Today, there are innumerable opportunities and gaps for new entrepreneurs to make their dent. Technologies are wide-ranging, and reaching your target market is not as daunting as it was before. Without the right strategies, your startup company is bound for crippling failure and losses.
Budding entrepreneurs tend to dive into the business world with very misleading perceptions about startups, and for this reason, most new businesses hardly ever make it beyond their first year. To avoid the same fate, here are some of the most common mistakes you should steer clear of when launching your business.
Most new founders enter the market with wild dreams of how the industry is going to bow down to their innovations. This leads them into an obsession for customer traction, limited options for their funding, and an overestimation of the market size. As soon as the business takes off, they realize that entrepreneurship doesn’t work like that. You don’t acquire funding with the snap of a finger, and you may actually encounter rejections from potential investors.
As a new entrepreneur, you have probably carried out in-depth research about what you are getting yourself into. Typically, you’ve delved into stories of business moguls who built multi-million dollar businesses from scratch. The other side of the story is that these businesses took time to build, and so will yours.
Wrong Timing When Launching A Startup
When it comes to timing, the secret is finding a perfect balance between ‘too early’ and ‘too late.’
Every entrepreneur has gone through spurts of self-doubt at some point in their entrepreneurial path. In the beginning, you are not sure whether your consumers will be receptive of your products, or whether you’ll thrush the stiff competition within your niche. What you probably don’t know is that the longer you wait, the more opportunities slip right through your fingers.
Start small, and start now. After all, it’s a learning curve. On the other hand, DO NOT put your startup out there without adequate resources. Make sure the version you launch is the best version at that time and not half-baked version. Once you’ve ascertained efficient usability across all features and sustainable funding, you can make the leap.
Don’t Over Hire At The Beginning
Yes, you’ve been lucky to partner with very ‘generous’ investors and your startup has acquired the funding it needs to take it off its feet. After achieving this, most budding entrepreneurs embark on a hiring spree and come up with departments that are they can avoid. More so for tech-startups, personality, and tech knowledge is what you should look for.
Can they take up your visions as their own? How flexible are they to adapting change and stretching themselves thin for the sake of your company’s growth? Your team should be as enthusiastic as you are, or else, your business dynamics will suffer greatly.
Most importantly, before you choose a partner/co-founder, ensure their strategies are representative of your vision. If your personality or goals are a mismatch, then that will be costly to your business prospects. Also, don’t launch your startup with too many partners as this will pave way for conflicting ideas and goals.
Underinvesting In Your Startup Brand Name
Underinvesting in your marketing strategies and Public relations is one mistake that will cost you robust business growth. For innovative startups, spreading the word on your idea is important. Your potential customers simply need some convincing on what your product does, and how it will help them do things differently.
When we zero down to innovative start-ups, your brand quality should speak for itself. Since the online conversation is very active today, shift enough focus on your Online Reputation Management Strategies. Take advantage of online reputation tools and track your performance online.
This will help you understand your market. You can then reconfigure your content to resonate with what their expectations of a product like yours. Build your website and let it speak for your brand.
Undervaluing Your Product
Startup valuation can be an uphill task, and being new in the market, most entrepreneurs find themselves undervaluing their new businesses. The fact that your idea is not yet explosive is not a reflection of its worth. Assigning the correct value to your business will help you raise strat-funding from worthy investors, in addition to eliminating any unrealistic expectations you may have for your startup.
Mistakes are common in business, and you should take each one of them as a learning opportunity. The ones listed above are the common ones among new founders, and you should void them at all costs.