When asked about the reason or the conditions behind the failure of any start-up, it is more of a question that is directed in the affirmative than in the negative. As only when one understands how startup blunders are caused, one can truly know the mantra of succeeding by avoiding exactly those conditions which are likely to drown them.
If you have a list of the things that you should not do, you have the fully prepared, result warranted, recipe to success. Every entrepreneur builds something with a positive outlook, energy, time, belief, hard-work, intellect and capital. They build something they wish to see grow bigger and successful in the future. To help them proceed to the highest peaks, we have taken it upon ourselves to enlist the six startup blunders that you need to be wary about-
Also Read: Generating Genuine Links Using Infographics In Your Website
1. Being the sole founder
It’s very rare that one hears of a company that is founded by a single founder. It is because establishing a start-up alone is very difficult. You need others as well who can help you brainstorm through ideas, spot the blind points that are likely to be overlooked by a single person and cheer you up when things go in an unwanted direction.
2. Location errors
You may often encounter such situations where start-ups do remarkably well in certain locations and not so well in others. There are certain factors that you must consider before deciding the location for your start-up like whether the product or service you are dealing with has a demand in that location or not, whether the raw material availability is high or not, etc. It is only in the locations where the startups prosper do we find the availability of experts, higher living standards, supporting industries etc.
3. Niche away from competition
Another major one among the startup blunders is choosing a small, marginal niche for your startup with the objective to avoid any kind of competition that you are likely to face. It is the simple rule of business, if you make something good, you are going to face competition. You must be prepared to do so as it is good for the success of your start-up.
4. Poor management of investors
As a founder of any start-up it is your task to manage your investors. You should neither ignore them nor give them the authority to run your company by giving up too much equity during the initial phase. You must exercise caution in raising and handling funds as startup blunders are more common here. Make sure your interests are protected and so are your ‘controlling rights’.
5. Serve the customers
It is the first rule of any start-up that you must deal in those services whose demand is high amongst the consumers or those products that are required by the customers. You must heed your customers as it is only the customers who can determine the success or failure of your start-up.
6. Incompetent staff
Hiring an incompetent staff is one of the major startup blunders that one could make. It is the staff of any start-up due to whose hard-work, knowledge, efficiency and aptitude does a startup succeed and in the same manner it is an incompetent staff that could kill your start-up.