Setting up a new business is very difficult, launching up a startup is even more challenging. Attempting to build a company from scratch is a hideous task, regardless of prior experience many entrepreneurs pour in their energy, money, time and heart in developing a business idea. Unfortunately, due to lack of expertise, many startups fail within few months. You can avoid your startup from this misfortune, by not committing these common mistakes that kill startups:
- Launching it Alone
If you go through the history of successful business ventures, however big or small you will notice one thing in common, that is more than one founder at the time of launching. It is very rare for a startup to succeed if it has one founder. Having one or two extra partners not only makes it easier but also lessens the burden and there in enhances the chances of the startup to prosper.
- Not Researching the Business Idea
Failing to conduct a proper research on the business idea is one of the major mistakes novice entrepreneurs commit. Conducting a proper research of the business idea is very important, this allows you to find out the feasibility of your venture and if there is a proper market for your product and service.
- Absence of Enough Capital
Although there is no foolproof path of succeeding in the business world, having enough cash on hand will help you get started and can significantly increase your chances of succeeding. A majority of entrepreneurs make the mistake of using their personal savings or money they get from family and friends. There is no harm in taking loans from investors. Just remember this small trick, only borrow enough capital to take your business ahead.
- Choosing the Wrong Investors
While selecting an investor for outside funding, make sure to look at the value an investor will bring to your business, rather than focusing only on the money. A majority of startups make the mistake of going with investors who provide more capital, but in the long a run these investors can cause a lot of added pressure too.
5. Inappropriate Hiring
Unfortunately, entrepreneurs make the mistake of hiring a bunch of employees at a very early stage, on the other hand approaching talented part-timers for managing various aspects of the business is a more suitable and sensible plan.
6.Overlooking your Customers
When your business is going good, it's likely to ignore the most crucial part: CUSTOMERS. Since customers are the backbone of every company ignoring customer feedback can bring unfavourable results.