Creating a business can be one of the simplest things you can do, or one of the hardest. Determining the level of success you want will however require you to make some hard choices. Among the greatest follies I see people making when they set up a business:
1. Preparation: Diminishing the importance of developing a business plan or a business due diligence study. I find there are people whom are anti-conceptual. They look at university graduates and think they are 'too intellectual', and think life is about action. I would suggest Asian cultures such as the Chinese tend to act like this. eg. The way Chinese invest in businesses, its like throwing darts in the dark. I think its more about relationships, egos and deal making than it is about making money.
2. Disciplined: Not treating the business like a business - treating it more like an indulgence. They say that you should find your passion and turn it into a job. The problem is that most passions still require you to perform accounting, administrative and other tasks.
3. Contingency Planning: Failing to conserve their capital - living like their is no tomorrow - thinking they will make a profit in the first month. Its not even just about preparing for the worst, as if the worst depends only on you, it can also be a case of failing to plan for success. Cashflow problems can result because of success as much as failure, if only because customers decide to take a long time to pay your invoices.