Mistakes Startups make on their First Year in business

Mistakes Startups make on their First Year in business

When a founder starts a new business there are many mistakes that they make. As an entrepreneur I would try as much as possible to avoid them.

Here are the most common mistakes Startups make on their First Year in business:

1.    Starting a start-up alone

Sometimes a start-up might be time consuming and tiresome. You might feel chained onto something and might burn out. To avoid the burn out you will need someone to assist you, either a partner or advisors or people who will be able to do some work on your behalf. Through assistance and splitting of work you will be able to do the work faster.

2.    Getting to the press too early or just because others are doing it

If you are new into business and just starting and want to get into press there are questions that you should ask yourself. Why would you need it? Are you ready for it? Are you ready for the mass exposure?  What are you going to achieve from the article or press?
If you are doing it to look cool or gaining users that should not be the case as this is just temporary? It will give you high expectations and later diminish as the press ends.
Before you go into press you need to put your house in order, have a proper product, service or business plan. You wouldn’t want a case where people or customers looking for you a year later only to find you closed shop. This would be a big embarrassment.

3.    Poor Communication

When you have an idea it might be difficult to communicate it to others the way you want it done. Be open-minded and communicate to others constantly. Be ready to listen to critics.
If you do not learn how to communicate to others, the business might be as good as dead, as you might destroy your relationship with the customers and employees

4.    Start up having too many Partners or Co-founders

Sometimes it’s a good idea to pull resources and start a business with your friends but it can turn out to be messy and a very expensive break up. For instance, if you are five friends, before you even start your shares will fall to 20 percent. It will be more frustrating if your other friends are not contributing equally in running the business. Most of the time, these businesses fall out and leave one founder.
If you have to have a partner, have someone you know you will be comfortable to work with.

5.    Networking too much

When one is starting a business, they tend to network too much instead of being at their desk working. They tend to be in all the parties or functions that are happening around. If you tend to go on this route, you might network too much and forget to work.
If you are well known or have enough contacts, spend more time at your work desk. Let the already networked clients spread the word for you.

6.    Dreaming Small

Most business starters do not dream big enough, they limit themselves on what they are able to do. If you are creating something from scratch, you can create anything you want.

7.    Trying to force a business that isn’t working
Sometimes we have brilliant ideas; we quit our jobs to try out the new idea, only for it to fail.
Never quit your job until you have had a chance to try that idea and see if it is worth quitting.  Even if the startup does not go the way you want, do not stick onto it, look for another avenue, Start an idea that works and go for it. You may fail many times but you will get a breakthrough.

8.    Raising too much money too early fund the business.

Sometimes many startups raise a lot of money to start the business. They rely on investors to take all the risks. But in real life no one likes seeing their investments or savings dwindle. Having a lot of money at disposal and less is being done by either the founders may lead to careless spending and the business leads to down fall or exit of some of the founders.

If you are starting a business, do it yourself, without any pressure from the investors or board meetings, have a business model, make sure your business picks up and its able to sustain itself. From there you can be able to seek investors to put money into your business. And if no one is controlling your business and seeing your investment going down you can always exit and leave it to someone else to manage it.

9.    Being greedy

One needs to know when to leave the business when it has grown big, an entrepreneur knows when to sell it and venture into something new. When something is starting, it has the potential to grow. This is not the time to look for a buyer as chances are you will get a very low offer for it. When it has gotten to the climax you need to consider if an offer comes on the way, otherwise you might end up losing your investment or struggling.

10.    Being impatient

Sometimes we are very impatient on the businesses we are running; we want to rise to the top very fast. If that does not happen we tend to close shop. Always be patient on what you are doing. Give time for the start up to grow and the benefits will be seen.

11.    Knowing how difficult the start-up might be

Most start ups started with a lot of difficulty, we always read about successful businesses but do not take time to know how they started. Most of them had ups and downs before they got where they are. The owners had sleepless night and had to minimize the social life to get where they are.

12.    Telling lies

Sometimes companies can lie to journalists and investors if they are not performing well in order for them to raise capital. Sometimes one might be tempted to tell a lie how fast they are raising or growing but in real sense they are not.

The truth will come out eventually; lies keep you away from getting something worthy.

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