Today, let us go through the final episode of this 7 Biggest Mistakes of Business Startup

Mistake 6: Blowing through your capital. “New business owners grossly underestimate their financial needs,” says Isidore Kharasch, president of Hospitality Works, a food-service consulting firm based in Deerfield, Ill. Typically, inexperienced owners overspend at the outset, buying more furniture, technology and office supplies or hiring way too many executives or experts than they really need to get up and going.

New owners also don’t realize that few customers pay promptly. So even when sales are immediate, cash is often tight.

After developing personal and business budgets that can sustain the company for the time you think it’ll take to get to break even, add at least 50%, suggests John Reddish, a management consultant who specializes in growth. “That’s managing your risk.”

Lesson: Don’t be rash with cash.

Mistake 7: Overlooking your loved ones. Startups demand 80- to 100-hour workweeks and serious support systems. They also “require significant time commitments and financial sacrifices, both of which can strain a relationship,” says Victor Sim, a lawyer at Squire, Sanders & Dempsey in Los Angeles.

That commitment isn’t yours alone. You need ongoing buy-in from family and friends. Make sure your time and money also is spent on family or a significant other.

Lesson: Don’t let a launch cause lifelong regrets.

In the end, many missteps occur because new owners insist on doing everything themselves. Instead, review what you do best and try to delegate or outsource the expertise you lack. And when the inevitable errors do arise, remember the old adage: Learn from your mistakes. However, let us sum up this series:

    Lesson 1: Don’t quit your day job without a plan.
    Lesson 2: Don’t sell diamonds for the price of a rhinestone.
    Lesson 3: Don’t start a business to find life on the edge.
    Lesson 4: Don’t try to close deals before getting out your message.
    Lesson 5: Don’t abdicate authority.
    Lesson 6: Don’t be rash with cash.
    Lesson 7: Don’t let a launch cause lifelong regrets.

There you are. Good Luck!

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