5 Mistakes a Startup Should Avoid and Learn
Numerous Startups are launched every year, but only one-fourth of them manage to survive in this tough business environment in the long run. At the beginning, all the aspiring entrepreneurs are optimistic and enthusiastic about their companies. However, every struggling entrepreneur knows that they need more than just positive outlook to succeed.
Since starting a business requires precision and well-defined plan, even a trivial mistake can lead to failure. So, what are these mistakes and how can an entrepreneur avoid them, to lead its startup to success. Here below are some mistakes a startup entrepreneur can learn from:
“Failure is instructive. The person who really thinks learns quite as much from his failures as from his successes.” – John Dewey
- Lack of Focus & Research: It is important to have a dedication and focus when starting a new business. Novice entrepreneurs have more chances of easily getting distracted. They could end up stressing themselves due to the pressure of carrying out many tasks together which leads to errors. It is necessary to divide each task into small sections and then focus on them separately. Do not think about the next task until the one in hand is finished. Also, conduct a thorough research of your work so as to avoid unwanted expenses, thus increasing the initial cost of the project.
- Underestimating Social Media: Some entrepreneurs do not fully understand the power of social Media. They happen to take it for granted, considering it does not require much effort. But that is a misconception one should avoid before it’s too late. Social Media is the best medium to reach out prospective clients and boost your business capabilities. It is also required to post valuable content on your social media networks like Twitter, Facebook, LinkedIn, etc. and create an audience in the market.
- Hiring too soon: Another mistake is that startups hire too many people quickly. We all know how tough it is to hire and keep the employees these days. Initially, a startup cannot commit a salary at par with other successful businesses. But since people are required to manage the company, they hire. Majority of recruits do not understand the vision of the company in the manner it is expected. Thus, sometimes they are laid-off after an interval of time, which can be quite distracting and painful for the owner. Hence, hire selected number of people that will comprehend the company’s vision.
- Following advice religiously or refusing altogether: It is good to take advice when starting your own business. It offers an insight on what all could be expected. But what one should remember is that advice relates more to an individual business and it may not necessary be applicable on other company. So you have to undertake research on your own apart from the advice you receive. Also, never blindly follow someone else’s advice like the word of God. And, never be so arrogant as to refuse to take any advice. The two extremes can be harmful, therefore, listen to people but follow what best suits your company.
- Fast Scaling: Another factor that affects startups is that they scale too fast. Most of the startups face this situation and end up in a burn-out. As soon as the entrepreneurs raise money, they start spending it quickly on erroneous things like endless marketing or hiring, which may pose a serious problem. It is crucial to determine which aspect is more significant or require dedicated attention currently. It is easy to drain all the money than to raise again. Investors tend to look into the work progress made by a startup before funding.
So, these are some mistakes a startup should avoid and learn from in India, to follow a successful path.