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BW Businessworld

5 Biggest Mistakes Startups Make That You Must Avoid

Although there are several startup mistakes you will want to avoid while building your business, occasional mistakes are inevitable, and you have to manage your expectations accordingly

Photo Credit : Myonlineca

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It is never easy to launch a startup business. There are so many things to consider, evaluate and decisions to make.

But why do startups fail? What mistakes are they making? Let’s take a look at 5 common mistakes and errors which can act as roadblocks to them and should be avoided.

1. Raising Venture Capital Without Clear Goals. 

While procurement of funds is very important and a critical aspect of a venture, take enough time to find the right match. Don’t rush to raise funding.Investors are more than just financial backers. Don’t jump at the first or biggest cheque. Find a partner that will put in the time to provide thoughtful guidance and mentorship

2. Not Focussing On Building A Great Team

Don’t try to operate independently. Trying to do everything yourself can put a lot of burden. Instead, focus on hiring a great team with the necessary skillsets. Effective delegation increases productivity. Surround yourself with other talented and motivated team members. But ensure you hire the right talent at the right time without going overboard. This would ease your work pressure and help you to concentrate on other important and strategic tasks.

3. Developing Products Not Backed By Data

Building the right product is everything. Don’t only focus and be enthusiastic about your own idea. It is extremely important to test the product. 

 Building products without any customer validation, data or A/B testing can be disastrous. Data is the perfect guiding tool. Keeping a close watch on data and ever-altering consumer behaviour is imperative in a market of constantly changing dynamics. Test, learn, and iterate is the right formula.

4. Draining Money 

Having capital for your venture is as important as having the ability to spend it wisely. Be frugal. Avoid unnecessary cash burn. Make every penny count.

Creating and sticking to a business budget to curb overspending is always an excellent idea. Keep cash in the bank to handle unforeseen events

5. Fear of Failure 

Fear, anxiety, and tension is always going to be there. No matter what, don’t doubt yourself and give up easily. Make that jump. Great founders do everything in their capacity to keep their companies afloat. Believe in your product and take calculated risks. Redouble your efforts when times get hard. Don't fear failures; they are the first step to success 

Although there are several startup mistakes you will want to avoid while building your business, occasional mistakes are inevitable, and you have to manage your expectations accordingly

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.


Bala Sarda

The author is Founder, VAHDAM TEAS

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