Failing as a startup isn’t a big deal. However, repeating the same mistakes, again and again, is something to worry about. A number of startups and new products fail every year, due to a handful of reasons.
In the words of Tarek Kamil, founder and CEO of the communication platform Cerkl, “People are falling into the same traps over and over. If they could just avoid those common mistakes, the chances of their company being successful would significantly increase”.
Creating a startup and leading your business to success requires optimism. The purpose of this post is to help startups and young entrepreneurs avoid mistakes that could result in shutting down their business.
Here are those 8 mistakes that you’ll most likely find in every startup failure!
1. No Preparation
“In much of society, research means to investigate something you do not know or understand.” (Neil Armstrong)
Every business is a result of an idea, but not every idea leads to success or becomes reality. Most startups fail due to a lack of research. Many startups may be confident about their ideas, but that doesn’t mean ultimate success.
This is because they don’t bother to dig deep into the matters and instead focus on igniting the idea overnight. This results in shambles, regret, and loss of hope – maybe no instantly, but gradually.
The ideas and excitement are there, but that doesn’t mean that your business is ready to implement your plans. Do some research, plan everything possible, list possible drawbacks and benefits, brainstorm more ideas, identify your target market, and start counting on when to turn your idea into reality.
2. Lack of Confidence
As confident as they may be in their ideas, a majority of entrepreneurs are quite reluctant to kick things off and get started. Spending too much time on planning and diving deeper into the various aspects of ideas is not bad, but a lack of confidence can ruin it at its core.
Starting too slow, fearing risks, trying new things, and failing to overcome nervousness are the reasons why most of the entrepreneurs fail. They are actually building walls and worsening their problems over time.
The only way to rid of this is to start with thorough research and understand the complexities of your startup business. The more you fear challenges, greater the chances of failure. Follow what Winston Churchill said long ago, “Success is not final, failure is not fatal: it is the courage to continue that counts”.
3. Choosing the Wrong Co-founder
“It is rare to find a business partner who is selfless. If you are lucky it happens once in a lifetime” (Michael Eisner)
One of the common mistakes that many entrepreneurs fall prey to is choosing a wrong co-founder or business partner. This is one of the most sensitive issues that must be addressed beforehand. You can avoid this by getting the answers to some basic but important questions, such as:
- Is this person on the same track as you?
- Does he/she understand the core of your business idea?
- Is he/she passionate enough about your idea to work on it and deliver the desired results?
- Does your partner have the right attitude to help you in overcoming your weaknesses and address them with honesty?
- Does your partner understand the business vision and mission?
Moreover, look at your work chemistry and do some formal assessments. You’ll get some good insight by asking right questions and doing an unbiased assessment. Apply the same rule to the team members you’ll hire for your startup. Every resource matters when it comes to success or failure of a new venture.
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4. Lack of Focus
“You can do anything as long as you have the passion, the drive, the focus, and the support” (Sabrina Brian).
A lot of entrepreneurs are easily distracted due to a flood of ideas, distractions, and tasks to complete in the pipeline. They are overwhelmed with ideas and work, and unfortunately, lose focus in the middle of nowhere. Starting your own business needs to be executed as perfectly as possible, and that can’t be done without absolute focus.
Make sure to break down each task into even smaller ones and work to accomplish them individually. Don’t stress out. Achieve them one by one without thinking of the other things still in the queue. Focus on your goals and the research that you have done earlier.
Never deviate from the initial plans as it will cost you money and a heavy loss that you may not be able to bear.
5. Mishandling of Financial Matters
“Money is better than poverty, if only for financial reasons” (Woody Allen)
When it comes to startups, financial matters are the most critical part. You might get excited about spending tons of money in order to enjoy maximum return, but unnecessary expenses can lead to your worst nightmare. Therefore, it’s important to ensure financial discipline from the very beginning.
Make sure to plan financial matters carefully. Hire a professional consultant to help you. Estimate your total budget and divide it into smaller parts to avoid unnecessary expenses that can be ignored temporarily. The more you manage your financial matters, the more it will pay off in the long run, literally.
6. Handle More than Possible
“Honesty and integrity are by far the most important assets of an entrepreneur”(Zig Ziglar)
Many startup entrepreneurs try to achieve results instantly. They want to reach the top of the ladder without stepping on the first rung, and the result is a sheer failure. Make sure to divide each task into even smaller ones and work to achieve them within each given deadline.
It will not only help you achieve your goals successfully but will also help you reach your goals much faster than achieving them all at once. You must know your limits (as a startup business) to avoid falling apart in the process. All you need to remember is to try to handle as much as you can, and you will finally achieve your goals.
7. Giving Up Too early
“Our greatest weakness lies in giving up. The most certain way to succeed is always to try just one more time” (Thomas Edison)
Business is not like a magic wand that you wave and instantly make millions. The problem with many startups is that they give up too early. Many of them leave when success is waiting right around the corner.
Every experience is different and comes with thorns and bumps. Make sure not to lose hope or break momentum as you might end up in disgrace after a certain time. Success lies in trying, repeatedly. Be optimistic and rid of all fears to achieve your goals. Remember, failure comes with new opportunities and lessons.
8. Money is Not Always the Solution
“I try to treat all the money I’m making like it’s the last time I’m going to make it” (Eminem)
A number of startups think that they can solve all their problems by raising funds. The truth is that it doesn’t. Money won’t help if your idea is not up to the expectations of your customers or your plans are not aligned properly to beat the competition.
In simple terms, throwing money away is not going to reap any results if your business model is not good enough. You have to look into the problem and think of whether money can solve it or your idea needs to be changed. A realistic approach tested methods, and practical frameworks are the ultimate solutions.
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