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Starting a lawn care business. How to start a lawn mowing business, lawn care business, or landscaping business. If you are starting a lawn care business, ask your questions here.

Top Five Pitfalls Every New Business

Starting a lawn care business.

How to start a lawn mowing business, lawn care business, or landscaping business. If you are starting a lawn care business, ask your questions here.
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Old 12-01-2006, 08:26 AM
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This is some great stuff. How many small business owners fail at #5. How many do you know that can't take a vacation without worrying their business will collapse without them?

Do you ever find that to be the case?

Top Five Pitfalls Every New Business Needs to Avoid


Financial guru Robert Kiyosaki sums it up when he relates McDonald's to hamburgers. McDonald's isn't a billion-dollar business because it has the best burgers - it's the system that has enabled the company to become the largest restaurant in the world. Organizing manuals, procedures, employee handbooks, bookkeeping, marketing, customer service - that doesn't happen overnight - but it's critical to turn all the unknowns into a consistent, functioning system. The point of starting your own business isn't so you can work like an indentured servant for the rest of your life. Create a superstar team, delegate the work, and for God's sake, learn to pass on the reigns. Consider the business successful when you can walk away and it doesn't burst into flames without you.


Are there faster ways to do things? Of course. But when it comes to rising up in the business world, don't even kid yourself. When we first opened the car wash, trying to juggle work, school and a social life made 100-hour work weeks the standard protocol. Ironically, as much as the world admires ambitious entrepreneurs who start businesses out of their garages, people who work "too hard" are often frowned upon. We're accused of letting our lives pass us by, and in some ways, that might be true. But in reality, all we're concerned about is reaching financial freedom while we're still young and healthy. Bottom line: There are no shortcuts. Do your homework, work hard and work some more.


Ask bestselling author Eliyahu Goldratt what the goal of any company should be and he'll tell you it's one simple thing: "To make money." It may seem blunt, perhaps even callous at first, but if it's not guiding your business, then surviving in the long run would be near impossible. Most new business owners fail to control their spending. Start-up costs may be high, but you've got to keep your thumb over that erratic financial pulse. Focus your energy and resources only on the activities that count. Spend your money wisely.


Don't fool yourself into thinking you can survive the first year with a small nest egg or your father-in-law's wallet. Before we owned the car washes, all of us invested heavily in the Arizona real estate market prior to the big boom. Property values soared at astronomical rates and enabled us to borrow against the existing equity. It was a good thing, too, because our early spending was out of control. In fact, our original budget miraculously doubled for no apparent reason (or so we say). Not only did the power of leverage keep us afloat during this highly uncertain phase of ownership, but we didn't go stir crazy wondering if we'd be able to pay our water bill. Whether it's a line of credit against your primary residence or a small business loan from a bank, make sure that cash is readily available.


If there's one lesson we've all learned from owning a business, it's this: Don't take it personally. This thing is your business, not your baby, and anyone who tells you different will burn out by age 30. Vendors will screw you over. Customers might spit in your face. But sometimes, there's just nothing you can do about it. Have you ever seen the formula "Observation + Reaction = Outcome"? I can guarantee you right now that unexpected nightmares will inevitably occur, but it's your reaction to them that counts. You can't control everything, but you can mitigate the impact by reacting quickly and intelligently. Expect the worst, hope for the best, and above all, don't let things get to you.
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