Hi Matias

I have only recently joined, but perhaps you will still find some value in my opinion.

Having been involved in two business startups, by far the biggest lessons we have learned are:

1. Applying the correct marketing strategy

With so much information out there and so much advice coming from all directions, you can work as hard as you want, but applying the wrong strategy will give you zero return. Invest in your education and apply much of your time doing research in finding that method that works for your business.

It goes without saying, build your database!

2. Develop multiple high value products

Without products that add real value to your clients, your marketing can be as good as ever, but your conversion rates will be poor. You will make no $$$.

Concentrate on two fronts: Free value add products and several high value add products to upsell.

3. Passion

Drive your business forward with passion, not by obligation or ANY other reason.

Don’t underinvest in your negotiation skills, you will negotiate day in and day out with your clients and suppliers, sometimes without even knowing you’re negotiation (This will also help the times you’ll find yourself in explaining to you wife/girlfriend why you’re never home, I’m sure you have been there a couple of times).

Apply the 6 principles of persuasion; this will already take you a long way: Social proof, Scarcity, Reciprocation, Commitment & Consistency, Authority and Liking.

Join “The Negotiation Round Table” for FREE at www.negotiationeurope.com. This is a weekly forum that delivers to a global member community the latest trends, strategies, tactics and techniques on the topic of business negotiations.

Not knowing when to stop. When to cease and desist.

Allowing expenses to lead revenue.

Successful entepreneurs don't work in their business, they work ON their business.

I strongly recommend that anyone thinking of starting a company read "The E-Myth". The author points out that most people who start their own business think they are entepreneurs (people who are good at creating a business) when they are actually technicians (people who are good at doing a specific job). As a result, they don't create a business, they create a job that consumes all their time and that basically owns them.

Successful entepreneurs understand how to structure a business so they DON'T have to be there 24/7 in order for the business to work. The ideal is to create a business that runs itself, so you have to put in the time to figure out the org structure and processes that will enable this. At startup the entepreneur is wearing all of the hats, but must learn to hire the right people to fill in the org chart, and who will follow the processes (and help to improve those processes) so that what needs to happen happens. If you can't make the leap from technician to entepreneur, then your business will eventually fail if for no other reason than you get tired of working 80-hour weeks and go back to working for someone else.

A well-run business should not be in crisis mode, shouldn't require a lot of fire-fighting, and should allow the owner to take considerable time off if desired. Otherwise, you don't own the company, the company owns you. How fun is that?

I must say giving up way too early many of them think you will come in and make millions right away however it does not happen right away and they give up.

Assuming that they have ALL the necessary skills to run a startup and build a succesful business.

Cash flow management is the biggest mistake because you can't recover easily from it. I personally know some great guys who could be successful entrepreneurs but will never be successful because they spend too much money in their business.

Another big mistake is hiring expensive people or consultants and expecting that they can magically solve your problems. Often they just add to your costs. Much better to hire people on a results basis wherever possible.

And yet another mistake is thinking that your "big idea" is really great without testing it in the market place. Some companies spend years developing a product and then launch it and it's a total flop. Customers don't want it!

Speaking their mind.

Hands down the biggest mistake:

Not finding a customer/client who is willing to buy your product/service before you ever launch it.

I've seen many startups tank because once they launched, they finally found out no one would buy their service or product..

Choosing to be an entrepreneur ;)

Choosing a niche that is not big enough.

If you get this one wrong then a domino effect follows. I repeatedly see entrepreneurs picking niche's that are too small or saturated. Doing your market research upfront and picking the right niche can be the difference between a success and failure.

1. False assumptions, and any activities that lead to them. (Listen to your users/customers)
2. Burning capital faster than you can make it without one helluva plan or revenue stream in place.
3. Borrowing too much outside capital and losing control of the business (puppet strings), Felix Dennis would be proud.

Just a heads up, I'm still in the pre-corporate entity startup phase. I've been fortunate enough to have the time to learn as much as I can about the process in the last year or so as possible (while working/writing).

Not to focus on one thing

The biggest mistake of any entrepreneur is when he becomes complacent and assume that his under commands will take care of his business and he shows lack of attention and interest in putting extra efforts to make business successful that is when his downfall starts. His profit declines and as a fallout he lose money.

i guess the one that you learn most from and never forget

Being too reserved and waiting for "the right idea" before releasing a product and running with it