Most entrepreneurs fail to treat their capital as an important and necessary asset. It is the grease that lubricates the gears that run your business. You'll either run out of cash before turning the corner, or you'll start to succeed while lacking the capital to meet growth pressures. Either way, the end result is the same. When your customers pay you at a slower rate than you pay your suppliers, you'll always be in financial trouble.
Most entrepreneurs create overly optimistic sales projections.
Capital may be tough to raise, but it's always easiest to raise the first time around. Trying to go back to the financial well when you haven't met projections is a sure-fire recipe for rejection. When you secure adequate capital, spend it wisely, making sure you receive a maximum return on each dollar spent. No strategic planning . If you don't know where you're going, any road will get you there.