30#Most#Common#Mistakes#of#Entrepreneurs#!!Author:!Eva!Hukshorn!#

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2#

1.  EFactor#is#a#Smart!Network!that#matches#entrepreneurs#with#the#very#people#who#can#help#them#grow#

2.  Finding#Business!Partners:#from#partners#to#investors,#from#coaches#to#customers#

3.   Largest!Entrepreneurial!Network!in!the!World#with#1mio#members#in#185#countries#

4.  An#online#community#Offering#you#a#network,#knowledge,#events,#and#every##business#resources#you#need#to#succeed#@#discount!#

5.   GO!Online,!fix!your!personal!profile!&!company!profile!and!get!MATCHED!!

It’s!not!about!connecPons!Q!it’s!about!the!right!ones…!

Eva#Hukshorn:#An#introducJon#

•  Work!Experience!-  Current: # #Partner#EFactor#

# # #Board#of#Advisory:#TreFoil#Energy#/#CleanDrinks#/### # #Global#Thinkers#/#ShowLinq#

## # # #Coach#Startup:#Bootcamp#Amsterdam#/#New#Venture#McKinsey#-  2009#–#2010: #Dutch#BouJque#–#Marktlink#Mergers#&#AcquisiJons,#Amsterdam#-  2007#–#2009:# #Royal#Bank#of#Scotland#–#Corporate#Finance,#Amsterdam#-  2004#–#2009:# #ABN#AMRO#–#Corporate#Finance#New#York,#Amsterdam#-  2003#–#2004:# #Accenture#–#ConsulJng#London,#Amsterdam#

•  EducaPon!-  1997#–#2002: #MSc#Economics,#Finance#–#University#of#Groningen,#the#Netherlands#-  2003:# # #InternaJonal#&#Asian#Studies#–#NaJonal#Sun#Yat`Sen#University,#Taiwan#-  2009#–#2011:# #CerJfied#Management#AccounJng#(CMA)#–#InsJtute#of#Management#Accountants##

# # # #(IMA),#United#States#-  2009#–#2011:# #Colloquium#General#&#Modern#Art#–#Academy#for#History#of#Art,#the#Netherlands#-  2012: # #InternaJonal#Financial#Report#Standards#(DipIFR)#–#AssociaJon#of#Chartered#CerJfied#

# # # #Accountants#(ACCA),#United#Kingdom##

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3#

FUNDING#TUESDAY,#EVERY#TUESDAY#

So!what!can!you!expect!from!us!each!Funding!Tuesday?!

1.   Webinars#on#EFactor#on#Finance#&#Funding#related#topics#in#the#EVENT!SecJon#

2.  Blogs#&#interviews#with#informal#investors#and#funded#entrepreneurs#with#Jps#&#tricks#in#the#BLOGS!secJon#under#NOW!

4#

3.  Finance#&#Funding#related#arJcles#on#NOW!feed#

4.  In#the#Finance#&#Funding#GROUP!on#our#website#you#will#find#Q&As#of#the#webinars#under#NETWORK#

5.  In#the#KNOWLEDGE!base#you#will#find#more#and#more#presentaJons#on#Finance#&#Funding#related#topics,#including#the#webinar#presentaJons#

6.  And#if#you#become#a#VIP!MEMBER!you#will#personally#be#supported#on#your#Finance#&#Funding#related#quesJons!

Webinar#Program#Overview#2012#

June#19:# #Business#Plan#WriJng#`#A#Roadmap#to#Success#July#3:## #Pitching#&#PresentaJon#`#3#Minutes,#1#Impression#July#17:# #Strategy#`#A#Vision#for#the#Future,#A#Strategy#for#Gehng#There#July#31:# #BudgeJng#&#ForecasJng#`#PredicJng#the#Outcome#Aug.#14:# #Working#Capital#`#An#Unknown#Key#to#Success#Aug.#28:# #Capital#Management#`#Playing#with#Risk#Sept.#11.:# #Funding#&#Investments#`#Some#Sources#are#More#Equal#then#Others#Sept.#25:# #ValuaJon#`#Art#or#Science#Oct.#9:# #Exit#Strategy#`#Nice#to#Have#or#Need#to#Have?#Oct.#23:# #Bootstrapping#`#An#AlternaJve#Answer#to#Funding#Nov.#6:# #Crowdfunding#`#The#Power#of#Friends,#Family#and#Fools#Nov.#20:# #Networking#`#Nice#You#have#3000#Friends,#I#have#30#Relevant#ConnecJons#Dec.#4:# #MarkeJng#&#(Social)#Media#`#Noise#or#Value?#Dec.#11:# #No#Sales,#No#Glory#Dec.!18:! !Most!Common!Mistakes!of!Entrepreneurs!

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6#

Mistake#1:#Becoming#an#entrepreneur#for#all#the#wrong#reasons#

•  Think#about#it#before#you#start#

•  Entrepreneurial#life`style#

•  Discuss#with#your#direct#

environment#

•  Serious#financial#consequences#

•  Not#temporary#

•  Follow#your#dream#

Key!Points!

Make!a!raPonal!decision!about!taking!this!step!

7#

Mistake#2:#No#vision,#no#focus#

•  No#vision#

•  No#mission#

•  No#path#

•  No#goal#

•  No#plan#

•  No#relevance#in#your#daily#to`do#

•  No#focus#

Key!Points!

There!is!no!elevator!to!success,!you!need!to!take!the!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!stairs!!one!step!at!the!Pme!

8#

Mistake#3:#No#business#plan#

•  Define#your#idea#

•  Do#research#

•  Create#a#Business#Plan#

•  Know#your#target#customer#

•  Test#the#market#

•  Reinvent#yourself#constantly#

•  Focus#on#bigger#picture#

Key!Points!

Every!major!decision!in!your!life!takes!planning,!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!becoming!an!entrepreneur!is!a!major!decision!

9#

Mistake#4:#Unlimited#growth#opportuniJes#

•  Research#market#

•  Understand#needs#target#group#

•  Divide#target#groups#in#Jer#1#&#2#

•  Beta#test#product##

•  Understand#price#elasJcity#

•  Understand#regional#&#other#

boundaries#

Key!Points!

Understand!your!boundaries!

10#

Mistake#5:#Too#niche#

•  Picking#small#markets#

•  Avoid#compeJJon#

•  Sense#of#control#

•  No#money#can#be#made#

•  What#should#others#start#up?#

Key!Points!

Understand!your!boundaries!

11#

Mistake#6:#CompeJJon#is#not#relevant#

•  Market#research#

•  Part#of#you#business#plan#

•  Beker#understanding#of#

customer#&#product#needs#

•  Don’t#invent#the#wheel#

•  Global#compeJtors#can#be#

regional#supporters#

Key!Points!

Be_er!well!stolen!than!badly!conceived!

12#

Mistake#7:#Not#knowing#your#customer#

•  Research#you#customer#

•  Understand#needs#

•  Know#them#by#name#

•  Customize#products#at#start#

•  Feedback#is#best#input#

•  Friends#&#Family#are#not#

customers#

Key!Points!

Focus!on!customers,!not!compePtors!

13#

Mistake#8:#No#validaJon#of#the#product#

•  Great#product#but#no#customers#

•  To#afraid#to#ask#money#

•  Not#sustainable#

•  ValidaJon#of#products#means#

generaJng#revenue#streams#

Key!Points!

Free!is!not!a!business!model!

14#

Mistake#9:#The#“kinder`überraschung”#effect#

•  Too#much#product#development#

•  No#sales#

•  Feedback#valuable#for#effecJve#

sales#&#logisJc#process#

•  Pareto#80`20%#rule#

•  Focus#on#sales#from#start#

•  Customize#in#beginning#

Key!Points!

Launch!your!product!when!80%!ready,!the!other!20%!comes!from!feedback!of!customers!

15#

Mistake#10:#Wrong#Jming#of#launching#

•  Too#quick#can#ruin#reputaJon#

•  Too#slow#can#disconnect#you#

with#customers#

•  Force#yourself#to#launch#

•  But#do#it#planned#

•  What#is#the#minimum#that#

should#be#done#

Key!Points!

Ready!to!launch?!Have!a!clear!countdown!

16#

Mistake#11:#No#idea#of#your#needs#to#succeed#

•  Create#a#milestone#overview#

•  Define#what#you#need#to#do#to#

reach#each#milestone#-  funding#needed#-  contacts#needed#-  other#crucial#needs#

Key!Points!

What!does!it!take!to!be!successful?!

17#

Mistake#12:#Forgehng#to#execute#

•  Idea#needs#to#be#developed#

•  ValidaJon#create#value#

•  ValidaJon#needs#business#

structure#

•  ExecuJon#is#key#

Key!Points!

An!idea!is!worth!nothing!without!execuPon!

18#

Mistake#13:#CreaJng#too#large#budgets#

•  Create#a#budget#before#you#start#

•  Down#&#upside#scenario’s#

•  Calculate#yearly#funding#needs#

•  Think#about#ROI#overall#and#per#

project#/#business#unit#

•  Always#bootstrap#

•  Be#in#control#

Key!Points!

Being!an!entrepreneur!is!not!the!same!as!being!a!celebrity!

19#

Mistake#14:#Forgehng#to#bootstrap#

•  Be#creaJve#

•  Funding#from#own#funds#&#FFF#

•  Organic#growth#through#revenue#

•  Services#/#consulJng#businesses#

•  Lean#&#mean#

•  Delays#in#development#

Key!Points!

Bootstrapping!is!not!a!way!of!funding!your!business,!it!is!a!mentality!

20#

Mistake#15:#CreaJng#too#small#budgets#

•  Create#a#budget#before#you#start#

•  Down#&#upside#scenario’s#

•  Calculate#yearly#funding#needs#

•  Think#about#ROI#overall#and#per#

project#/#business#unit#

•  Always#bootstrap#

•  Be#in#control#

Key!Points!

Growth!cost!money!

21#

Mistake#16:#Thinking#you#will#be#the#next#Mark#Zuckerberg#

•  Be#realisJc#on#forecasts#

•  Calculate#downside#scenario’s#

•  No#hockey`sJck#growth#forever#

•  Know#your#limits#financially,#

personally#&#operaJonally#

•  Create#SWOT#analysis#

Key!Points!

Set!expectaPons!realisPc,!but!remain!opPmisPc!

22#

Mistake#17:#Using#all#your#last#financial#resorts#

•  Don’t#spend#it#all#at#once#

•  Be#care#with#involving#Friends,#

Family#Fools#

•  Make#a#personal#financial#

planning#before#starJng#

•  Define#your#financial#limits#

•  Hold#on#to#your#equity#

Key!Points!

Use!your!money!wisely:!determine!your!limits!before!you!start!

23#

Mistake#18:#OveresJmaJng#your#leadership#skills#

•  Building#is#leading#

•  Engaging#ahtude#on#all#levels#

•  Don’t#micro#manage#

•  Be#paJent#

•  MoJvaJon#is#key#

•  Be#a#manager#from#the#start#

•  Otherwise#leave#HR#to#others#

Key!Points!

StarPng!up!a!company!is!about!leading!people!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!through!the!darkness!with!just!one!torch!

24#

Mistake#19:#Talking#to#much#

•  Especially#younger#people#talk#

too#much#

•  Sales#is#about#listening#

•  More#respect#

•  Most#communicaJon#is#

unspoken#

Key!Points!

Building!respect!is!about!shucng!up!and!listening!

25#

Mistake#20:#Doing#everything#yourself#

•  Delegate#to#grow#

•  All#jobs#in#one#in#beginning#

•  Low#difficulty#level#at#start#

•  Know#what#you#are#capable#of#

•  Details#are#for#specialists#

•  Calculate#cost#prices#

•  Remain#focus#on#bigger#picture#

Key!Points!

Focus!on!bigger!picture!and!leave!details!to!specialists!

26#

Mistake#21:#Bad#programmers#and#wrong#plavorms#

•  Programmer#build#your#

infrastructure#

•  Bad#plavorms#lead#to#bad#

business#

•  Next#to#sales,#they#are#probably#

the#first#you#need#to#hire#

Key!Points!

Programmers!are!key!personnel!

27#

Mistake#22:#Building#teams#with#the#same#type#of#people#

•  Too#focus,#too#much#work#leads#

to#blindness#for#hurdles#

•  Be#open#for#honest#feedback#

•  Conflict#is#ok#

•  Deal#with#conflict#&#feedback#

•  Trust#is#key#

•  Complementary#skills#in#team#

Key!Points!

Don’t!surround!yourself!with!“YesQMen”,!you!need!people!you!can!rely!on!when!Pmes!get!tuff!

28#

Mistake#23:#Building#teams#with#friends#

•  Friends#are#not#necessary#good#

business#partners#

•  Competence#more#important#in#

business#

•  Trust#

•  Harder#to#provide#feedback#

Key!Points!

If!you!can’t!fire!them,!don’t!hire!them!

29#

Mistake#24:#Maintaining#equal#partnerships#

•  Divide#shares#equally#at#start#is#

common#

•  Doesn’t#help#with#disagreement#

•  Different#ideas#

•  Define#a#leader#to#hold#on#to#the#

vision#and#focus#

Key!Points!

There!can!only!be!one!captain!on!a!ship!

30#

Mistake#25:#Stop#maintaining#&#building#relaJonships#

•  Networking#is#key#when#starJng#

•  Work#overload#leads#to#defocus#

•  Don’t#forget#to#pitch#

•  Networking#is#part#of#your#to`do#

•  Keep#in#touch#with#relaJonships#

•  “Nice#you#have#3000#friends,#but#

I#have#30#relevant#connecJons”#

Key!Points!

Networking!is!the!reason!your!start!was!successful,!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!it!will!also!be!the!reason!to!conPnue!to!be!successful!

31#

Mistake#26:#Moving#into#grey#areas#

•  Times#get#tuff#

•  All#is#fair#in#love#and#war#is#not#

true#in#business#

•  Protect#your#reputaJon#

•  Be#clear#on#norms#&#values#

•  Communicate#from#the#start#

•  Act#when#necessary#

Key!Points!

Always!walk!a!straight!line!

32#

Mistake#27:#Thinking#only#1#way#leads#to#Rome#

•  What`if#scenario’s#

•  Create#buffers#in#Jme#and#

money#

•  Plan#

•  But#be#dynamic#

•  Be#sensiJve#for#warning#signals#

Key!Points!

Have!a!plan!B,!C!and!D!

33#

Mistake#28:#Picking#a#bad#locaJon#

•  Some#places#are#beker#then#

others#

•  Differs#per#industry#and#country#

•  Start#where#the#experts#are#

•  Start#where#customers#are#

Key!Points!

LocaPon,!locaPon,!locaPon!

34#

Mistake#29:#Legal#problems#do#not#solve#themselves#

•  Costly#&#Jme#consuming#if#not#

dealt#with#properly#

•  Legal#decisions#at#start#

•  Influence#future#course#of#

business#

•  Hire#skilled#lawyer#experienced#

with#entrepreneurs#

Key!Points!

Deal!with!it!now!

35#

Mistake#30:#Forgehng#the#bigger#picture#

•  Plan#before#you#start#

•  Create#a#5`year#plan#

•  3#milestones#+#18#months#to`do#

•  Assess#frequently#if#you#are#sJll#

on#the#right#track#

•  Work`life#balance#will#enhance#

success#

Key!Points!

Work!hard,!play!hard!but!never!forget!to!focus!

36#

Conclusion#

4#addiJonal#webinars#in#2013#in#this#series#

Jan.#8:## #Strategy#`#A#Vision#for#the#Future,#A#Strategy#for#Gehng#There#Jan.#15: #Personnel#–#You#Have#Got#to#Love#Them##Jan.#29: #InnovaJon#–#Blockbuster#or#Ghostbuster?##Feb.#12: #Sustainable#Entrepreneurship:#Lean,#Mean#&#Green###Several#webinars#on#Crowfunding#including#panel#

37#

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38#

HTTP://WWW.EFACTOR.COM/VIP!

Thank!you!!!

This!document!was!prepared!and!wri_en!by!Eva!Hukshorn.!Several!people!and!organizaPons!

have!inspired!her!to!write!this!presentaPon,!amongst!which!are,!but!not!limited!to!the!

Founders!of!EFactor!