Over at Employee Evolution, Natalie discusses common mistakes people make when starting a business.  According to the U.S. Small Business Administration, over 50 percent of small businesses fail in their first year and 95 percent fail within the first five years.  Among the mistakes, and Natalie’s tips:

1. Business owners don’t create documented procedures for the day-to-day operation. A “working procedure” is a documented description of how to perform a task. Having it prevents random problems and ensures the task is performed exactly and consistently. Procedures help you delegate, improve your scheduling ability, and allow you to work smarter and accomplish more with less effort.

2. Owners don’t delegate – they are doing the work. The reason a business owner can work a few hours a week, or take an extended vacation without stress, is because they have created systems, implemented written procedures with supporting documentation, and have learned to delegate. Ask yourself what you enjoy doing least for your business. Then, imagine literally giving away these tasks. Get rid of the “I am Superman” attitude and hire people who are trustworthy and qualified to take much of the weight off your shoulders.

3. Owners don’t use time wisely. People function at maximum effectiveness about six hours out of a 24-hour day. It is important to understand this interesting facet of human performance, determine precisely when your prime time occurs, and then use it wisely. Also, don’t start your day without a to-do list. Make a list of tasks and categorize them into business-building activities, client activities, and personal items. Then, prioritize, remove distractions, delegate, and stick to your plan.

4. Owners don’t have a strategic objective or set of operating principles. A strategic objective is short, usually a single page in length. It defines overall goals, describes methodology, and prescribes action. It gives direction for making major and minor decisions. General operating principles are a two to three page collection of “guidelines for decision making” that are congruent with the strategic objective.

Many of my interviewees for How’d You Score That Gig? also mentioned these pitfalls and offered similar recommendations.  There’s no doubt about it – owning a business is hard work, but if you go into your venture with your head on straight, you are more likely to come out on top.