Among the many urban legends about starting a business is the one about writing a business plan on a napkin. Its success is comparable only to that of starting a business in a family garage.
However, things don't work that way. No one can guarantee that a business plan will definitely work—knowing that would be like knowing the winning lottery numbers in advance—but you can find a number of recurring flaws that guarantee it WON'T work.
Therefore, the help of a mentor in starting a business will not guarantee success, but it will ensure that you do not fall into known mistakes, sometimes due to mere ignorance and other times due to being blinded by enthusiasm for the project.
After helping in the preparation of many business plans and in the subsequent analysis, sometimes post-mortemFrom many others, I compiled a set of common mistakes that are perfectly avoidable and which I reproduce here:
1. Not having an estimate of the sales figure:
Anyone could say that until we start, there's no way to know; however, we're going to put all the necessary resources into action to be able to handle a certain volume of operations. If we don't have that estimate, where do we begin? A word of reassurance: A well-planned project should be able to withstand a 100% upward or 50% downward error without collapsing. The point at which the [the target] is reached would change. breakeven But, if basic precautions have been taken in the investment policy, it should hold up.
2. Not knowing why a company is failing:
A company, especially an SME, will not go under because the ROI, NPV or IRR values are lower than expected, nor because, after analyzing Porter's five forces model, we find an unfavorable configuration: It will go under because one day they will open the cash drawer and there is nothing with which to pay the electricity bill or the payroll.
3. Not considering the period of "journey through the desert":
When a company is launched, there is a period of time before it reaches full operational capacity during which money is spent but not received. When calculating financing needs, it is essential to include the amount required to keep the company afloat until it can become self-sustaining through its own profits.
4. Obtain grants for start-up:
In many cases, grants have a discretionary component, but even when they don't, entrepreneurs can still encounter liquidity crises and government payment delays. It's best not to start a business if the grant is needed to cover monthly payroll.
5. Do not separate the status of partner from the status of employee of the company:
It's very common for two partners to each own 50% of a business, while three partners might each own a third, and so on. Up to this point, the problem isn't serious; the problem arises when all the partners assign themselves equal salaries and insist on being "equal" in everything. Inevitably, one partner will feel they are contributing more and want that to be reflected financially by the others. The solution: As partners, compensation should be based on their share; as employees, compensation should be based on their work. Mixing the two is a surefire recipe for conflict.
6. Lack of realism in the deadlines:
When launching a business requires preliminary steps such as construction, installations, software development, or other activities, it's very common for deadlines to extend far beyond estimates, with a consequent impact on cash flow. Solution: Realistic deadlines and penalties for non-compliance.
7. Failure to adequately assess the necessary technical capabilities:
Sometimes you might need a highly qualified specialist but not have enough money to pay them and have to settle for someone who doesn't fit the profile. Solution: Find the right person and, what you can't pay for in cash, offer it as equity in the company.
8. Failure to adequately assess management capabilities:
The "management" aspect is far less transparent than the technical skills section and involves a range of interpersonal skills, the ability to assess the overall situation, and the coordination of diverse resources. It is precisely this vague nature that often leads entrepreneurs to overlook this point, especially when they need to conduct a self-assessment. Solution: Ask yourself if your past experience qualifies you in any way for this new venture, why, and even what aspects of that experience you need to unlearn as soon as possible.
One was missing then, but perhaps, as time has passed, it has gained strength: the Midas touch syndrome. It especially affects young tech professionals and consists of the belief that a mobile or tablet app, or the provision of services through a website, will open the doors to fame and fortune. In most cases, the overflowing enthusiasm deflates with a single question: What do you have that can't be easily copied at no cost?
Neither enthusiasm nor despair are good advisors when starting a new business. mentoring In the creation of new businesses, it provides precisely what may be lacking: common sense and experience. Mistakes teach invaluable but extremely expensive lessons. If we can at least avoid those most likely to be made, then having dispassionate and expert support will have been worthwhile.
EPUNTO It has designed a specific product, startup mentoring, which, together with extremely flexible hiring options, allows it to adapt to the needs of any startup, regardless of its investment capabilities.
