So after 20 or so years working your ass off from rank-and-file to corporate macho, you finally have the capital to start your own business. A lot of people are just like you. Raring to go to finally create a booming business that’s all yours. And yet so many fail. Why? Here are common traps and pitfalls that usually plague first-time entrepreneurs.

Not being independent. This is especially true of most entrepreneurs who come from a corporate background. You might be too used to the life of being in a large organization. You have a pool of financial and manpower resources. Remember that you have limited money and most of the legwork you have to do yourself. So get up and move around because you can’t just always page people.

Choosing the wrong bank. If you don’t have the support of big financiers such as venture capitalists, then the bank might just be your best friend. Community banks may be convenient but if the bigger banks and branches downtown might be more confident to lend you money. So if the downtown banks aren’t a big hassle to visit, then drop by for a visit.

No business plan. Can’t really stress this portion that much. If you don’t have any plan at all on how you’d get your business off the ground then stop and rethink your options. You might just be blowing your capital in a venture that won’t click.

No legal advice. Again, if you come from a corporate background, you might have your crack team of lawyers to sort things out for you. Small as your business is, you will have some legal issues to deal with. So lawyer up.

Too much independence. Yeah, so this runs quite contrary to the first item but let us qualify. Concentrate an expert on your background. If you need people then hire them or take them in as consultants. Don’t pretend to know everything and don’t even try doing everything by yourself. If you do, you might just overstretch yourself to the point of ineffectiveness and your business won’t fly.