Why Most Startups Fail - 10 Most Common Mistakes
1. Failing to Have a Solid Business Plan
While experience and a great idea certainly have their place, in order for startups to succeed, they need to have a solid business plan. A good idea should be a building block to a great business plan. This plan should include anticipated costs and resources for staffing, technology, manufacturing, marketing and more.
2. Not Conducting Research on a Product or Idea
A startup's idea may be fantastic, but chances are, it's been done before. So many startups fail to get off the ground simply because the proper research was never conducted. Startups that do their research before spending their money will fare much better in the long run.
3. Running out of Funding
Think your startup is going to turn a profit in a few months? Think again. Many new businesses fail due to the fact that they never had enough funding to begin their venture. Apart from the money that a startup initially launched with, chances are, these new businesses won't turn a profit for several months or years. The only solution to this is to plan to rely solely on your initial funding and come up with an air-tight budget.
4. Not Considering Technological Issues
Your startup may be as tech-savvy as it gets, but that won't stop technology-related issues from occurring. When businesses hinge their success completely on the tech they use, they'll come up short anytime there is a delay or complication. By planning ahead for these delays, startups will be able to have an alternative plan to use in place of the malfunctioning tech.
5. Going it Alone
In the world of startups, teamwork really does make the dream work. Founders that try to go it alone are already setting themselves up for failure. Instead of doing everything by yourself, do everything you can to put together the best team possible. Success is much more likely when you have a hardworking team that you can rely on.
6. Letting the Ego Run Wild
Letting one's ego run wild has deleterious effects on startups, regardless of how amazing an idea might be. Combat this type of ego by choosing to be humble and build real relationships with customers, investors, and team members.
7. Doing Away with Best Work Practices
Ditching the 9 - 5 doesn't mean you get to stop working hard. When startups opt for the mindset of the "flexible worker", they're often in for a rude awakening. The truth is that if you're expecting startup success, now is the time to work harder than ever to achieve your goals.
8. Losing Focus
When a startup is started for the wrong reasons, it is easy to lose focus of the main goal. Tackle this problem by reacquainting yourself with why you began your journey in the first place.
9. Facing Burnout
Burnout in the working world can spell disaster for startups. While we all feel burnt out from working hard, as a founder, it's essential to push through this feeling. The solution to burnout is to take regular breaks, practice being mindful, and remembering why you're doing what you're doing.
10. Ignoring Customers' Needs
A startup that fails to listen to its customers won't have many customers for very long. Always make it a point to listen to customers and address their needs as soon as possible.
Finding success for your startup isn't impossible. By paying attention to this list of top ten don'ts for small businesses, you'll be able to greatly increase the likelihood that your startup will be one of this generation's startup success stories.
