Most entrepreneurs will have trepidation about their ideas, experience and execution. This is a bona fide concern, according to statistics, 90% of startups fail. While there are many reasons why failure can happen, make yourself aware of some of the common mistakes, so your not a statistic.
Not Having A Solid Business Plan
Before anything else, founders need to do their research. This can help understand if you’re looking at a viable market. If research shows positive signs you need to establish goals and the actions that are going to be taken to achieve them. You want to know the structure of your business, and the service you are offering, and if there is any competition for your product.
It’s also important to crunch your numbers and estimate the finances you will need in order to operate and grow. Recent research suggests that startups with a thorough business plan are 16% more likely to succeed. It will make them more aware of what your objectives and can help build confidence with investors. More importantly, they need some evidence that your startup will be able to produce revenue and operate efficiently
Choosing The Wrong Business Partner.
Choosing the wrong business partner can be damaging. You need someone with a complementary skill set. You also want someone who shares the same vision you have. They must be willing to take the risk with you. After all, having a business partnership is like having a marriage, and you want to you need to trust in each other.
Hiring The Wrong People
Just like having the right business partner is important, having a team to carry on your vision, is vital. Having the biggest or more expensive team doesn’t guarantee success. You need people with the right skills, experience and attitude, to help you move forward.
You also need a team with the right attitude. John Siegal, a chairman, company and angel investor thinks of hiring like a quadrant. On the y-axis, you have highly skilled workers and underdeveloped talent. On the x-axis you have great teammates and bad teammates. You want to find people who are low on the end scale for underdeveloped skills yet high on the axis for their ability to work in a team. This person may not be top of their industry However, they are quickly on their way and will not cost you a large proportion of your budget
Spending Too Much
You want to establish yourself as a serious company, you care about how you will be perceived by potential customers. Perhaps you feel like you won’t be taken seriously if you start up a business without a brick and mortar office, or just face the problem of needing a corporate address.
A lot of times business owners feel like to best of the best, hire the more expensive people, rent the biggest space. When starting a business, you need to be careful with the expenses, in essence, don’t buy more than you can chew. If you want to rent an office, you need to be aware that it will be a monthly expense coming out of your pocket. The same thing goes for hiring employees
Not Knowing Your Customers
You need to know your ideal customer. Do your research and know who you are selling to, and what it is they want. Test the market before you launch, and listen to what potential clients are suggesting. In order to have a successful business you have to engage with the public and figure out what is the outcome they expect from your product. Listen to the critics and realize where you can improve. What will set you apart from other companies is the value you provide to your customer and how you seek to optimise your product for the customer.