Mistakes Every Startup CEO Makes
Why are startups failing?
Everyone knows the high risk associated with startups, with as many as 90% failing eventually. This can be due to the inexperience of the business owner as much as the business model itself. As such Valuers list of 66 mistakes startup CEO’s make forms a practical what-not-to-do list for any aspiring entrepreneurs.
Bad management:
Many of the mistakes made by rookie entrepreneurs involve their naivete in operating a business and startup culture. This often takes the form of improper management of a team, for example hiring the wrong people, micromanaging, or plainly ignoring the opinions of those around you. This creates undue pressure for the entrepreneur and can lead to burnout and the inability to make clearheaded decisions.
Saying “yes” too often:
Sticking to a business plan, and carefully selecting investors are also commonly overlooked. Staying on top of your finances is crucial not only to the health of the business, but also its attractiveness to investors, making a financial plan vital. Remember that not all investment deals are right for you. Signing a bad deal, potentially trading a small capital investment for majority equity will only damage your business in the long run, however tempting in the moment.
High ego:
For those entrepreneurs who believe their idea is revolutionary, a lack of objectivity can be detrimental to the business. A focus on elements of the product that its creator deems to be beneficial often detract from a customer-oriented point of view. The emphasis should be on customer needs, and how the functionality of your product addresses these needs.
Poor strategy:
A poorly thought-out sales and marketing strategy is another frequent mistake for startups. Knowledge of your target segments, their size and your opportunity to reach them via sales channels will be critical to success. An innovative product is simply not enough to grow a business and in order to highlight your USP. The hidden key is to invest time and effort into a realistic marketing plan.
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