As we all know success does not comes at once and it is never ending. To reach a particular milestone one has to pass through various bitter experiences, failures and let downs. Startup is an entrepreneurial journey in which an entrepreneur make a lot of mistakes. Eventually all the mistakes teaches at least one good value and some mistakes becomes blunder which are not easily repented. These blunders led to bad startups and here are some common mistakes that should be avoided while developing a startup.
1.Partnering with your friend or relative
You must be thinking that what a shit I am talking about? But I have pretty good points and facts to justify this situation. I know the trust factor is high when you partner with your cousin or friend. Let me tell you my personal experience on this. Well I am a blogger so I ll tell you my blogging experience. When I had started my Gadget review blog Gadget Mentions, I was looking for a partner to work with me on this. Then my roommate who is like my younger brother agrees to join me. Well I went good for sometime but after sometime he started taking the things for granted and the growth of our blog started dipping. My condition was miserable as I could neither scold him nor I could take back the position from him. Well everything is going great right now. It happens with most of us and will happen if you are planning to partner with your near and dear one.
There must be complete professionalism between two partners. You need to look for a partner who has qualities that you do not possess to run the startup. If you have a software idea but you cannot code, then you should look for a person who can code for you on equity basis or any terms you wish to. Find this kind of guy and later on you can become great friends.
2. Underrating your employees
Employees are the lifeline of any organization and they are the one who are responsible for your company or startup growth. Now you need to handle them with care and understand their needs of employees both financially and emotionally. If your employee is not satisfied then you cannot move towards a healthy startup. Appreciate their effort, give them importance and help them whenever they need it. If you follow this with your employees, they will themselves do best for your organization. Underrating your employees will underrate you eventually.
3. Quitting your current Job
I know you have a great idea and in future it is going to make you the market king. It can be any domain. If you have make up your mind to work on this idea then it is amazing. With this if you are planning to quit your current job, then this may be the worst decision of your life. You never know whether your startup idea will work or not. Make a platform to launch your idea along with your job. It will give you both financial as well as psychological strength. Moreover the fear of failure is vanished when you have a job in your hand. If your idea doesn’t work, at least you will have your job. So quitting your job can be your biggest mistake if you are going to make it.
4. Keeping a Marginal Niche
Do not let your niche so marginal that later on you have to face issues while expanding it. Choose a great broad niche. Your startup idea must be future oriented. Many of the startup fail as their startup only pitches a small audience to avoid competition. They do not make way to expand their idea and when they start thinking about expanding, its already too late as people are already there with the same domain. Keep space for risk and competitors in your startup idea for future expansion.
5. Launching of idea too early or too late
A great idea needs a great effort and a lot of paperwork before launching. Suppose you have a CRM startup idea that will help local businesses to manage their bills, transactions and employee salaries(it is a supposition). You know that this will help them a lot but the question arises is who want to buy it? Have you researched the market? Have you researched the competitors? Now if you have not considered all these points, then you are making a mistake. It will be difficult to find the customers later on.
On the other hand if you are taking too much time to research and analysis, it will also harm you in bad way as there must be people who may be working on the idea like this and it can hurt your startup idea to a great deal.
6. No consideration of user perspective
The biggest thing is to think about user requirement. Sometimes your user is not willing to give up the conventional methods and he needs the things in same way. You cannot leverage your advanced product on them if they don’t understand that. It will only make them dissatisfied and he will run away from you now and for future too. Give him what he want.
7. Raising too less or too much money
Prepare a blueprint of your startup and prepare a detailed model of its working. Keep it in mind the milestones you need to cover in the given time frame and then look for an investor who can fund you. Do not raise too less or too much money. Every startup takes time to establish, never go for small funds which cannot survive your startup for at least two years so that you would start making money from that. Also you should not raise too much money at start. This will spoil you in number of ways, you will spend unnecessarily on vague things. The best idea to raise money is to raise money in milestones. Set up milestones and then with completion of each milestone, raise money from your investor.
8. Spending too much
Keep in mind that you are going for a startup business which may or may not be successful. You do not even know when it will be fully functional. Now the thing is you need capital to run this startup. You should cut off all your unnecessary spendings like too much hangout with friends, control your telephone bills and other small spendings. These will help you in great way later on and you will have a little extra to put in your idea.
9. Letting your users go
A customer or client has ability to fire everybody in your firm. If your client is not satisfied with your services then you need to take care of him more and more. Provide them a little extra but never let them go. If one customer leaves you, it can harm you exponentially. I love Airtel in this context. They never let their customers go. Though it is most expensive mobile network but they have an excellent service support. They provide you what you want when you are dissatisfied and this is the reason they are on the top.
10. Hiding your idea too much
Sometimes we become too possessive with our idea that we do not even care it with our near and dears. We just start it without discussing it with any industry or that niche expert. What will happen is your startup idea misses a lot of experience that the experts can put into it. They can tell you how better you can proceed. You will miss all these boost up suggestions if you hide too much and keep them top secret.
11. Over marketing before calculating metrics
Like hiding your idea can affect you negatively, over marketing will also let you down. Sometimes we become so visionary & excited with our idea that we start professing it everywhere. Everywhere with our friends, relatives and whatever we meet. What happens is all start keeping an eye on you and by chance if you missed a milestone. No one will spare you and that will shake you emotionally. So promote with care and expose it to all when you have a proven track and metrics of taking your startup to success.
No startup idea is bad to start. The quote by Walt Disney always motivate me and everyone I guess that “If you can dream it, you can achieve it”. Take the first step towards your startup journey and try to avoid these common startup mistakes. All the best for your future startup and if you have faced other mistakes while developing your startup, then do comment below in the comment box.