Being in a startup for a while, I have done a lot of mistakes, and wrong decisions. So, from my experiences in the past here are 18 mistakes that Entrepreneurs make which can be the major reason that may kill a startup.
- Single Founder
Today, you cannot rely on one particular partner or an expertise. You should be having more than one partner with multiple specialties. So if you are planning to start a business single handed and on your own, then you are bound to fall. Nowadays, business requires people with expertise in various fields such as technology, sales, finance, production, operations, etc.
- Bad Location
I have seen people launching a product for US customers by sitting in India. You need to have a local partner as well as local presence. This helps you to understand the expectations from end users in a better way.
- Marginal Niche
By this, it means that your product doesn’t save money, operating costs are high or your profit margins are low. If this is the case, then it is not far off that your startup is going to fail.
- Derivative Idea
Derivative idea means that startups keep on changing their ideas every now and then. By changing your basic idea every often, you kill the chances of your startup getting successful.
This refers to getting a lot of obstacles while running a startup. If there are a lot of obstacles and you are not able to tackle them, it is surely going to kill your business.
- Hiring Bad Resources
You need to be very careful while hiring resources. Hiring bad resources for programming, operations, accounts and sales can impact startup badly due to limited funds and resources.
- Choosing the Wrong Platforms
If you are a technology startup and you don’t use proper platform, then you are bound to fail. Choosing the right platform for your technology is one of the main pillars of a startup sustainability.
- Slowness in Launching
You should not delay the launch of your startup/product. By delaying the launch, you will miss out on a lot of opportunities in the market and lose several customers.
- Launching Too Early
You should not launch a product/startup if it is not 100% ready. You may think of launching a beta version of the product to see the user response and then launch your product at the right time.
- Having No Specific User in Mind
I have seen several startups that do not have a specific user in mind while targeting. This might waste your efforts and you will not be able to reach the relevant audience. If you are not talking to relevant audiences there are high chances of getting misleaded.
- Raising Too Little Money
If you are raising too little money and investing a lot, then the chances of your startup getting killed are high. As your little money will soon be exhausted and if you don’t have a plan to raise it back its difficult to run the show.
- Spending Too Much Money
Every startup should keep a track of how much money it is spending. You should not spend more than your profit. If that is the case, then you need to rethink on your strategy.
- Raising Too Much Money
Now, if you raise a lot of money and think of selling your startup, then nothing is left. So, you need to maintain a balance of your income – Not too less and not too high.
- Poor Investor Management
If you are not able to generate profit for your organization as well as your investor, then your startup is going to fall. A successful startup is the one, which has a good investor relationship management.
- Sacrificing Users to (Supposed) Profit
A startup should always think of their users. If you are sacrificing your users to generate more profit (which you are not sure of), then this is going to kill your startup.
- Not Wanting to Get your Hands Dirty
This means too much of delegation without expertise. For example, if you are not doing nothing and handing over all the responsibilities to others, then your startup is in trouble. Before you delegate the responsibility ensure that you have a proper road map and review mechanism set.
- Fights Between Founders
Ego clashes or fights between founders of the same organizations can drown the business. You should avoid this by proper communication and having timely discussions. Thus set proper division of role and responsibility. Complement each other rather than Compete.
- A Half-hearted Effort
Lastly, if you are working half heartedly in your organizations, then the obvious result would be the death of that startup.
If you want to learn swimming you have to get into the water, you can’t learn swimming keeping yourself dry.