Many would-be and failed entrepreneurs will agree that conceptualizing an ambitious startup that’ll become the next Google or Microsoft might be the easiest thing in the world. It is only when you venture into the big bad world of commerce that you start feeling the heat and facing the music. Having a grand idea is like taking the first baby-step in a series of steps that you’d be required to take to successfully establish your business.
All start-ups right at the start are extremely vulnerable as most of them go bust in their attempts to find angel investors and hire dedicated employees. Alternatively, not taking stock of and assessing common, preventable pitfalls could also lead to their collapse. Promising start-ups should be wary of the following snags and hazards and do everything possible in order to avoid them. Discover the startups mistakes to avoid:
Why Startups Fail?
Finance is the lifeblood of any business, big or small, and funds are indispensable to get your venture off the ground. Convincing venture capitalists and angel investors to invest in your start-up is unquestionably the most arduous task. Overseeing cash flow, keeping track of your expenses, and balancing incomes and expending are no less harrowing. Once the money starts flowing in after you’ve convinced investors to finance your startup, be prudential enough to use it judiciously.
Becoming overly dependent on any particular facet and anchoring your business around that component could spell disaster. Follow the time-tested axiom ‘Never put all your eggs in one basket’ in letter and spirit by leveraging your assets over a diverse variety of verticals. The wider you cast your net, the easier you’ll find it to confront unanticipated risks during a crisis. The survival of your startup should never depend on a particular customer, employee or business environment factors that are at best transient.
Underestimating or disregarding competition and your competitors is akin to committing hara-kiri. You should make it a point to observe, analyse and learn from the strategies adopted by your competitors to promote their wares or services in this stiffly competitive market. For that matter, do not overestimate competition or competitors either, rather have faith on yourself and your enterprise.
This is the age of the internet and you’d do well to buttress your online presence with a user-friendly website that attracts maximum traffic. Take care to see that the content of your website is relevant, regularly updated and SEO-oriented. Also, leave no stone unturned in making the most of offline marketing strategies. Underrating the significance of automated social networks with respect to publicizing your undertaking can prove to be catastrophic.
Impropriety Can Be Disastrous
Keeping a professional attitude is profoundly crucial to sell your business proposition to prospective capitalists and investors. Humility and professionalism are essential traits that investors look for in entrepreneurs. So, cultivating and practising these virtues right from the beginning will always stand you in good stead.
Hiring Inefficient Manpower
Always bear in mind that human resources is the most important factor of production and hence the start-up’s most valuable asset. Employees can make or break your business depending on whether you hire employable and employment-ready individuals. Avoid hiring close friends, relatives and immediate members of your family as personal relationships might clash with business interests.
In conclusion, it can be inferred that launching a startup can be exciting and at the same time nerve-wracking and scary. Paying heed to the above pitfalls that many a frustrated entrepreneur has committed will not only keep you on your guard but also make the going more comfortable for your company.