a business vs playing a business

Compare this one and observations about the dangers of delusion in start-up by bootstrap entrepreneur Greg Gianforte

2. Solo techsupportitis

This could be viewed as sort of a techie's take on # 1.

3. The evils of business plans

I ought to have this one tattooed on my forehead. Business plans are pages and pages put together for your SBA rep and no one else. I've written about this strange mass delusion here and here .

4. Funding by plastic

Just remember, as in your day-to-day life, you'll eventually have to pay it all back.

5. Believe you will succeed but don't let optimism blind you

Check out my post "Keep your day job"

6. The Snowblind solopreneur

Probably the best argument for the blog as a business plan approach.

7. Searching for the team

Entrepreneurs are fascinated with this. My feeling? It's like employees. Hire someone or bring on a business partner only when it makes logical sense or you just haven't got any choice.

8. Focusing on an imaginary 3 year revenue goal

If I never write another three year projection it will be much too soon.

9. Using we when you should be using I

Pelle argues the need to be honest and proud of your smallness

10. Talking legalese in User Agreements

Most significant when talking bout software developers

Can you think of anything to add to this? I'm thinking about it too for a possible future post.