30#Most#Common#Mistakes#of#Entrepreneurs#!!Author:!Eva!Hukshorn!#
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2#
1. EFactor#is#a#Smart!Network!that#matches#entrepreneurs#with#the#very#people#who#can#help#them#grow#
2. Finding#Business!Partners:#from#partners#to#investors,#from#coaches#to#customers#
3. Largest!Entrepreneurial!Network!in!the!World#with#1mio#members#in#185#countries#
4. An#online#community#Offering#you#a#network,#knowledge,#events,#and#every##business#resources#you#need#to#succeed#@#discount!#
5. GO!Online,!fix!your!personal!profile!&!company!profile!and!get!MATCHED!!
It’s!not!about!connecPons!Q!it’s!about!the!right!ones…!
Eva#Hukshorn:#An#introducJon#
• Work!Experience!- Current: # #Partner#EFactor#
# # #Board#of#Advisory:#TreFoil#Energy#/#CleanDrinks#/### # #Global#Thinkers#/#ShowLinq#
## # # #Coach#Startup:#Bootcamp#Amsterdam#/#New#Venture#McKinsey#- 2009#–#2010: #Dutch#BouJque#–#Marktlink#Mergers#&#AcquisiJons,#Amsterdam#- 2007#–#2009:# #Royal#Bank#of#Scotland#–#Corporate#Finance,#Amsterdam#- 2004#–#2009:# #ABN#AMRO#–#Corporate#Finance#New#York,#Amsterdam#- 2003#–#2004:# #Accenture#–#ConsulJng#London,#Amsterdam#
• EducaPon!- 1997#–#2002: #MSc#Economics,#Finance#–#University#of#Groningen,#the#Netherlands#- 2003:# # #InternaJonal#&#Asian#Studies#–#NaJonal#Sun#Yat`Sen#University,#Taiwan#- 2009#–#2011:# #CerJfied#Management#AccounJng#(CMA)#–#InsJtute#of#Management#Accountants##
# # # #(IMA),#United#States#- 2009#–#2011:# #Colloquium#General#&#Modern#Art#–#Academy#for#History#of#Art,#the#Netherlands#- 2012: # #InternaJonal#Financial#Report#Standards#(DipIFR)#–#AssociaJon#of#Chartered#CerJfied#
# # # #Accountants#(ACCA),#United#Kingdom##
###
3#
FUNDING#TUESDAY,#EVERY#TUESDAY#
So!what!can!you!expect!from!us!each!Funding!Tuesday?!
1. Webinars#on#EFactor#on#Finance#&#Funding#related#topics#in#the#EVENT!SecJon#
2. Blogs#&#interviews#with#informal#investors#and#funded#entrepreneurs#with#Jps#&#tricks#in#the#BLOGS!secJon#under#NOW!
4#
3. Finance#&#Funding#related#arJcles#on#NOW!feed#
4. In#the#Finance#&#Funding#GROUP!on#our#website#you#will#find#Q&As#of#the#webinars#under#NETWORK#
5. In#the#KNOWLEDGE!base#you#will#find#more#and#more#presentaJons#on#Finance#&#Funding#related#topics,#including#the#webinar#presentaJons#
6. And#if#you#become#a#VIP!MEMBER!you#will#personally#be#supported#on#your#Finance#&#Funding#related#quesJons!
Webinar#Program#Overview#2012#
June#19:# #Business#Plan#WriJng#`#A#Roadmap#to#Success#July#3:## #Pitching#&#PresentaJon#`#3#Minutes,#1#Impression#July#17:# #Strategy#`#A#Vision#for#the#Future,#A#Strategy#for#Gehng#There#July#31:# #BudgeJng#&#ForecasJng#`#PredicJng#the#Outcome#Aug.#14:# #Working#Capital#`#An#Unknown#Key#to#Success#Aug.#28:# #Capital#Management#`#Playing#with#Risk#Sept.#11.:# #Funding#&#Investments#`#Some#Sources#are#More#Equal#then#Others#Sept.#25:# #ValuaJon#`#Art#or#Science#Oct.#9:# #Exit#Strategy#`#Nice#to#Have#or#Need#to#Have?#Oct.#23:# #Bootstrapping#`#An#AlternaJve#Answer#to#Funding#Nov.#6:# #Crowdfunding#`#The#Power#of#Friends,#Family#and#Fools#Nov.#20:# #Networking#`#Nice#You#have#3000#Friends,#I#have#30#Relevant#ConnecJons#Dec.#4:# #MarkeJng#&#(Social)#Media#`#Noise#or#Value?#Dec.#11:# #No#Sales,#No#Glory#Dec.!18:! !Most!Common!Mistakes!of!Entrepreneurs!
5#
6#
Mistake#1:#Becoming#an#entrepreneur#for#all#the#wrong#reasons#
• Think#about#it#before#you#start#
• Entrepreneurial#life`style#
• Discuss#with#your#direct#
environment#
• Serious#financial#consequences#
• Not#temporary#
• Follow#your#dream#
Key!Points!
Make!a!raPonal!decision!about!taking!this!step!
7#
Mistake#2:#No#vision,#no#focus#
• No#vision#
• No#mission#
• No#path#
• No#goal#
• No#plan#
• No#relevance#in#your#daily#to`do#
• No#focus#
Key!Points!
There!is!no!elevator!to!success,!you!need!to!take!the!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!stairs!!one!step!at!the!Pme!
8#
Mistake#3:#No#business#plan#
• Define#your#idea#
• Do#research#
• Create#a#Business#Plan#
• Know#your#target#customer#
• Test#the#market#
• Reinvent#yourself#constantly#
• Focus#on#bigger#picture#
Key!Points!
Every!major!decision!in!your!life!takes!planning,!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!becoming!an!entrepreneur!is!a!major!decision!
9#
Mistake#4:#Unlimited#growth#opportuniJes#
• Research#market#
• Understand#needs#target#group#
• Divide#target#groups#in#Jer#1##
• Beta#test#product##
• Understand#price#elasJcity#
• Understand#regional#&#other#
boundaries#
Key!Points!
Understand!your!boundaries!
10#
Mistake#5:#Too#niche#
• Picking#small#markets#
• Avoid#compeJJon#
• Sense#of#control#
• No#money#can#be#made#
• What#should#others#start#up?#
Key!Points!
Understand!your!boundaries!
11#
Mistake#6:#CompeJJon#is#not#relevant#
• Market#research#
• Part#of#you#business#plan#
• Beker#understanding#of#
customer#&#product#needs#
• Don’t#invent#the#wheel#
• Global#compeJtors#can#be#
regional#supporters#
Key!Points!
Be_er!well!stolen!than!badly!conceived!
12#
Mistake#7:#Not#knowing#your#customer#
• Research#you#customer#
• Understand#needs#
• Know#them#by#name#
• Customize#products#at#start#
• Feedback#is#best#input#
• Friends#&#Family#are#not#
customers#
Key!Points!
Focus!on!customers,!not!compePtors!
13#
Mistake#8:#No#validaJon#of#the#product#
• Great#product#but#no#customers#
• To#afraid#to#ask#money#
• Not#sustainable#
• ValidaJon#of#products#means#
generaJng#revenue#streams#
Key!Points!
Free!is!not!a!business!model!
14#
Mistake#9:#The#“kinder`überraschung”#effect#
• Too#much#product#development#
• No#sales#
• Feedback#valuable#for#effecJve#
sales#&#logisJc#process#
• Pareto#80`20%#rule#
• Focus#on#sales#from#start#
• Customize#in#beginning#
Key!Points!
Launch!your!product!when!80%!ready,!the!other!20%!comes!from!feedback!of!customers!
15#
Mistake#10:#Wrong#Jming#of#launching#
• Too#quick#can#ruin#reputaJon#
• Too#slow#can#disconnect#you#
with#customers#
• Force#yourself#to#launch#
• But#do#it#planned#
• What#is#the#minimum#that#
should#be#done#
Key!Points!
Ready!to!launch?!Have!a!clear!countdown!
16#
Mistake#11:#No#idea#of#your#needs#to#succeed#
• Create#a#milestone#overview#
• Define#what#you#need#to#do#to#
reach#each#milestone#- funding#needed#- contacts#needed#- other#crucial#needs#
Key!Points!
What!does!it!take!to!be!successful?!
17#
Mistake#12:#Forgehng#to#execute#
• Idea#needs#to#be#developed#
• ValidaJon#create#value#
• ValidaJon#needs#business#
structure#
• ExecuJon#is#key#
Key!Points!
An!idea!is!worth!nothing!without!execuPon!
18#
Mistake#13:#CreaJng#too#large#budgets#
• Create#a#budget#before#you#start#
• Down#&#upside#scenario’s#
• Calculate#yearly#funding#needs#
• Think#about#ROI#overall#and#per#
project#/#business#unit#
• Always#bootstrap#
• Be#in#control#
Key!Points!
Being!an!entrepreneur!is!not!the!same!as!being!a!celebrity!
19#
Mistake#14:#Forgehng#to#bootstrap#
• Be#creaJve#
• Funding#from#own#funds#&#FFF#
• Organic#growth#through#revenue#
• Services#/#consulJng#businesses#
• Lean#&#mean#
• Delays#in#development#
Key!Points!
Bootstrapping!is!not!a!way!of!funding!your!business,!it!is!a!mentality!
20#
Mistake#15:#CreaJng#too#small#budgets#
• Create#a#budget#before#you#start#
• Down#&#upside#scenario’s#
• Calculate#yearly#funding#needs#
• Think#about#ROI#overall#and#per#
project#/#business#unit#
• Always#bootstrap#
• Be#in#control#
Key!Points!
Growth!cost!money!
21#
Mistake#16:#Thinking#you#will#be#the#next#Mark#Zuckerberg#
• Be#realisJc#on#forecasts#
• Calculate#downside#scenario’s#
• No#hockey`sJck#growth#forever#
• Know#your#limits#financially,#
personally#&#operaJonally#
• Create#SWOT#analysis#
Key!Points!
Set!expectaPons!realisPc,!but!remain!opPmisPc!
22#
Mistake#17:#Using#all#your#last#financial#resorts#
• Don’t#spend#it#all#at#once#
• Be#care#with#involving#Friends,#
Family#Fools#
• Make#a#personal#financial#
planning#before#starJng#
• Define#your#financial#limits#
• Hold#on#to#your#equity#
Key!Points!
Use!your!money!wisely:!determine!your!limits!before!you!start!
23#
Mistake#18:#OveresJmaJng#your#leadership#skills#
• Building#is#leading#
• Engaging#ahtude#on#all#levels#
• Don’t#micro#manage#
• Be#paJent#
• MoJvaJon#is#key#
• Be#a#manager#from#the#start#
• Otherwise#leave#HR#to#others#
Key!Points!
StarPng!up!a!company!is!about!leading!people!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!through!the!darkness!with!just!one!torch!
24#
Mistake#19:#Talking#to#much#
• Especially#younger#people#talk#
too#much#
• Sales#is#about#listening#
• More#respect#
• Most#communicaJon#is#
unspoken#
Key!Points!
Building!respect!is!about!shucng!up!and!listening!
25#
Mistake#20:#Doing#everything#yourself#
• Delegate#to#grow#
• All#jobs#in#one#in#beginning#
• Low#difficulty#level#at#start#
• Know#what#you#are#capable#of#
• Details#are#for#specialists#
• Calculate#cost#prices#
• Remain#focus#on#bigger#picture#
Key!Points!
Focus!on!bigger!picture!and!leave!details!to!specialists!
26#
Mistake#21:#Bad#programmers#and#wrong#plavorms#
• Programmer#build#your#
infrastructure#
• Bad#plavorms#lead#to#bad#
business#
• Next#to#sales,#they#are#probably#
the#first#you#need#to#hire#
Key!Points!
Programmers!are!key!personnel!
27#
Mistake#22:#Building#teams#with#the#same#type#of#people#
• Too#focus,#too#much#work#leads#
to#blindness#for#hurdles#
• Be#open#for#honest#feedback#
• Conflict#is#ok#
• Deal#with#conflict#&#feedback#
• Trust#is#key#
• Complementary#skills#in#team#
Key!Points!
Don’t!surround!yourself!with!“YesQMen”,!you!need!people!you!can!rely!on!when!Pmes!get!tuff!
28#
Mistake#23:#Building#teams#with#friends#
• Friends#are#not#necessary#good#
business#partners#
• Competence#more#important#in#
business#
• Trust#
• Harder#to#provide#feedback#
Key!Points!
If!you!can’t!fire!them,!don’t!hire!them!
29#
Mistake#24:#Maintaining#equal#partnerships#
• Divide#shares#equally#at#start#is#
common#
• Doesn’t#help#with#disagreement#
• Different#ideas#
• Define#a#leader#to#hold#on#to#the#
vision#and#focus#
Key!Points!
There!can!only!be!one!captain!on!a!ship!
30#
Mistake#25:#Stop#maintaining#&#building#relaJonships#
• Networking#is#key#when#starJng#
• Work#overload#leads#to#defocus#
• Don’t#forget#to#pitch#
• Networking#is#part#of#your#to`do#
• Keep#in#touch#with#relaJonships#
• “Nice#you#have#3000#friends,#but#
I#have#30#relevant#connecJons”#
Key!Points!
Networking!is!the!reason!your!start!was!successful,!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!it!will!also!be!the!reason!to!conPnue!to!be!successful!
31#
Mistake#26:#Moving#into#grey#areas#
• Times#get#tuff#
• All#is#fair#in#love#and#war#is#not#
true#in#business#
• Protect#your#reputaJon#
• Be#clear#on#norms#&#values#
• Communicate#from#the#start#
• Act#when#necessary#
Key!Points!
Always!walk!a!straight!line!
32#
Mistake#27:#Thinking#only#1#way#leads#to#Rome#
• What`if#scenario’s#
• Create#buffers#in#Jme#and#
money#
• Plan#
• But#be#dynamic#
• Be#sensiJve#for#warning#signals#
Key!Points!
Have!a!plan!B,!C!and!D!
33#
Mistake#28:#Picking#a#bad#locaJon#
• Some#places#are#beker#then#
others#
• Differs#per#industry#and#country#
• Start#where#the#experts#are#
• Start#where#customers#are#
Key!Points!
LocaPon,!locaPon,!locaPon!
34#
Mistake#29:#Legal#problems#do#not#solve#themselves#
• Costly#&#Jme#consuming#if#not#
dealt#with#properly#
• Legal#decisions#at#start#
• Influence#future#course#of#
business#
• Hire#skilled#lawyer#experienced#
with#entrepreneurs#
Key!Points!
Deal!with!it!now!
35#
Mistake#30:#Forgehng#the#bigger#picture#
• Plan#before#you#start#
• Create#a#5`year#plan#
• 3#milestones#+#18#months#to`do#
• Assess#frequently#if#you#are#sJll#
on#the#right#track#
• Work`life#balance#will#enhance#
success#
Key!Points!
Work!hard,!play!hard!but!never!forget!to!focus!
36#
Conclusion#
4#addiJonal#webinars#in#2013#in#this#series#
Jan.#8:## #Strategy#`#A#Vision#for#the#Future,#A#Strategy#for#Gehng#There#Jan.#15: #Personnel#–#You#Have#Got#to#Love#Them##Jan.#29: #InnovaJon#–#Blockbuster#or#Ghostbuster?##Feb.#12: #Sustainable#Entrepreneurship:#Lean,#Mean#&#Green###Several#webinars#on#Crowfunding#including#panel#
37#
BECOME!A!VIP!MEMBER!WITHIN!1!WEEK!AND!GET!YOUR!PLAN!CHECKED!!
SPECIAL!OFFER,!ONLY!USD!12!!
1. FREE!checking!of!final!drag!!business!plan!2. FREE!discussion!on!next!steps!and!how!&!where!to!find!funding!in!your!
region!3. FREE!to!ask!addiPonal!quesPon!related!to!funding!&!investment!related!
topics!4. FREE!documentaPon!of!all!webinars!so!far,!presentaPons!+!notes!!5. FREE!downloads!on!relevant!entrepreneurial!topics!!6. EXTRA!discounts!on!all!our!products!on!our!website!7. Send!me!an!email!on:!www.efactor.com/hukshorn!8. Follow!me!on:!www.efactor.com/hukshorn!!!!###
38#
HTTP://WWW.EFACTOR.COM/VIP!
Thank!you!!!
This!document!was!prepared!and!wri_en!by!Eva!Hukshorn.!Several!people!and!organizaPons!
have!inspired!her!to!write!this!presentaPon,!amongst!which!are,!but!not!limited!to!the!
Founders!of!EFactor!
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