Every start up wants to be a success but how does one get it. Mere idea won’t do the trick but the execution is the key. Every start up life cycle is long and involves couple of years. It goes through the transition of stages which require different techniques, adaptability, flexibility and motivation to continue irrespective of situations. A startup is bound to make mistakes and lose out on valuable time, money and efforts. It is important for the company to avoid these mistakes and still stay on course.
Some Entrepreneur Mistakes you need to learn from
Wrong hiring of the core team – It is extremely crucial to get the right core team at the initial stage itself since they are going to build the pillars. Working in a start up is different and it is crucial that they have a mind set for the start ups. Certain traits are very essential for building A and B teams in a start up since the wrong hiring will take the start up back by few months.
No business plan / clear vision in place – It is absolutely must for any start up to have a solid business plan which plays a vital role in future success. Business plan provides a certain direction to the company and all efforts are bound together.
Handling the money incorrectly – Equity or seed capital is costlier than debt funds since their cost is always hidden. Start up has to handle the funds very carefully and maintaining a fine balance between cost cutting and making available adequate funds for product is an art. Most of the times with no robust financial systems like MIS, Budgeting in place one tend to misjudge the funds availability. Such a startup mistakes create a shortage of M oxygen for the business.
Avoiding Digital and social media as well as outdoor marketing This one could be thought of as the ‘doable’ among start up mistakes but certainly not the one you should commit.! Today world over every start up thrives on digital and social media for brand creation, awareness, reaching out to customers, engagement with customers. .However it is a very viral world and has a power to act positively as well as negatively within shortest possible time. At a early stage start up does not require a big ticket spending on these activities but a very thought out customized plan for go to market. Start ups do make mistakes in selecting wrong mediums, wrong timing and placements and over spend on these. .
Lacking the ability to pivot -Start up do face a situation where original idea may become obsolete or becomes difficult to execute. It takes a lot of courage to do a pivot where entrepreneur has to do a pivot from a original idea. However the same has to be based on multiple factors since one never gets a second chance for pivot. Not being able to pivot at the right time turns in to a big mistake which can become a failure.
Product does not serve the customer – It is extremely important that substantial research is being done before identifying the product duplication or substitute to the existing product reduces the early traction and becomes difficult to scale up.
Product is easily accessible to consumers – Easy accessibility for consumers helps to reduce the sales cycle by removing the element of search from the sales process. Customer does not like to waste time in searching for the product availability.
Clear communication about the products. – All formats of the communication should be very clear, to the point, direct and precise. This helps to avoid the confusion does not leave the room for interpretation by consumers about the product.