Starting up is now considered as a fascinating alternative to a 9-5 job and the idea of being your own boss attracts a lot of young enthusiastic wannapreneurs to venture out into the startup space with innovative ideas and passion. Little do they realise that a unique idea isn’t the only requirement to make it big as an entrepreneur in this extremely competitive market. As a result, many startups end up making mistakes that cost them a lot.
Here are few mistakes a founder must avoid while starting up !
No Co-founder – How often do we see a startup with one single founder? In other words, it gets really difficult for startups to be successful with one guy at the helm of everything. It gets real difficult sometimes to find the right co-founders for your startup who share your vision and passion, but that little effort is required to make sure work is divided properly among different individuals with diverse specialisations.
Spending Too Much – As a new entrepreneur, money is likely to be one of your biggest concerns. Pre-launch cash flow is likely to be close to nil, so making and saving money will usually take priority over everything else. But once they get funded, startups look at money in a whole different angle and get into the spend money to make money mode, thus burning a big whole in their pockets and take the company down with them.
Not Choosing The Right Employees – Startups differ in their hiring methods, while some tend to over-hire putting a lot of faith in their employees, others prefer cost saving by hiring employees based on cost. Each of them have their own reasons behind these decisions but both of these decisions end up costing the company on the long run. Overhiring results in wastage of funds and low cost employees lead to fall in efficiency.
Avoid Expanding Or Innovating – By choosing an obscure niche, a startup may paint themselves in a corner. They try to stick to their work and stay away from territory where they will face competition however this proves detrimental to in the long run as the startup limits its growth and misses out opportunities.
Launching Too Early – Launch too early and you may be completely unprepared to handle your growth, or worse yet to present a usable product. Many startups in a hurry to get into the market launch products which or not market tested or customised to meet the needs to the consumer. This leads many good ideas being ignored by the public and their reputation is tarnished.