Planning to follow your startup dream? Start with a word of caution!
It has been noted that 75 out of 100 startups fail within the first five year of their inception since they are destined to fail. Reasons vary from setting unrealistic goals to making game-ending mistakes like hiring people blindly or daydreaming about venture capital than focusing on the core business activities.
Learning from another’s mistakes is a good way to advance cautiously in life. Before setting up any business one must look into some common startups mistakes often made by entrepreneurs.
To overlook simplicity:
Entrepreneurs’ mind is often plagued by a single thought that success in business means something far from simplicity. Though it is not the case each time, there are a plenty of successful startups or business that have been built on already existing concepts. If the idea is simple and effective, then what’s the need to complicate it? But still, people do that to mark themselves out of the crowd and it is sure shot one of the common mistakes of startups. Budding startups should always keep their options of finance, planning and hiring etc simple.
Thinking too much about VC:
Once the idea struck, people begin the search for venture capital. Funding doesn’t come easily, as investors aren’t fool to get deceived by your presentation charm. Rather successful funding happens to those who are almost half way reaching their goals. Granting of funding instills a factor of credibility among users and in the market, but wasting too much time on VC options can debilitate your efforts towards the main goal.
Hiring employees for everything without giving a serious thought leads to repentance later, as funds begin to exhaust faster than planned. Remember, not every business needs an army of accountants, HR representatives and towering managers. Rather work on resource utilization and seek people who can wear many hats to perform the tasks.
Lack of Focus:
It has been seen that startups plan a lot of things in advance and want to do 360 degree marketing and promotions for their product. However the only hindrance is that their core or main products are ever late or keep changing quite often. At times, they never come up also. Here the common mistake of startups is that people think first as how to make their products successful, rather than creating them enthusiastically.
When the first copy of a product or service is sent outside to the users, startups often fail to take the testing feedbacks seriously – another startups mistake. They either leave the product halfway thinking it too much or do not input any changes suggested by users. This happens primarily when makers stick to their rigid mentality and over optimize on a single decision. A product should be flexible enough to meet customers’ needs irrespective of the fact whether it is from a startup or age-old company. That’s none of their concern.