Top 7 Startup Mistakes

Mistake # 1: Building something nobody wants to buy

Indeed, many startups are working hard to develop something (service, app, product, API, software…) that not many people want to buy, because a little out of step with real needs. Some people never stops once they are self-convinced that their idea was awesome.

How do you realize you’re in it? You haven’t talked to potential users for a long time, and prefer to “tweak your product, add another feature”. A very good indication also: after a few months nobody has yet “bought” your concept and has committed to be one of the first customers.

Mistake # 2: Poor recruiting

Surrounding yourself is one of the 3 big things to do for a startup boss. And you have to spend some time there. A bad recruitment will make you lose energy, time, money, possibly credibility compared to the rest of the teams, will instill a bad atmosphere, etc. To grow, you will have to rely on the right team, and that is where your success will come from.

This is the composition of the team: not complementary enough, but also not necessarily with the good distribution of capital between partners, neither good governance, nor the good pact of partners, nor necessarily the same personal objectives and pro. There can be heated discussions, points of disagreement, but communication must remain open and above all allow decisions to be made in the long term.

It is not fluid, you are full of feelings, keep frustration, it blocks certain decisions. You are also too similar and too “on the same things”, which will make it rub. You are not aligned in terms of objectives, perhaps you have never even bothered to ask yourself why you should join?

How do you realize you’re in it? This can unfortunately take time. But usually you have a little inner voice that makes you doubt. And when it comes to recruitment, if there is any doubt, there is no doubt. But yes, it’s a real fight, because when you need extra arms, there is a strong tendency to be a little more loose in its recruitment. It’s 99% wrong!

Mistake # 3: Lacking focus

There are 2 types of focus: that of the entrepreneur (being dedicated to his business) and that of the startup business (being able to do something very well except for everything else). The temptations are great to go and find a little business on the right or on the left, to run several vertical trades or sectors at the same time, to launch a second country because the opportunity is there and that it is good for the comm.

Sacrificing business or knowing how to stop doing certain things (which one does elsewhere (or which one has the impression of doing) better than any collaborator at the start) is hard, but clearly necessary quickly.

How do you realize you’re in it? You find it hard to describe in one sentence what you are best for in the world (both in your job and in your business).

Mistake # 4: Failing to implement good marketing

Performing sales and marketing properly is something that most startups miss. Predictable revenue, marketing process, marketing automation, lead acquisition mechanics, lead nurturing, inbound marketing and outbound marketing strategy, definition of sales positions according to sales pipeline and stages in the sales cycle, object book, training salespeople.

All of this often takes second place (in the end, it’s common sense, right?) and greatly breaks the engine of growth to come.

How do you realize you’re in it? The entrepreneur is the only salesperson and marketing is very “reactive”, not at all in forecasting with a well-defined plan, activities, monitoring of ROI, clarification of priority segments. Basically, you are not able to quantify what your commercial activity should bring you in terms of leads / business.

Mistake # 5: Looking too much for investors, not enough customers

We still find it with a lot of project leaders who will almost stop their business operations (especially commercial) the time to find investors, something they will spend up to 6 to 9 months, obliterating their chances of proving , through sales, that their business can work well.

How do you realize you’re in it? You draw to attract the attention of investors who say to you all for the most part “it’s too early”, which is the polite version of “30 other people are working on the same concept as you, I’ll wait to see the one who manages to convince a few customers ”. Another sign is that you spend more time grabbing the article on blogs or in the press and in events than with potential customers.

Mistake # 6: Not making sure you have enough money to finance the discovery or growth phase

It is possible to create a company without too much money. But it still takes a bit to be able to simply buy time: that to find your product-market fit, that to give time to prospects to make their decision, to develop their product, to listen to the market.

Then in a second phase to be able to speed up and staff, because as soon as you have validated the first hypotheses the objective is to go as quickly as possible to structure a first business format.

How do you realize you’re in it? You only have a few months of cash (pro and personal) in front of you, and come to look at what you could do to find money whatever the cost (hint: it’s too late to start a fundraising fund)

Mistake # 7: Spending too much money, having too high a burn rate

The smart entrepreneur like the guys at Clovis dumpsters uses bootstraping. Basically, he shoots at all prices, made by himself, has a sense of resourcefulness to preserve as much as possible his little nest egg. The idea? Hold as long as possible, even after a first round if the goal is still to find your product-market Fit. After, it’s another story, you have to spend as quickly as possible. But be careful not to get too comfortable spending too soon.

How do you realize you’re in it? You burn money without counting too much: sumptuous premises, all kinds of fees, no negotiation on purchases, etc. You will soon realize this, but often too late. Do not hesitate to benchmark your expenses with those of other entrepreneurs. And have them challenged by someone who can tell you if it’s a necessary or superfluous expense.

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By: Paulo
Title: Top 7 Startup Mistakes
Sourced From: entrepreneursunpluggd.com/top-7-startup-mistakes/
Published Date: Wed, 11 Mar 2020 12:27:48 +0000

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