Start up mistakes every entrepreneur should avoid
Mini-Synopsis: Human psychology deems knowing what not to do more effective than knowing what to do.
Entrepreneurship is uncertain. It is a ride full of bumps and bruises, though ultimately rewarding and fulfilling. Being an entrepreneur may be ‘cool’ nowadays, but a single wrong step can prove fatal for your start-up. So what really leads to failure in the start-up industry? The answer could be a variety of small factors and decisions. Human psychology deems knowing what not to do more effective than knowing what to do. So here are 9 start-up mistakes that every hopeful entrepreneur must avoid.
A major cause leading to failure of your start-up is a lack of thorough market research. Even though your business idea seems infallible, it cannot be successful if the market is not ready for your product. Thus, researching your potential customer base, market favourability, competition and other external business factors will do you a world of good in the long run.
Inferior marketing strategy
Marketing forms the base for your business. Thus, a weak base will only collapse your structure. Not brainstorming enough for an impeccable marketing plan will hurt your business. Successful entrepreneurs swear by planning of marketing strategy before a business plan.
Lack of focus
For a first-time entrepreneur, it is easy to lose focus from day one. There are a lot of things happening simultaneously, scores of decisions to be made and so on. It is easy to get distracted by new things that you come across, be it a money-making strategy or something else altogether. But you should always keep your business plan, your modus operandi and your abilities at the focal point. It is natural and completely alright to adapt to new plans but don’t lose track of your big idea.
Spending too much or too less
Running a business is all about balance. For a start-up, money is the deciding factor. Losing track of your expenses will land you in trouble. On the other hand, being too cautious with your money and losing out on opportunities will cripple you further.
Hiring the wrong people
Your workforce determines the standing of your company. As a start-up, this becomes a monumental task as you cannot afford to dole out excellent salaries and other perks to retain good employees. The biggest mistake you can make is hiring people who are not aware or believe in your idea or vision, and are just looking for jobs.
Inflexible business idea
Rigidity in any business plan is not a good idea. As you move forward, you might come across many new ideas or strategies. It is necessary to adapt to these new plans or ideas but at the same time, equally important to keep your original plan or idea close, lest you get distracted.
Wrong timing for launch
Launching your company early might result in your product being not up to the mark or you being not prepared to handle growth or worse, any setbacks. Waiting too long to launch your company might result in wastage of precious time and resources which could have been used for accomplishing more tasks.
Not listening to customers
Customer is King. Inputs from your potential client base will help you in launching a stellar product. So, listen to your customers, understand their concerns and their needs. It is much easier and effective than coming up with ideas on your own.
Not befriending Investors
The biggest mistake is that entrepreneurs chase after investors, but are not interested in forming a lasting relationship with them. Always be in touch with your mentors or business network. A simple email will go a long way.