Top 12 Pitfalls of Starting a Business

Unwilling to Be a Salesman

Cheng says of all the successful business owners he's met and advised, those who remain in the game are the ones who are good at selling and marketing. "They ought to take a leadership role even if they hire consultants to help them." Not willing to do the pitch? Then don't hang out that shingle.

Skimping on Staff

How long your company stays around is, in part, determined by the quality of your employees. While hiring part-timers or less qualified people may save money at first, they ultimately become more costly down the road. Why? They may take twice as long to do something or make mistakes that can possibly be damaging. "You get what you pay for here," says Prosen.

Going It Alone

No one is an island, especially when involved in a start-up. Find mentors and tap them for their knowledge and connections. You may avoid more rookie mistakes. Surround yourself with an experienced team of advisers, board members and employees. "Lenders may not like you as an individual but they may like your team," says Prosen, who also wrote Kiss Theory Good Bye (Gold Pen Publishing). "It's important that you lay out clearly for the lender that you've got the talent."

Not Communicating

As the business grows, be sure that new employees are one the same page as you on the company's mission and priorities. For Sydney Price, owner of Manhattan-based play space City Treehouse, that meant writing down everything discussed at the staff meetings, since in just one month it grew from five full-time staffers to eight full-time staffers and four part-timers.

Being Overly Ambitious

City Treehouse's Price says too often entrepreneurs want to get off the ground with a bang. "They want to do everything," she explains. But the object is to be around for the long haul. That's why she had a soft opening, first offering music classes taught in conjunction with Music Together in April. By the summer, she added language classes after partnering with Bilingual Birdies. In the fall, after hiring two full-time people to teach, the space will offer a mix of unique classes and partnered ones.

Crying Uncle Too Soon

Starting a business takes time, passion, sweat equity, luck, the patience of Job, and in many cases, a healthy dose of stubbornness. Even though she faces a lawsuit that threatens her dream, Lampson is determined to hang on.

"When you hit a brick wall, you fight hard until you can get through," she says. "Generally there is a way around. You have to fight and keep fighting."

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