Entrepreneur Randy Minchew: listen to what the numbers tell you or else

Entrepreneur Randy Minchew posted on the My Venture Pad blog some lessons he has learned from his own mistakes ("Mistakes From Past Ventures I Won't Be Making Again"). Here's a taste:

Lesson 1: Respect the numbers.

I used to rely on my intuition too much when it came to pulling the trigger on a deal. What I found was that, while my intuition is great for helping me employ the right people, it’s not enough to make financial decisions.

A great example was when I started a restaurant. My wife (and business partner) told me that, based on the startup costs, our new restaurant would have to serve 800 people a day in order to make a profit. I promptly told her to stop being negative and explained that I had a gut feeling that we could make it work. The business went bankrupt in two years. I now have a great respect for the numbers (and others’ input!).

Minchew also offered some advice for others, which I wholeheartedly agree with:

People make mistakes in many of their everyday ventures; it happens. The important part is applying the lessons that you learn from these mistakes and considering them in future initiatives. And while you’re at it, don’t be ashamed to share them with others. You might save them from sharing in the same frustrations.

The act of sharing mistakes with others so they can learn is one of the main points of this site. Thanks, Randy, for sharing yours.

You can read his entire post here.