Starting a business requires not only more work but also the best business Strategy. We’ve seen countless entrepreneurs find success where others have found nothing but failure.What wrong with this Scene? What the hell do successful entrepreneurs know about failure?
So what are some lessons for entrepreneurs to keep in mind? Here are the nine Biggest startup mistakes and how you can avoid them.
9 Biggest startup mistakes
Granted, there are probably as many reasons for startup failure as there are startups, but here are nine common mistakes to avoid, along with some hard-earned wisdom from entrepreneurs who know from experience how debilitating those mistakes can be. Let’s Start:
1. Starting Without An Online Presence
This one here could be the first mistake moving forward in the future of business. Nearly every company out there nowadays have some sort of an online presence whether it be a Facebook page, Twitter account, website or domain name & e-mail. If you have none of the before mentioned then you have made it incredibly hard to be found by the rest of the world.
I see too many entrepreneurs using social media the wrong way. They put up a few posts on LinkedIn or send out a few tweets and expect instant results. Think of social media as a crockpot rather than a microwave. It’ll take a while to pay off but when it does, the final product will be excellent.
2. Business Model
A good business plan is a core part of your enterprise, so it must be detailed and scrupulous. Define with your purposes, mission, and potential users; describe every single stage of growth, think about alternative courses of action.
In order to be successful, You need to choose your model carefully. It should be based on an underlying idea and made out of a vague thought. You need to have a plan to execute it and all the sources you need for your model to turn into a reality.
3. Having the Wrong Team
Finding the right team is so, so crucial as an early stage startup. One common mistake most startups make is that they hire teams that are not suitable for the job. Even 23% of founders believe that their businesses failed due to an incompetent or wrong team.
In most cases, such hiring is due to a lack of funds since startups cannot afford to pay fat paychecks. To solve this issue, don’t hire just because you need to fill empty seats. Only hire individuals who are willing to learn and understand your business. And also make it a point to talk to them and polish their skills so they can be an asset to your organization.
4. Hiring Too Quickly
Almost every CEO complains about how difficult it is to hire and retain great employees. The problem is even more difficult for startup founders, who frequently can’t afford decent salaries but need boots on the ground quickly to help them manage all the moving parts at their nascent companies.
Such was the case for Deepti Sharma Kapur, who started FoodtoEat in 2012. The company is an online ordering service that gives consumers access not only to restaurants but also to food trucks and caterers. Restaurants pay the company just ten cents per order. “I was a sole founder, but I knew I needed a team,” Kapur says.
To build her customer base, she quickly hired salespeople but made the mistake, Kapur says, “[of] hiring people who didn’t understand the company or the vision but were just looking for jobs.” The result: Kapur was faced with the painful task of letting people go—a distraction no startup founder wants.
“Now I’m mostly relying on references and talking to people in the industry,” she says about her hiring process. “And the first question I ask is, ‘What do you know about the industry and our company?’” FoodtoEat, which works with more than 900 food vendors and serves corporate customers such as Tumblr, posted $500,000 in revenue last year.
5. Not taking advice
This is the counterpoint to the above point. You can’t expect anything to be handed to you, but on the other hand, going solo all but guarantees failure. Have a mentor. Even if you have no idea who to consult, keep networking, making connections and reaching out to people. You’ll amass a wealth of knowledge and insight as you continue to develop connections that’ll prove to be invaluable time and time again.
Best of all, these connections will directly work wonders for your business. Not only have you learned from vetted entrepreneurs, you’ve built a relationship that’ll continue to grow for years.
6. Having no marketing focus
As you cannot appeal to anyone, you have to find a target audience before launching. Well, your product may transform into something that will fit almost everybody, but at the early stages, you sell to a certain group of consumers.
How old are they? What do they need, prefer and would like to get? Nothing will work until you can answer these questions.
7. Not Knowing Your Market
Who exactly are you targeting? Tech-savvy computer users? Other business owners interested in results and not data? Web-challenged homeowners, who need your caring guidance?
Zeroing in on your niche is a must because your marketing and all other business operations will depend on this key aspect.
Every business owner wants to be their own boss, so heeding sensible startup advice will help you enjoy the benefits of entrepreneurship and avoid the typical mistakes that will slow you down.
8. Avoiding New Technology
As small business owners, technology can provide new opportunities, help us do our work more efficiently and even help us save money. New technology may be intimidating and require time to learn and understand, but an unwillingness to adapt to technological advances can hurt your business in the short- and long-term.
9. Spending Too Much
As most startups have a very limited budget, and many times end up overspending trying to get the work done or hiring the right persons. Overspending can result in the company to make layoffs and ultimately shut down its business.
If you run out of money, you could say either was the cause. The only way to decide which to call it is by comparison with other startups. If you raised five million and ran out of money, you probably spent too much.
Burning through too much money is not as common as it used to be. Founders seem to have learned that lesson. Plus it keeps getting cheaper to start a startup. So as of this writing few startups spend too much. None of the ones we’ve funded have.
Ajay Patel, Founder & CEO, HighQ
“It’s easy to confuse a good idea for a good business. Ideas are a dime a dozen. What turns a great idea into a great business is execution, and a fundamental stage of execution is market research. Skipping research, ignoring the results or forecasting off of inaccurate data can quickly lead to failure. There’s wide scope for mistakes. You may have a great idea but the market may not be quite ready. Or maybe your idea isn’t as original as you thought. The courage to pivot and evolve your idea as market conditions evolve is endemic of execution. Don’t think an idea is all you need to build a viable business. And if you do, at least test that assertion with robust and independent research.”
Mistakes made can be our greatest teacher, so the best startup advice comes from the first-hand knowledge of what not to do. Building a successful company from scratch is a complicated process. More or less often, new entrepreneurs face problems, some of which can kill their business.
Recruitment, management, finance and legal issues can all be problems for entrepreneurs that don’t learn from their mistakes quickly.
What’s the biggest mistake you’ve made with your startup? Share with us in the comments below.