Startups have the potential of obtaining rewards that most of the well-settled businesses can’t even imagine. But stories of all the startups are not same. We have seen many promising startups sink just after they left the shores or entered the deeper waters in the business.
Particularly in the last decade, we have witnessed startups emerging at a pace like never before. The only thing that separates the successful ones from the doomed ones is ‘the mistakes committed by the entrepreneurs’.
In the real world, perfection does not exist and mistakes are inevitable. But some startup mistakes are bigger than other mistakes and they are so dreadful that their occurrence means the finale for the business. Here is a list of the startup mistakes that you must avoid.
5 Startup Mistakes #1. Under(or Over)estimating Your Startup
In simpler terms, when you do not know the worth of your startup, all your decisions are likely to go wrong. The status of your business that you present to clients, sponsors, employees, etc. may vary to get the deal done in your better favor. But you must always be aware of the ground realities of your startup.
New entrepreneurs often consider their products weaker than existing competitors in the market. Fear of being crushed under becomes the stumbling block in the path to success. This pessimist approach makes the possible big shot appear as a big risk and hence, overall business is not able to deliver the best it can.
At the same time, those willing to play out of their skin may end up bruised. Fetching the deal that requires more than delivery abilities of your startup can bring serious penalties. “Fake it ‘til you make it” is a not a good option to go with at the start of the business. Conclude it as- optimism is good but greed is not.
The safe and better side is being awake to your potential. Set your targets on the basis of quality and quantity factors of your production team. Now, approaching and convincing the clients and the sponsors will get easier, because you true and hence, more confident.
5 Startup Mistakes #2. Forgetting the Speed Limits
In an attempt to make the best from the market, entrepreneurs try to launch their startup when the market is in fighting fit conditions. Since the demand is high and with some innovative features, startups can initiate with the rocket-propelling pace.
Most startup entrepreneurs are able to make use the good conditions and hit the gas while going with the flow, but when they face a steep road to climb there is no fuel left.
Market conditions fluctuate and the entrepreneur has to keep the plans ready for all situations. Grow your network with business. Be an active member with some business accelerators and incubators programs, so that you could get the support during the hour of need. Try out some partner plans to ensure that you have several ways of finding the customer, even when crisis prevail in the market. More importantly, manage the resources and funds wisely.
5 Startup Mistakes #3. Pampering Marketing More Than Quality
Marketing is the strength of the business and most of the entrepreneurs are aware of this business rule. Smart entrepreneurs are able to execute the marketing plans even before the startup starts operating. During this act of smartness, their concentration over the quality of the products and the service is diminished. It is the easiest mistake to make and also the worst.
With the initial clients that you earn with the startup, you set up the reputation of your business. Their positive reviews are very, very important and anything less means a serious blockage. All your marketing efforts can go down the drain if the reviews of the products are not in your favor.
Concentrating more on the quality first and then promoting with the positive reviews sounds like a better plan.
5 Startup Mistakes #4. Technical Glitches
Today, technology serves a big portion of your startup needs. Some of the basic requirements include client email, data storage, online marketing, and development platform. Depending on what your startup exactly deals with, you will find more of these needs making guest appearances. Computer, internet, cloud service, etc. will assist you on most occasions and outage or anything similar can put things on hold.
Citing the budget limitations, entrepreneurs compromise with the quality of the equipment being used and then end up with a huge loss. Do not go for a ‘fix’ instead find a reliable ‘solution’. It is important to go with the reliable technologies not only for the physical hardware, but also for the software, internet connections and hosting services.
5 Startup Mistakes #5. Negligence with Networks
Human is a social animal. Your close relatives, distant relative, friends, friends of friend, neighbors, LinkedIn and Twitter followers, ex-colleagues, current colleagues, members of your social club and anyone who has ever shaken hands with you can be a potential client, partner, promoter, employee, and investor. In most cases, they are more trustable than someone you find over web portals.
They are always available. But, you do not need to read out your product brochure to everyone you meet. All you need to do is identify those who can add value to your business. Interact with them about it and simply grow your business.
It comes as the cheapest and most substantial marketing (and advertising) strategy. Along with that, you can find the reliable pieces of advice and tips. With luck, you may even find a mentor for long-term business benefits.
Not registering the patents, hiring of non-performing employees, etc. are some more additions this list can afford to add. The life of an entrepreneur looks impressive and easy from the exterior. But it demands some great doing to earn and maintain the success as an entrepreneur. The startup phase is toughest phase for entrepreneurs in many ways. Smallest of the mistakes can prove to be the blunders. So, every action must be taken with extreme caution.