Don’t Do That – Entrepreneur II

Here we go, with the second in the series. The response for the first article from many was – “been there, done that”. Hence, I hope this one reaches you before you rush to the venue and commit the next couple of favorite mistakes – of Entrepreneurs.  Without further ado - 

Partnership – sharing and caring, is it?
So you have this friend who absolutely believes in your idea, and is ready to walk the mile with you. You become so overwhelmed, you get down on your knees and you say – “take my arm and a leg, and team it with 50% of my company, be my partner”. Friends, gratitude is a good attitude but keep it outside the business.

Partnership in business is not always a good idea.  If you really need someone to be a part of your project, make the person your first employee. And if the contribution of your friend is really prominent then make sure that the 50-50 rule does not get played.

Even if it’s with your best friend, equal onus is not really practical. There would come a point, where your decisions would be poles apart. We have all been victims of very long meeting, which result in more arguments than agreements- and the decision is waited on forever.  Hence, it’s best to clearly name the decision maker and own the position.

Next time you think of partnership, think of Harry Potter and Voldemort , having similar wands with similar powers – draws a pretty picture, isn’t it ?

Can’t afford to choose customers
Being choosy about the customers is the one idea that does not hit many entrepreneurs. The idea is to get a customer – “just, any customer”. But that sometimes might prove fatal.

I know a friend who did the posters, banners and other customized merchandise for a politician. It was a huge order to be delivered in a short span, and hence he worked day and night on it. As things turned out – the customer lost the election and my friend never got paid. On his first round of collection, my friend was told that the cost of his life was lesser than his bills. My humble friend read the message right and is now working day and night in a call center to cover his loans.

Lesson – stay away from bad customers and secondly, don’t have an only customer. Your customers help you enhance your product and services. And in the long run, they are the people who co-create your brand.
Ideally a good customer is someone who pays your bills on time and gives you a progressive feedback.

Good customers also get you a presence in the market.  And bad customers leave you with debts and a call center job. 

Remember, it’s better safe than sorry. See you soon!