By Steve Densley, President, Provo/Orem Chamber of Commerce

J. Willard Marriott once told me that if I wanted to start a business, I should find the best business in that industry and go to work for them. Once I had learned everything that I could, I should then start my own. What he was suggesting was that I should have a great knowledge about the industry I was about to enter.

The following are the most common mistakes that people make when starting a business:

• Inadequate front end planning (no business plan, feasibility study, or cash flow projections). You need sufficient capital for both the startup and the backup.
• Thinking that you can achieve instant success without spending the time and having the long commitment.
• Failure to research the market. Know the market and your competition before you start.
• Underestimating the competition. Whether they're big or small, understand that your competition sees you as another company trying to take money out of their pockets.
• Trying to do everything alone. Work with a banker, accountant and a lawyer.
• Hiring inexperienced people to save money particularly in the area of marketing and sales.
• Inadequate records, financial knowledge and not watching cash flow. Just because you're making a profit doesn't mean you can pay all the bills.
• The false idea that the world will come to you. Your product is not going to sell itself. Never underestimate the power of advertising.
• Assuming that all you need is just a good idea. You need fortitude, financial and moral backing, as well as timing, organization and a bit of luck to be successful.

Small business dominates the nation and certainly is the driving force of the economy in Utah Valley. I love to see people take on the challenge of business ownership and independence. I hate to see people take on that challenge ill prepared to succeed. Don't get caught saying to yourself, "If I had only known."

Steve Densley can be reached by email at: info@thechamber.org.