Common Entrepreneurial Traps - Identify and Overcome Them

As a venture capitalist, I have worked with many talented and promising entrepreneurs who fall into common entrepreneurial traps. Here are five common pitfalls that often look good on paper but in reality are fundamentally flawed.

Trap Number One

The big market trap. Some venture capitalists will tell you that the big market is where the money is, and it's the big market they think they can "control." These entrepreneurs usually believe that the bigger their market, the more money they can raise because they're so confident of their marketability. Unfortunately, they usually lose out on a lot of opportunities due to poor timing and poor choice of business model.

Trap Number Two

The one-size-fits-all trap. When you have a business idea, it's easy to just assume it'll work in every niche, but it's not true. Sometimes it works in a few niches but not others, and you may have to tweak the business plan a little bit to adapt to specific markets. Too many times, the "big" business plan simply doesn't work. Many successful business ideas just don't fit into the big "idea" category.

Trap Number Three

The startup capital trap. I see so many people come up with a great idea, pitch it well, and then spend millions of dollars to get it off the ground. After years of doing nothing, and then months or years of spending money to make it work, they finally "crack" and try again, only to lose everything they invested.

Trap Number Four

The one-time-and-done trap. Often, successful entrepreneurs get so comfortable with their business idea that they forget about trying it at all. They start making the same mistakes again and eventually give up entirely.

Trap Number Five

The time horizon trap. Too many venture capitalists make the mistake of assuming that they can quickly raise money for any business venture, and that they won't have to do anything over the next two decades to make money.

These common entrepreneurial traps have been the cause of great disappointment for many people. And I've seen them happen to countless new businesses. myself. They all require some amount of introspection and humility, but the truth is that if you can recognize them early on, you can avoid them and keep on building your business.

As a venture capitalist, one of the most important things you can do is find yourself a mentor or coach who will help you identify and overcome these common entrepreneur traps. This will greatly increase your chances of success.

Traps can be tricky, and you need a good plan to prevent them.

First, if you are in doubt about your business idea, don't risk any money on it. You may have to pay a large sum of money upfront to research it and make sure it has a solid chance of succeeding. However, if you can get a good idea out there, the chance is there that it could be a huge hit.

Second, try to figure out if this trap applies to your business idea. If it doesn't apply to it, move on to the next trap.

Third, if you do think that you've found a strong entrepreneur idea, it's important to find a good coach to help you overcome the traps. The problem with some entrepreneurs is that they're so confident in their idea, that they're afraid to seek help.

Good coaches will show you how to become a better entrepreneur and show you what not to do. Most importantly, they will help you set realistic goals and break your goals down into smaller manageable chunks that you can complete in a shorter period of time. This is important because it's easier to miss small goals than it is to hit large ones.

So, you need to take your time when identifying these traps. But, as you're doing this, you should also do your research. so that you can learn from your mistakes and build on your successes.