21 Most Common Business Mistake Every Startup Does
Startup starts journey with with enthusiasm. countless entrepreneurs have blazed the startup trail before, and many of them have committed common mistakes the rest of us can learn from. Almost all companies studied have common reasons for their failure even before beginning to pick up.They fall into the trap over and over again but if they could avoid these business startup mistakes, their chances would significantly improve.
Here are 21 most common start up Mistakes:
1.Startup needs strong preparation
Be mentally and physically good before starting new beginning of business. Before that ensure You have requisite skills and knowledge of the work you intend to start.
Be sure you are not distub by any kind of pressure (social, family or any kind) because any business startup requires hard work, focus, dedication, and concentration and so no personal hiccups or professional turmoil’s may trouble you in your mission.
2.Skipping or Over thinking on your business plan
You have you start up and you might have hundreds of thought and idea. But somewhere down the line, you are not able to decide about the resources you need to add or other things to incorporate. You are thinking over and over again on things might mess up your workflow.
3.The failure change of One Man Army is high.
Startup is not any easy job you might have many ideas running inside your head. But you might be unable to take right path in such case you may feel importance or co founder. You also need co-founders to fund and resources or infrastructure your start up.
4.Right idea, Intense focus and right research lack as startup
Start up is always your new job. You dive on pool full of risk, you do not know what you want, you do not have any idea what you want to achieve and where you want to reach. So better to focus on your milestone and input your ideas and research all about your business.
Set a milestone of the year and a two and with the help of experts and accountant calculate expected production, sales and profit you can achieve and anticipated loss. Never lose focus but be flexible with the changes in the industry, market or conditions prevailing.
Many companies have been ruined because they have not adhered themselves to the change. However it is highly suggested to those fine entrepreneurs to show flexibility in their approach and work, do not remain stick to whatever you have been doing but create another plan and start working on that and even if that isn’t working, prepare third plan, fourth plan…. And soon
6.Hire too soon can be you another mistake as starup
“By far, the biggest mistake a startup can make is hiring employees too soon, such as hiring full-timers when a part-timer might make more sense, or hiring an employee when a subcontractor could have done the same job/function. It is very easy to run a small business with part-timers, subcontractors and the services of other professionals.” – Joseph C. Kunz Jr., CEO and president, Dickson Keanaghan
7.Financial needs and management boost your start up.
Finance is always an important part of a business, you should make correct estimates of your financial needs, by considering all the variables. If Account is out of your mind,Hire an accountant and calculate expected costs that might be required in investment on inventories, raw materials requirements, investment on distribution, sales and marketing and miscellaneous expenses etc. and set up the time frame for each task.
8.You never thought of seeking help or Delegate the work
No one is one man army, so never try to do any work that you are not experienced with. It is a problem among entrepreneurs and managers, they wanted to do everything on their own Instead of trusting others and delegating the workload,
9.Trusting experts blindly may leads to failure.
Sometimes you need to do by your guts. You can see many examples where people get in trouble trusting on other advice. You need to analyze and judge what people says with its pros and cons.
However, advice is to listen to the experts but do what your intuition says. It is true if you have fallen in a perplexing situation, where it is becoming difficult for you to make a right decision, think it carefully what is best for you in the current situation and act on it. Nobody could understand the situation better as you could.
10.You are spending time on product development but not on sales
Business need sales. Of Course it’s true but what if you focus on sales rather than your product.
You know what i mean, right?
11.Startup might make mistake finding the gap between sales and profits
Why you are in business ? I have no doubt 100% for profit. Starts up runs for sells . Let’s suppose you have more sells that you expected but you don’t have good profit in corresponding to your sales. So always analize gap between sales and profit. You should maintain constant gap and should check weather you have constant gap between sales and profit with the help of your accountant and market advisor.
12.Draining Money to what you don’t need
Draining Money to unproductive is another mistake from starts up. In some case starts up starts spending money towards wrong things, but by the time they realize that what they are spending is actually wasting, it’s too late for them
13.Startup mistakes by moving too slowly.
Start up usually makes decision slow in comparison to established company. As it very difficult to manage all things with limited resources. As long as you take time to decide you are left behind by your competitors.
14.Scaling too quickly
As a start up scaling quickly can be also a mistake. you should understands all aspect of your business and then only dedcide to scale up. If you scale up without making all aspect strong you might end up with fail.
15.Grow up in the right place.
Location is the most important formula for business. As a start up you might not have the right perception about the perfect location for your start up and you might make mistakes as start up set up you business or market to wrong location.
16.You are following wrong marketing idea
Everyone thinks differently. You might have an awesome idea that might dominate the market. The question is what if it results as shit?
So you should not implement new idea totally. You can experiment or study by implementing in small scale . But as start up you might not have enough manpower and skill to do so. Better to understand market trends as start up.
17.Misinterpreting your market
You might end up your startup if your misinterpret your targeted market. For example You can take example to Nokia. Nokia used to be dominated mobile phone. While android as emerging to dominate, nokia misinterpreted and move to Microsoft and you know what happened.
18.You are assuming that money can solve all your problems
Money can solve Millions of problem but not the one you are facing. Never think money is superior. Your problem solving technique or leading ability is bigger than money to your business.
19.Your estimation on sales is wrong
You are excited about your startup and you have estimates the vacant of your product. You are sure you will sell 99.99% product but you fail and ended to 52% as a startup it might be your biggest pain.
20.Don’t give yourself the wrong salary
Most starts up fight for fund and they compromised with very less or no pay to themselves. Don’t think it’s a right choice. Consider paying yourself a percentage of revenue. Whatever you choose, make figuring out your pay and that of your partners a practice and foundation to healthy expectation of management.
21.Fear of Failure
Fear is the king inside you if you are new to your work. Fear of failure is always within you as startup. It might be the last and most important thing you should manage as start up.