Entrepreneur Awards by Sacramento City Council
The Sacramento City Council recently voted unanimously to award about $970,000 in public funds to 15 winners of the first annual RAILS program (“Rapid Acceleration, Innovation and Leadership”). The money was given to several programs that are designed to support local technology startups and give young people and underrepresented groups with the skills necessary to become entrepreneurs.
Entrepreneurs face all sorts of challenges, and these grant winners—along with all new business owners in northern California—need to be careful to avoid mistakes. Let’s look at a few:
Purchasing a job instead of a business.
Of course, you’ll need to be involved in the daily operations at the beginning, but your goal is to grow your business into much more than a job where you go to work every day. You want to work on the business, not just in the business.
Being a star baseball player but having no idea how to manage a team.
This is common… a great coach isn’t always the best player and vice versa. Your job is running the business not just making sales or repairing carburetors. In fact, each of your past jobs is part of an apprenticeship program to running your own business. But be an apprentice in all areas and learn the entire operation.
Taking on a business partner.
It’s not uncommon for people to give away some of the equity upfront to a partner. This might work out fine, but a smarter way to get assistance is to hire people to help you. That way, you maintain control of your company and the profits.
Trying to compete on only price.
This will land you a quick trip to bankruptcy. You’re in business to make a profit—reaping less revenue with a larger profit margin will always be better than getting tons of business but earning almost no profit. Understand how marketing and sales work so you can avoid pricing wars.
Employing low cost workers.
You know the saying, “You get what you pay for.” Make sure that you hire the right people because it’s crucial. Don’t just hire anyone—wait until you find the right fit.
Concentrating on just one aspect of your business.
A successful business involves sales and marketing, finance and administration, and the business operations. You need to keep all three working and growing in unison, not just the area with which you have experience.
Entrepreneurs who fail to measure.
You must have a firm grasp on your numbers—you can’t manage what you don’t measure. You should be measuring everything from your first day of business with a system or software that will give you up-to-date reporting and analysis.
Doing the project once and getting paid once.
A major component of the success of your business is to do the work once but create a long-term business relationship with customers that makes you money.
An another big mistake that Andrew sees is an entrepreneur starting a business from scratch instead of purchasing an existing company. It may look like less expense to starting from ground zero, but it can cost a lot in time, energy, and anguish. It’s much wiser to buy an undervalued company, and build it up.
Andrew is a business expert and has negotiated hundreds of business transactions in cities throughout the Sacramento Region. He’s worked with business owners and entrepreneurs in Citrus Heights, Rancho Cordova, Folsom, Elk Grove, Roseville, Rocklin, Davis, El Dorado Hills, and Cameron Park. Andrew can help you with your thought process on deciding on an appropriate enterprise and guiding you through the process.
Take the time to speak with professional business broker Andrew Rogerson. He knows about businesses throughout the Sacramento Region. Please visit our website services. You can also contact with Andrew via email or call him at (916) 570-2674.