It's been four years since Leah Hynes quit her job at PR. Then she was insanely proud of her bold act, with optimism posted on Facebook photos of her first day of "freedom", in which she sipped a latte in a cafe in front of her laptop. The photos were signed “My new office!” And it made all her friends jealous ...

Three years later, Leah was sitting on the edge of the bed, sobbing with frustration - she had almost no income. She could not understand what went wrong and why she failed to achieve the goal.

The point is, the enticing “building your own business” that many people talk about on the Internet involves more than just knowledge. It also takes a lot of experience. Through trial and error, Leah realized one important thing: no matter what they tell you on the Internet, no matter what they sell to you, no matter what you think, you are already doing absolutely everything you can.

There is no magic key or business secret that you are missing.

Every entrepreneur, hardworking, persistent, decisive, ready to take risks and optimistic about the future, does not need additional motivation. He does not need those who will tell you that you need to work harder and harder, that you need to more actively visualize the future, maintain a positive attitude and other meaningless things.

All these stories are just for you to buy them. Their authors face the same problems as you. And you are already doing everything that needs to be done. And even more.

Leah Hines lost her entrepreneurial spirit in four years and financial resources... But the worst thing was in those thoughts that originated in her head that she was doing something wrong. Perhaps she did not work much? Or was she mistaken in something?

We all have such thoughts sometimes.

1. Take your time

6. Much depends on luck

It is difficult to say what is the key to success in entrepreneurship. Why do some people keep good financial position starting to do business, while others are in poverty in the same conditions?

Leah Hines, after four years of doing business, could not even come close to her former income. There can be many explanations for this, but Leah believes that it is luck that determines the success or failure of a business.

A lot of entrepreneurs come up with phenomenal ideas, they have talent, serious intentions, solid foundations. But they didn’t succeed because they weren’t lucky.

Unfortunately, it is difficult to do anything here. You just have to be in the right place at the right time - like those beautiful girls seen in mall and they become supermodels. Someone may introduce you to influential people, you may be invited to speak at conferences or speak at TED, etc.

Risks are an integral part of doing business. In the classic definition entrepreneurial activity you can find two basic concepts: "the risk that must be taken in the course of its implementation" and "profit as a reward for taking risk." With the right approach to risk management, a company's profit can increase significantly. Well, they are responsible for the implementation of the "correct" approach -.

Speaking about risk management, it should be noted right away that it is more of a manager's function than a separate profession. This thesis follows from the definition of the risk structure of any business:

1. Financial risks, as a result of the implementation of which the organization may not be able to fulfill its financial obligations to counterparties. This type includes:

• liquidity risks in terms of the balance of assets and liabilities in terms of the terms on the balance sheet;
• market risks as risks of a decrease in the value of assets due to changes in market factors;
• credit risks as risks of non-repayment of loan funds, etc.

2. Operational risks, arising in business processes that are associated with fraud, various failures in IT support, imperfections personnel policy, violation of safety rules at work, damage to assets, legal incidents and other factors occurring in the course of the organization's operations.

3. Business risks associated with incorrect management activities:

• selection of a development strategy that does not correspond to the goals, mission and vision of the organization;
• loss of reputation in the market;
• decrease in the market value of the company.

4. Other types of risks, depending on the type of activity of the company.

As a rule, the multifaceted function of "risk management" is distributed between various divisions of the company (legal department, security service, risk management department, etc.). It is coordinated by the head of the organization (this strategic question) or specially authorized Executive Director, whose duties include:

• participation in determining the company's development strategy;
• search for ways where you can achieve the most effective ratio of risk / return indicators.

Area of ​​responsibility and job requirements

For example, commercial banks are in demand who manage credit, operational and financial risks in various business lines (corporate, small and medium-sized businesses, retail, investment and others).

How versatile are these specialists? In the banking and financial services- quite. So, who has worked for a long time (more than three years) in a universal commercial bank or insurance company, in the future, without any particular difficulties, he will be able to apply his knowledge and accumulated tools in any similar institution. But the branches of the real sector differ much more: a risk manager with experience in agricultural holdings is unlikely to quickly achieve success in metallurgy or in oil refining.

As a result, the professionalism of a risk manager is significantly limited by industry specificity - knowledge of products, business processes and specific features of a particular market. This circumstance largely determines the basic requirements for the position:

1. Knowledge of business processes and the specifics of the company's activities (or at least knowledge of the business in the part for which he is responsible for risk management).
2. Understanding the specifics of the market in which the company operates, the ability to analyze the situation.
3. Possession of risk management tools in this market.
4. Understanding the specifics of risks when concluding contracts and subsequent monitoring of their performance.

Reports (or the relevant department) always directly to the chairman of the board of directors.

Functional

In principle, a specialist who meets the above requirements can cope with his main functional tasks: to determine the acceptable level of risks at which the company's profitability will be maximum. But, of course, the success of these tasks largely depends on his personal qualities and experience.

For example, if he is responsible for the full cycle of credit risk management in a commercial bank, then its functionality includes a chain of tasks - from organizing the setting of the scoring model * so that the default level of the loan portfolio does not exceed a predetermined threshold, to organizing the collection of problem assets, so that the minimum cost of the process itself; to achieve the maximum possible amount of collection of problem debts.

The main task in the course of operational risk management is to maintain a balance between the level of risks and the efficiency of the business process in which they are inherent. For example, by installing excessive protection of communication channels, you can significantly reduce the data transfer rate, which, in turn, will inevitably lead to a decrease in the number of operations performed in the IT complex and, accordingly, to a decrease in business profitability.

It should be remembered that the specific functionality of a specialist in this area always depends on the specifics of the business, since, although it is important, it is still a supporting (driven) process.

Education requirements

A specialist in the field of risk management is usually expected to have applied knowledge in the following areas:

• mathematical and statistical analysis;
• information systems and technologies;
• jurisprudence;
• subject area in which risks are to be managed.

The profession is quite new for our country, therefore the labor market is experiencing a shortage of qualified personnel, and there are few educational institutions in Ukraine capable of preparing specialists for work in this field. To date, as far as I know, there is no such area of ​​training / specialization in universities. Until recently, risk managers were:

• experienced managers - from business units who perfectly understand the key aspects of activities;
• graduates of educational institutions of mathematical and technical specialties, who, having in their arsenal the apparatus of statistical and mathematical analysis of risk management, literally "on the fly" mastered the specifics of business management.

So far, the main “forge of personnel” for the market remains NTUU “Kyiv Polytechnic Institute”, which graduated from approximately 70% of risk managers working in the banking system of Ukraine.

The situation changed in 2010, when the international Global Association of Risk Professionals (GARP) opened its branch in Ukraine. To the steering committee regional office GARP includes well-known Ukrainian and international bankers. Today GARP offers:

• training and professional development programs from primary to senior management levels;
• full certification in the field of risk management.

Twice a year, GARP conducts exams for the FRM (Financial Risk Manager) certification, a globally recognized certification of qualifications in risk management.

Attracting certified specialists - members of the Association - allows companies to form modern culture understanding risk management throughout the organization.

Career

The level of remuneration depends on the position held:

• top managers - heads of departments can earn from 5 to 60 thousand dollars per month (decided on an individual basis);
• middle managers - $ 2.5–3 thousand per month.

Many people who have chosen this profession have an analytical mindset, so they are more attracted to a professional career - improving skills within the chosen direction. Of course, in doing so, they gain experience in different companies and sectors. But still, few strive for a vertical career: very rarely they "grow" to top positions and almost never become business leaders.

Of course, there are people with very different temperaments among them. Of the personal characteristics that help to achieve success in the profession, it can be noted: an analytical mindset and "greed for details" - while keeping the focus of attention on the situation as a whole. This is the key to success.

Feasibility of introducing a position

The position in charge of ensuring business break-even is introduced at the stage of company maturity. Introduction to staffing table positions with such functionality will be justified if a business process model has already been created, described and "works". In case of immaturity of business processes or an inadequate level corporate governance the risk manager is unlikely to fit in well with the overall structure. Moreover, its introduction can cause conflicts related to the separation of powers and areas of responsibility: if business processes are not defined, it is impossible to appoint their owners and fully determine the scope of authority of the responsible persons.

It should be noted that even if the company does not have a separate specialist in charge of risk management, the risk management process itself is always there. In such cases, it is carried out by various structural units, for example:

• The security service - in terms of ensuring economic and physical security, combating fraud and external threats.
• Legal department - in terms of minimizing legal risks.
• By the information security- in terms of ensuring the integrity, confidentiality and availability of information.
• Financial department - in terms of financial risk management.
• A subdivision internal control- regarding the management of operational risks and the correctness of the work of business processes. And others.

In conclusion, I would like to note that there is still no single definition of the profession of "risk manager", with which everyone agrees. Risks are always inherent in business. As a matter of fact, profit - the reward for managing risk - is the main motivation of an entrepreneur. At the same time, the specificity of risks is always determined by the specifics of the business.

Recently, the management is increasingly arming information technology This means that many traditional approaches and risk management tools are becoming obsolete. Therefore, it cannot be said with certainty that professional experience a risk manager who is valuable today will be in demand in the future, even in a year. Risk management is a very dynamic process, and only those who are constantly developing and keeping up with the times succeed in it.

* Credit scoring is a system for assessing creditworthiness (credit risks) based on numerical statistical methods... Credit risk assessors first develop risk assessment questionnaires. Each item of the questionnaire is evaluated by a certain number of points. The decision to approve or refuse to issue a loan is made depending on the number of points earned.

Of course, you are aware of the situation when you invest and invest money in advertising, renting premises, rearranging equipment in a store, and sales did not grow, and do not grow. You have a good product (or service), reasonable prices, but customers do not understand this and prefer a cheaper and lower quality product. Where's the justice?

There are no sales, which means there is no profit and your business may soon turn into a hobby that you do at your own expense. What to do? To improve something, you first need to find out what exactly and what problems exist in your business.

Another important problem for small and medium-sized businesses is when they come to their region network company, with its multi-million dollar advertising and marketing budget and begins to offer goods and services at a lower price. These companies have huge discounts on bulk purchases, they can afford to hire the best specialists in all areas. Your business for them is like a drop in the ocean and they can even afford to work for a very long time at zero or even negative, waiting for local firms like you to break down and leave the market.

How to resist online godzillas? What will keep you afloat?

There is only one answer - a well-built sales and marketing system will not only allow you to survive in the market, but will also provide good sales growth for your company.

In this case, there is a very apt saying: There is a whole ocean of opportunities to get a lot of income. The problem is that most people approach this ocean with a teaspoon.

Most small businesses pay no attention to marketing at all. This is the biggest mistake that is being made.

So that you know what prevents your business from growing, here are 10 key problems inherent in any business, solving which, you will get an amazing result!

1. Businessmen don't know their numbers.

Check yourself - do you know how much revenue and profit you have over the past month? How much did you keep for yourself and how much did you put back into the business? Believe me, these are not the numbers that influence the increase in sales! The overwhelming majority of entrepreneurs do not imagine how much each client costs them, how much they earn on each client, on each product, on each group of products. And what material result does each advertising company bring? There are no reports, no systems to track the effectiveness of advertising. As a result, huge amounts of money are wasted on unnecessary advertising.

Without knowing the numbers, it is very difficult to make decisions. As a result, the decision is not made on the basis of how much advertising has earned, but simply "how much we have earned." But this is completely wrong! Knowing the figures of how much profit this or that ad has brought, you can decide which ad to invest in next time.

2. Trying to compete based on price.

This is another problem for small and medium-sized businesses - trying to compete on the basis of price. What does an entrepreneur do when he sees a similar product from competitors? That's right, he lowers the price of his product and thereby spoils the market for himself and his competitors. Endless dumping does not lead to anything good.

Few people understand that sometimes it is easier to sell at a higher price, and if you apply two- or three-step sales, it turns out to be even better.

Selling at a high price is much easier and more profitable. Let there be fewer clients, but there will be fewer problems, costs will decrease, and as a result, there will be more money. Build your sales in such a way that customers don't value you for a low price, but they value you for the value you give them.

3. Lack of work with the existing customer base, with a constant desire to increase it.

This problem lies in the fact that an entrepreneur already has a decent base - 500-1000-1500 clients, but he does not know what to do with it. A client came, bought something, he was added to the database and he left. That's all, this is where the contact with the client ends.

What to do next? The base actually does not bring money, but, as you know, its own customer base is actually a "golden asset" for any business. It has been proven that selling to an existing client is 5-7 times cheaper than attracting a new one! Everyone wants to sell to new customers, but few people work with old ones, although with the right approach you can earn many times more on them.

4. Processing system potential clients in real buyers is like a bucket full of holes.

The essence of the problem is that no one really deals with the clients who have addressed - the client came, looked and left, the money was lost. If you focus on closing everyone who comes or calls for a purchase, you will immediately get extra cash for your business!

Remember, if the client made an effort and called you or came, he is actually ready to make a purchase, you just need to push him to do it with the right actions.

5. The entrepreneur has no desire to change anything in his business.

It is human by nature to be lazy. Few people are ready to “move mountains” today in order to get results only tomorrow. Everyone wants the result now and immediately! And strategies to increase sales work gradually and not immediately. Therefore, many are limited by the status quo and available income. People just wallow in the swamp of their business and do not understand how to raise their business to a new level.

6. Many businessmen, instead of working "on" their business, work "in" their business.

Entrepreneurs spin like a squirrel in a wheel, and the more they spin, the more customers come to them, the volume of work grows, this requires more and more additional time, and there are only 24 hours a day. The result is a vicious circle.

It turns out that a person simply hired himself to work, and believes that he has a "business".

You need to understand that doing business for business's sake is the wrong approach. Business must be done to achieve your goals!

The problem can be solved by building new management systems and "distancing" from the business of its owner.

7. Head-on sales practically stopped working.

Everyone starts by trying to sell head-on, but now this method no longer works. If you use only this method in your business, alas, you are doomed. Real sales where a two-step sales system is used. For example, you can not just sell, but first educate customers, then next time they will come to you and buy.

8. Your site is not selling.

This problem is especially true for small businesses. The entrepreneur either does not have his own site, or this site formally exists, but in fact it does not contribute to sales. The site is quite a powerful resource for business in our time. Having a good "selling" site, you can attract enough customers, even in a small town.

By the way, in the West they already say that if you are not on the Internet, then you are not in business either!

9. Perfectionism.

This problem lies in the fact that you try first to make all processes perfect, and then only start them, and then everything will be fine. You can do it endlessly to make perfect, and you will never start the process. You need to make some kind of prototype and run it, and then you can improve it. Remember how software products are released - at first the beta version, after that they start releasing new and new versions, improving the flaws, while simultaneously implementing the sales process.

10. "I know it won't work for me."

There are entrepreneurs who are initially convinced that a particular strategy is ineffective. Often, they didn't even try to do something. They just think so. In fact, everything works, you just need to take and do, take and do. The effect depends on the number of attempts.

For those who do not want to test new strategies, there is only one answer - if you want to receive like everyone else, do it like everyone else! If you want to get like others, do it differently!

So now you know what is holding your business back from growing. The case is small - to implement strategies to increase sales and solve problems, one after another, systematically and persistently.

Any mature person, especially when tired of work, thinks about starting a business. Most often, these thoughts do not lead to decisive steps, but they can be quite intrusive. Let's figure out which one professional growth you need - it may not be time for risky moves.

You want more responsibility

Sometimes the drive to start a business is driven by the desire to take on more responsibility. When it seems to you that at your current place of work you would have done everything differently or organized processes differently, consider whether you are ready to take and be responsible for the implementation of these decisions. In your business, you will have to be responsible for everything that happens: legal and financial aspects, clients, employees. And if, while working in an office, you do not think about who paid for coffee in the kitchen and toilet paper, then becoming an entrepreneur will find out how much it will cost you all the pleasures of keeping employees.

According to psychologists, responsibility is the ability to answer not only for what has been done, but also for what has not been done. Therefore, running your own business, you will have to answer the question why it has not yet come to success.

Agree that starting a business from scratch runs the risk of facing a lot of mistakes before things get better.

Management experience will help to minimize risks. Is there an opportunity to borrow leadership position in the company you currently work for? Find out about this opportunity or search for a job with management functions to gain more responsibility and experience what it's like to make big decisions. In a high position, you can not only learn, but also suddenly decide that this is not for you. Or, on the contrary, you will find yourself in your place, and disturbing thoughts about changes will leave you.

You need challenging tasks

When it gets boring at work, the desire to start a business can only mean a readiness for new, more difficult tasks... Surely owning a business is not an easy task, and that would be a good puzzle. But think, is it worth the risk if there is still room to grow within the company?

If boredom builds up discontent at work, you have to work with discontent. And not to give up everything and start your own - otherwise the discontent will migrate there too.

Yevgeny Ilyin, Doctor of Psychology, writes that boredom is a state opposite to tension, in which a person is not able to be in such a relationship with the world around him, in which he has an emotional response and interest from creative activity. Researchers of the state of boredom tend to think that it comes from repetitive actions. So find out if you can expand your range of tasks at work to get your motivation and drive back. If after that the desire to create your own business only intensifies, then you will do it in the right and necessary mood.

You have big ambitions

Many are convinced that if they didn’t start their own business, they didn’t succeed as a person. Own business is unlikely to bring happiness if it is not the true goal. It is important to accurately understand your own level of aspirations - those goals that you can really achieve without turning life into work for work's sake, achievements for the sake of achievement. A harmful thought may look like this: “We need to earn more money! You have to work hard! " Who needs? Why do you need it? For what? We are sure that honest answers to these questions can be confusing.

Paul Weinzweig, Doctor of Social Psychology, believes that the path to success should start with your life philosophy. In his opinion, the key to success lies in the pursuit of self-confidence, permanent work above oneself. In other words, when setting any goals for yourself, it is important to rely on own desires and understand what this experience will give you, what you yourself will receive from it and whether you really need it. If opening your own business is a thought imposed from the outside, then this will not contribute to your own development, it will only bring more tension into life.

Another thing: starting your own business, you slow down your development as a specialist and begin the path of a manager. Is this in your plans? It makes sense to understand the motives of your professional activity.

There is a desire to release your product / service

Was born genious idea and you want to change the world with a new product or service? Well, this world is supported by ideological and active people. True, short and successful way to make your dreams come true does not necessarily lie through your own business.

To begin with, describe your idea in as much detail as possible, present it as a project - first of all for yourself. The more you do this, the more you will understand what steps should be taken in the future for implementation.

Did you know that many good ideas implemented by small businesses are often bought up by large companies? The fact is that large-scale corporations cannot react so quickly to market changes and quickly release innovative products and services. Therefore, buying adventurous newbies is a way to survive in the harsh world of business.

When you describe your idea, think: would you like to implement it "under the wing" of some large company? This is a good opportunity to immediately receive financial and legal support, which will relieve you of a large layer of responsibility at the initial stages. If you start on your own, you will have to look for investors, and this is not an easy task.

You need freedom

While you work for a corporation, it may seem that your business is freedom: you can do what you want, live according to your own schedule and not depend on anyone. In truth, entrepreneurial freedom looks different. There is a lot of work, especially in the first stages, and as for the schedule, in any case you have to adjust to the schedule of those on whom your business depends. Therefore, the freedom of an entrepreneur is freedom directly in making decisions: you yourself move the business as you see fit. At the same time, you have a lot of obligations, from which you will not go anywhere.

Want to try a more independent and responsible life professionally? Go freelancing - this can be an intermediate step in your business. Working remotely, you can feel all the pros and cons of working for yourself, and then decide whether you want to move on in this direction.

Entrepreneurs' opinion

Tamara Kutalyova, entrepreneur: “At one time I was forced to do my own business, since my profession of a teacher (by the way, beloved from my heart) did not bring normal income. I had a part-time experience in accounting, through which I came into contact with the world of business, so it was not so scary to take a step towards starting my own business. I made various attempts: I was engaged in food, opened shops, sold security systems. There were many mistakes, including those that unsettled for a long time, but I was curious, there was enthusiasm, and I found the strength to try again and again.

Now I understand that in my essence I am not a businessman. In my opinion, a businessman is a more greedy, ambitious and advanced person. I just liked the process: something is happening, things are going on, some money is being earned. In fact, it has always been difficult for me to finish what I started, and with such an approach there is nothing to do in business.

Per last years the rules of business have changed, the tax burden has changed, and I would not start anything from scratch. After 20 years of my own business practice, I settled on freelancing, now I'm doing some custom work. I no longer have the desire to chase money, and I believe that for the start you still need to have a lot of strength and support. If there is an opportunity to become a businessman within a business - for example, a top manager or a project manager within a company, then you can achieve both satisfaction and good financial performance. "

Ekaterina Guseva, entrepreneur: “ Own business- this is not for everyone, because it is a lot of labor and time resources. Before starting, you need to clearly understand that there is some kind of airbag, there is an opportunity to do your favorite thing for a while without profit or even in the red. In my opinion, people who have three children, a car loan, a mortgage fall under the category of people for whom their own business is too risky business. In this case, it is better to pay off all debts and loans, put the children on their feet and only after that think about their business.

It is also dangerous to start a business for those who do not know what they are cool at, what they would like; do not understand what to do. They take on everything and want to be entrepreneurs only because it's cool and don't want to work for an uncle. Still, for business, you need to understand well in what area you are strong, what are you. strengths, and for this you will have to gain experience and skills working for your uncle - there are no workarounds. After that, you can already assemble a team of like-minded people and start.

It seems to me that if you are not yet 30 years old, it will be difficult to run your own business, although there are many success stories of very young entrepreneurs: these are punchy and talented guys. And when you just want quick money at a young age, then business is not the best idea.

Business readiness looks something like this: there is good accumulated experience, there is financial savings, support from investors or partners. Sometimes the first endeavors are financially ready to support the spouse - why not? An important factor is that your eyes should burn wildly from the case. And there must be faith that it will change the world. Then it's worth the risk. If your eyes are burning, but you do not really understand what and how to do, then motivation may well compensate for the lack of skills, because everything needs to be done with a soul.

There is another option: there is no business for the soul, but there is an entrepreneurial streak. Then you can look towards the franchise, look for something interesting for yourself, read business literature.

Salaried employees who understand that they would have achieved great success in a managerial position are suitable for starting their own business in the same field. Having received all the necessary experience, you can safely "sprout". Get ready for the fact that there will be no super-large projects. For example, I was engaged in PR and I was attracted by the culinary topic. When I began to work for myself, it was not worth waiting for such large clients like Coca-Cola. There are no big names among the product brands that I run, but I do it myself and with great pleasure. It's much more interesting for me than sitting in an agency and running popular brands. "

If difficulties do not stop you and you are confident in yourself, you can move towards your business. And if not, do not despair - perhaps this is not your path, and there is nothing wrong with it. You can test the ability and aspiration for entrepreneurship using the test "": it will show how your strengths coincide with those competencies that the entrepreneur needs.

18 fatal errors start-up entrepreneurs

On our site, a lot has already been said about the specifics of entrepreneurial thinking and many practical advice novice businessmen. And yet we would like to highlight this material. Below we offer a translation of an article by a famous American programmer, professor computer technology Harvard, and one of the co-owners of Paul Graham's venture capital fund The 18 Mistakes That Kill Startups. Although this material is addressed primarily to entrepreneurs starting a business in the field of high technology, it will certainly be useful to any businessmen planning to start their own business.

1. One founder

Have you ever noticed how few successful businesses were founded by one person? Even companies that you thought had a single founder, like Oracle, usually started with a large number of members. This is hardly a coincidence.

What's wrong with one founder?

This often indicates a lack of trust. Perhaps the founder did not suggest any of his friends to start a business together. This is a wake-up call, because friends are the ones who know you best.

And even if all the friends of the entrepreneur were wrong, and the business idea was really worthwhile, the founder is still in a disadvantageous position. Starting a business is too much of an ordeal for one person. You need partners to jointly generate ideas, to keep you from making bad decisions, and to support you in times of need.

And the latter is perhaps the most important. Low starts are so low that few can stand them alone. When a business has several founders, in difficult times they combine will and efforts to survive, no matter what. Everyone thinks, “I can't let the rest down,” activating one of the most powerful forces in human nature. One person is incapable of this.

2. Poor location

Innovative businesses survive in specific locations. So Silicon Valley in America dominates in the number of successful startups over the rest of the territories. Why in some cities new business survives better than others?

Obviously, this is due to the concentration of similar businesses, the support of the industry by the state, a large number of people who sympathize with what you are doing, etc. Who knows what other factors have determined the significant increase in the share of successful business startups per capita in Silicon Valley compared to other places, but this is a fact.

(comm: this factor does not apply much to Russian and especially Rostov reality, but so as not to violate the unity of the article, we did not begin to exclude it from the list).

3. Fringe niche

Most entrepreneurial groups choose marginal niches for business to avoid direct competition.

If you have observed young children playing sports games, you have noticed that children under a certain age are afraid of the ball. As soon as the ball flies in their direction, they instinctively avoid it. The choice of a marginal project on the outskirts is akin to the behavior of young children on a playground. If you know how to do something well, then you will have to face competitors and you must accept this fact.

You can only avoid competition by avoiding good business ideas.

Most likely, artificially lowering one's claims is more an instinctive movement than a conscious choice in favor of safety. Your subconscious mind simply does not allow you to think about great ideas, so as to prevent you from getting involved in high-risk, highly competitive business.

4. Derived idea

Most of the proposals coming from new companies are just imitations of other, more successful companies. They repeat the same ideas and suggestions without improving them. If you look at successful projects, you will notice that none of them was a repetition of an existing business.

Where did these entrepreneurs find ideas? Usually focused on solving a specific problem. Best of all, the one that affects you personally. Apple came about because Steve Wozniak wanted a computer, Google - because Larry and Sergey could not quickly find necessary information, Hotmail - because Sabir Batya and Jack Smith couldn't exchange by e-mail at work.

Do not look for companies that have found a successful solution to a problem - look for problems and imagine what the company should be that solves them. What are people complaining about? What would you like for yourself?

5. Stubbornness

In some areas, the path to success lies in having a clear vision of the goal and steady movement towards it, no matter how long you take towards it. Start-up businesses do not fall into this category. Following a vision of a goal is akin to the Olympics, when there is a specific goal - a gold medal. Starting a business is akin to the science of a tracker looking for tracks and moving along them.

So don't get too attached to the original plan. It is quite possible that he is not correct. The most successful businesses in the finals turned out to be completely different from the original plans. You must be ready to see good idea when she appears. And the hardest part about it is to give up your original idea.

But being open to new ideas must be right. Changing course every week is no less fatal for a startup business. You should always check yourself. Does it represent new idea some progression? If in each new idea you are able to use most of the previously accumulated knowledge and ideas, then obviously you are on the right track. If you have to start from scratch, this is a bad sign.

Fortunately, there are those who can give you good advice - your target audience (customers or users). If the new direction seems exciting to them, and the improvements are interesting, then you are on the right track.

(comm .: we advise you to pay special attention to this advice. It contradicts the classic rules of success too - visualizing the goal and adhering to it unswervingly. But, if you think about it, it is the only true one. The more you delve into the specifics of the chosen business, the more opportunities and new combinations open up before you)

6. Hiring Bad Programmers

Many businesses that went bankrupt in the 90s have collapsed because of bad programmers. A businessman cannot appreciate the professionalism of a programmer, and the best of them are not looking for work and do not want to embody other people's ideas.

How do you choose good programmers if you are not yourself? There is no answer to this question. It would be advisable to contact a good specialist to help you select employees, but how can you find out how good this specialist is yourself?

(comm .: Each business has its own key specialists, the choice of which can cost your business the future. Therefore, if you do not have clear preferences, choose the area of ​​business in which you yourself are an expert)

7. Choosing the wrong platform

Related problem with the previous point: Bad programmers tend to pick the wrong platforms.

(comm .: substitute the term equipment for platform, and the picture will become clearer)

8. Tightening with start

Companies of all sizes have difficulty setting up and launching software... This is typical of the environment - the work always seems to be 85% completed and businessmen constantly delay the withdrawal of the product, justifying the need for testing and revision. The problem is that when the work is 100% done, will it still be relevant for users?

(comment: the same with your super brilliant and mega unique idea. By the time you are finally ready to present it to the public, it is quite possible that someone else will already make a fortune on it)

9. Too early start

The problem with launching too early is that by presenting the raw material to the public, you ruin your reputation. So what is the minimum required to get started?

I propose to think about the task as a whole and isolate a core that will be useful in itself and will organically fit into the completed project. And start by creating that part of the assignment that can be useful in itself. Then even an unfinished program in some way can be really useful to the user.

10. Lack of a specific user image (client)

You cannot create a product without knowing who exactly will be using it. Moreover, your task is to find several representatives of the future target audience and study their opinion of the product.

11. Insufficient investment

The success of most projects depends on funding. All of them have a certain planned launch date during which the business will gain momentum and prepare for takeoff. Once you have an idea and a sample, your task is to convince investors to invest as much money as possible in this project. I advise beginners, having received funding, to try not to spend anything at the first stage, making it their sole goal to create a workable prototype. This way you will be as flexible as possible and ready for new circumstances.

(comm .: remember point 5, it is quite possible that the sample that you create will force you to completely rethink the concept of your future business)

12. Excessive expenses

It is difficult to distinguish between a lack of investment and too much spending. The main way to burn money is to hire too many people. You can give three main tips in this direction: 1) do not hire, if you can get by, 2) strive to pay with stocks and not money, 3) hire only those who can either write programs or attract new customers - this is the main thing you need on this stage.

13. Too much income

Obviously, a lack of money can kill a start-up business, but how can excess money hurt?

The problem is not so much in the money itself as in the changes that accompany it. Investors who have invested money in you will not let you just put the profit in the bank. They will want to put money into development. The office will move to a more prestigious area, new people will be hired and branches created. Now there will be many more founders hired employees. They will not be so committed to the company; they will need to be told what to do.

The larger the company, the harder it is to change course. What happens if you recognize the need for change? Most of your employees will remain with the same vision.

Another problem is time. The more money, the more time it takes to multiply it. As soon as the sums exceed millions, investors become very cautious. You will have to spend all the time in endless meetings with investors, instead of dealing with new projects.

14. Poor investor management

As a founder, you must manage your investors. You should, of course, listen to their opinion, but you shouldn't let them run the company. If they know so well what to do, why don't they start a new business themselves?

How much you depend on an investor is determined by your stake in the company. As long as everything is going smoothly, they may not bother you. But things don't always work out well in business. Too many successful projects have been sunk by the investors themselves. Perhaps the most striking example of Apple's fatal decision by the board of directors to fire Steve Jobs.

15. User donations for (estimated) profit

As mentioned, if you create what the users need, everything will be fine. Don't focus on how to make money. It is much more difficult to create something that will be demanded by consumers. Solve the first problem and then think about how to make money on it.

16. Reluctance to get your hands dirty

Almost all programmers dream of only developing software code, leaving others the dirty work of making money. Running a business? Most would prefer to develop ideas. But no one will believe just an idea until you show the finished product or development.

If you want to attract customers, get up from your computer and try to convince them yourself. This will give you a much better chance of success.

(Comm .: a fairly common situation - a person comes to a venture fund and says: "I have a brilliant idea, give me 80% of the shares of a future company and you can implement it" - comments are unnecessary)

17. Disagreements between founders

Disagreements between founders are fairly common. The exit of one of the co-owners from the business does not always lead to its collapse. Yet most of the future disputes between founders could have been avoided if they had been more careful when choosing a partner in the beginning. Most of the disputes arise not because of the situation, but because of the people themselves, and, obviously, in the beginning, the co-owners suppressed internal resistance to cooperation. Therefore, never start a business with someone you dislike, even if they have a much needed skill.

People are the most important component of a start-up business, so don't compromise.

18. Insufficient effort

Insufficient effort. This is probably the main mistake of starting businesses, which we did not even know about, because the two guys who came up with them were preparing the project after working day and eventually abandoned the undertaking.

If you want to avoid failure, the main thing you must do is give up your other job. If you do not pay enough attention to the preparation of a new project and continue to work elsewhere, you probably deeply doubt the success of the project.

Most of the new projects that could be successful will never be implemented, just because the founders did not put in enough effort to implement them. It is in the maximum intensity of efforts that lies main secret success.

Translation and commentary: Tatiana Nikitina

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