Wednesday, July 09, 2008

"8 mistakes entrepreneurs make" by Lynn Yap

1) They usually lack a plan – so it is very easy for them to lose focus and change business strategy. this can stem from the boss always changing his mind. An example: today, he gives one instruction and tomorrow he changes his mind or even failing to be a good leader because staff gets confused. A good plan is a plan for 10 years then review the plan again every 2 years and update the plan and stick to the plan so that staff knows what the CEO is planning - his vision.

2) They also fail to pay themselves a salary and through cpf – Paying themselves a salary helps them get money out from their business and paying to cpf is using the element of wood to create more wealth for themselves. A reasonable amount of salary is good enough especially when they plan to buy a condo in two years time then your salary has to be of a decent amount so that the bank would be willing to lend them money to buy that condo and of course ensure that the company makes enough money to pay them that kind of salary.

3) They fail to work hard – being their own boss sounds fun and a “wow factor" but there are plenty of hidden hours put into work in order to achieve success. however they must have the destiny to be their boss if not don’t ever try.

4) They go into the wrong industry – they tend to go into the industry that they feel can make the most money. however what they fail to note is that : maybe the fire industry like a restaurant business may not be suitable for them and then they can loose a big sum of money. They would be advised to go and have their life reading done by any fortune tellers in Singapore first before starting out on their own.

5) They tend to keep growing and growing the business and even when their personal luck is down - they should avoid growing but wait. that is a better strategy if not they may loose all those years of hard earned money and that would be such a waste.

6) They also tend to focus more on the sales volume and market share rather than their profit – most entrepreneur start off small and then they will grow and then hire more people in order to grow their sales volume however they may tend to forget to focus on their bottomline that is to grow their company ‘s profits and maybe to reduce operating costs. most of the time is because they do not wish to pay more taxes and this is a wrong mindset. the more taxes they can pay mean that the company is doing very very well indeed.
7) As business grow, they tend to employ their close relatives or friends rather than anyone smarter than them -
8) They tend to also listen more to others advice like spouse, parents’ comments - this is another great mistake that some entrepreneurs may take. they may listen to their spouse or parents' comments when they are actually not into business and have no idea how that particular industry performs and so they tend to give unnessary coments and judgements which may eventually misled the CEO.

Author's Notes: I wrote this from my own personal experiences as well as observations from some of my clients. hope you enjoy reading !!!

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1 comment:

Anonymous said...

Master Lynn,

Your clause 1 is well said though I am only working staff.
Because of their poorly organised plan and double-standard action, it really confuses the staff. Anything goes wrong, the immediate is always wrong

Bravo, Master Lynn

Mrs Chew