Startups may seem merely abundant or superabundant but are prone to common mistakes. The biggest question you should be asking as a startup is “what not to do”. The answer is quite simple, learn from the mistakes of failed startups.
Top 10 Most Common Startup Mistakes And How To Avoid Them
1. Wrong spending on the wrong things:
Many businesses make this mistake early enough. e.g Spending money that could be used to enhance your service and product on fancy office spaces.
2. Rushing to hire and hiring the wrong people:
These mistakes can be very costly especially when the company’s culture is not well-defined. Hire at the right time and hire the right person for the right purpose.
3. Acting without a plan:
Take time to audit your business and marketing plan.
4. Not defining your target audience:
A critical startup mistake starters make is not taking the time to understand the market or customers you’re providing for. Constantly try to get feedback from prospective or current customers.
5. No legal structure:
One of the most prominent mistakes startups make is not registering their businesses legally, not picking the right business entity, and not bothering to protect their intellectual property. It will cost time and money to correct if not done properly.
6. Partnership with the wrong investors:
The first set of investors of the company will make or break it because these people actually put their confidence in a potential business without any proof of concept.
7. Failure to implement contracts:
One of the biggest mistakes startups make when starting out is avoiding contracts. Business is business, honor all contracts only if proper systems and agreements are in place.
8. Paying yourself the wrong salary:
Avoid overpaying and underpaying yourself. You can consider paying yourself some certain percentage of the revenue.
Failure to meet targets due to increased workload has been proven to be a disaster caused by overpromising.
10. Launching before you are ready:
You know you are ready when you can handle customers and new clients.
In conclusion, you cannot do it all by yourself, have a team of competent and diligent characters. Bear in mind that occasional mistakes happen and are inevitable.