The Ten Deceptive "Don’ts"
By Ray Smilor, Beyster Institute Executive Director

Entrepreneurs face all kinds of temptations in building their companies. It’s easy to get sidetracked and fall into traps that can derail a promising enterprise. To avoid some of the pitfalls of starting and running a business, here are my suggestions of things not to do.

Don’t assume, do some research. Having some solid numbers about the market makes a world of difference insuring success. Find out not just the size of the overall market, but also what your segment or niche of that market realistically could be.

Don’t ignore, talk to customers. There are too many entrepreneurs who never really talk to their customers to discover their real issues and concerns, or to address their complaints. If you talk personally and directly with your own customers, you’ll learn a lot about how to meet and exceed their needs and expectations.

Don’t shake hands, make it legal. Many a partnership has ended in disaster because friends just shook hands and believed that they would be able to resolve any and all issues. But business is unpredictable, and differences inevitably arise. Put agreements, whether with partners, suppliers or customers, in writing.

Don’t forecast, watch the cash. It’s amazing to me to read business plans and see that all companies forecast success!  Future numbers are always “conservative” and always extremely positive. But companies exist in the here and now. Cash determines whether a business succeeds or fails, so make sure the cash flows!

Don’t hire in haste, hire right. The urgency of work forces too many of us to hire the wrong person simply to fill the position. Finding the right person takes time and effort. Fight the urge to hire quick, and instead look for that perfect fit … he or she is really out there.

Don’t be soft, be accountable. Being an effective CEO means being accountable. Trying to be nice all the time or trying to be liked all the time leads to indecision and confusion in organizations. Doing the right thing means that you can’t please everyone.

Don’t be alone, build networks. Successful entrepreneurs are successful network builders. Interesting networks make us luckier individuals. The more diverse and heterogeneous our web of relationships, the more we have access to wider resources and to problem solvers.

Don’t get greedy, take the money. Be careful of inflated expectations of the value of your company. As you plan your exit, get a realistic valuation and understand what you need to do to build that value. Then when it comes time to cash out, keep your ego in check and look for that win-win deal.

Don’t hide, admit mistakes. When you make a mistake — and we all do — admit it, learn from it, and move on. The worst thing to do is to pass the buck. Trustworthiness starts with acknowledging our own errors.

Don’t be down, be up. Optimism is a powerful resource in organizations. No one follows a pessimist, at least not for very long. In the midst of difficulties, we can start to feel down. It’s important to be realistic, but more important to demonstrate faith in the future.

So be aware of these ten “don’ts.”  Doing so can keep you and your company on the right track.

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