Combating Entrepre-lusion
Sep 29th, 2008 by admin
There is a frame of mind or rather mindset that seems to afflict unseasoned, first-time entrepreneurs. It’s what I like to refer to as entrepre-lusion; when all the start-up excitement and business newness causes otherwise rational and very smart businesspeople to get a little loopy. You see the “I’m never going to work for anyone again”, “soon-to-be a millionaire because my projections say so” mentality has a way of taking over even the most in-control entrepreneur. This is a very dangerous disease and when left untreated, can cause the death of a business. So how do you know if you’re suffering from entrepre-lusion? Easy. Here are the primary symptoms:
- Overly optimistic and inflated financial projections (particularly sales); the kind that causes delirious laughter and occasional eye squinting.
- Focusing solely on sales; ignoring cash flow which pumps blood through a business.
- Buying foolish and very unnecessary items - also known as projectile spending.
- Not taking precautions for surviving the unexpected. Preventative care is critical.
- Equating sales to profits. Take your medicine, there’s a fundamental difference.
- Believing that your business is viable before launching it. You could be experiencing pre-denial.
- Having no idea where things stand with your business on any given moment. Taking your finger off the pulse.
- Convincing yourself that you are going to be a millionaire in a few short years - again - because the projections say so. Not good. You’re hallucinating.
- Thinking with emotions rather than objections - going with your heart, not your brain (and gut).
- Not writing a business plan or writing one and sticking it on a shelf. This is complete insanity.
If you have one or more of these symptoms, you could very well be suffering from entrepre-lusion. My best advice, take a step back and examine how you have been functioning as an entrepreneur. Seek outside help if you need to - from a mentor, colleague or friend. At the very least recognize that you are on a dangerous path and make some needed adjustments.
Man, I can relate to this post!! In fact my wife would laugh out loud as I’ve had all of these symptoms at one time or another! After lots of medicine (”hard knocks”) I can say that these symptoms rarely show up today. Projections this next year are to be a millionaire!! Oops!