Launching a startup is a serious decision that not every person will decide on. Today we see this term more and more often. No wonder, because many people want to realize their knowledge and skills to make our world a little better. Unfortunately, it is impossible to build a successful business on enthusiasm and desire alone. The industry has its risks, pros, and cons. As with other business sectors, you’ll increase your success rate by learning about the risks and common pitfalls that can hinder your success. Don’t make the following top mistakes. They ruined many startups, even with the most unique ideas and proposals.
Think over the business model of a startup
Before launching a startup, a future leader must do a lot of analytical work. First, you should pay attention to the relevance of your idea. Will your startup and the product/service implemented with its help be in demand among people? What problem does it solve? How much money will it bring in at various stages of development? Do you have competitors? What are their strengths and weaknesses? The answers to these and many other questions will help you understand whether it is worth starting your business at all, or if you should find something else.
Niche analysis and research will help to create a business plan. It is a meticulous and long process. It requires certain skills and knowledge. Seek help from experienced professionals if you don’t have them. Also, try to attend online seminars and courses. Do self-education in the desired area to gain the necessary knowledge. They’ll definitely come in handy in the future when developing the project.
Unfortunately, many do not perceive this information, or they conduct analyzes superficially, without delving into the essence of the problem. Thus, they receive incorrect data, which gives erroneous conclusions. In the end, the creator of a startup has the wrong business plan, which at the planning stage won’t lead to the successful construction of a business. In order not to repeat the mistakes of hundreds of losers, take as much time and money as necessary for analyzing the market and creating a business plan. Take your time. It is better to do competitor research several times. Read more customer reviews.
Wrong organization of teamwork
Effective teamwork is the key to the successful development of any business, including a startup. Therefore, you should think about hiring qualified specialists even before starting the project. You must make a list of professions that’ll be included in your team in advance. They should be your like-minded startup partners. If your employees want to succeed as much as you do, this will increase the chance of achieving the desired result. Do not pay attention to mediocre and lack of initiative employees. The best employee is the one who wants to succeed and is not afraid to take on difficult tasks.
Finding highly qualified employees is only half the battle. You need to properly organize and optimize teamwork. Today you can easily do it with the help of digital tools. Trello, Microsoft Teams, and Slack help organize remote work. Thanks to them, you’ll save money on office rent and organize the work of your employees.
Business applications help to solve many organizational issues. But not everyone knows how to use them correctly. To organize effective teamwork, knowledge and skills are needed. If you do not have experience, then seek the help of a specialist who’ll help you set up all the necessary processes. People rarely ask for help from team building. They are sure that they’ll cope with everything themselves, without having enough experience. The most often sad result is the closure of a startup.
If the standard features of task managers are not enough for you, then you can expand them with the help of third-party integrations that are supported by Slack and Microsoft Teams. For example, install one of the proposed VoIP services to take communication between you, employees, partners, and potential customers to a new level. Using Microsoft Teams SMS, you can send text messages for bulk offers, customer feedback, promotions, and more.
Lack of finance is the main reason for the failure of most projects. Most often, the founders of startups are not rich people who cannot support a team for a long time on personal savings. Therefore, the first task of any manager is to find third-party financing in the early stages of building a business. After all, at first, the project won’t be profitable, and it is necessary to pay salaries, bonuses, and other expenses. Therefore, finding finance is the first step to success. Today there are various ways to solve the problem. Finding finance has become much easier than 5-10 years ago. You can borrow from loved ones, find a major investor, meet a business angel, or put your project on crowdfunding platforms.
Finding funding is a challenging task, especially for inexperienced managers. However, many do not realize it, thinking that they can handle it on their own. The result is well known. According to statistics, more than 90% of startups close in the first year after launch. You don’t want to add to this list, do you? Then do not make mistakes and look for funding even before the project is launched.
Incorrect prioritization and tasks
Proper prioritization for the team is an important factor in building any business, regardless of size. Many leaders make mistakes in prioritization. Wrong decisions can be detrimental to your startup. Unfortunately, to learn how to set tasks correctly and be able to distinguish more important goals, experience is needed. Therefore, newbies often make mistakes. But over time, they gain enough experience and do not make initial mistakes.
Try to take into account the advice and knowledge of experienced people and team members. Perhaps their experience will help you avoid mistakes while you gain new managerial experience and skills.