You’re Killing Your Startup: How You Ruin Your Business Before it Even Starts
Discover 10 mistakes that will kill your startups and how to avoid them!
You’ve got an idea that you’re convinced will be the next big thing. You’ve done all of your market research and can see your product or service being used by millions of people very soon. What could go wrong? Whether you’re just starting to think about starting your own business or are already in the early stages of your startup, you should always keep in mind how easy it is to kill your company before it even begins.
They can be brought down by their founders at any time before they become large enough to become their entities. Don’t let this happen to you! Follow this list of ways you might be killing your startup and stop yourself before it’s too late!
#1. Not Having a Clear Vision
A business without a clear vision of what they want to accomplish often fails. The idea is not the most important part, but rather the execution. You should never start with a figure-it-out-as-you-go-along attitude. There are plenty of businesses that had an initial idea, but as they progressed they realized they wanted something else or had different goals and changed their plans accordingly. If you don’t know where your company will be in five years, then how can you expect anyone else to?
#2. Not Building a Team of Experts
It’s not uncommon for the founders of a startup to be experts in one field, but not in all areas. For example, one founder may be great at writing code but not so good at figuring out marketing strategies. This is where building a team of experts comes into play. Building a team with complementary skills will help your company progress more quickly and efficiently as you become an established business.
#3. Not Validating Your Idea
Starting a business without validating the idea first is like trying to fix a car with no tools. Without validation, you don’t know if you have something people will want and buy. It’s also a little like gambling; start too many businesses without validation and you’ll never make any money because, at some point, your luck will run out.
#4. Not Taking the Time to Understand Your Customer
You’re trying to do too much, too fast, without giving yourself enough time to learn who the best customers for your business are, what they want, and how they want it delivered . . . What happens? They either get overwhelmed with all the choices and options or give up on you altogether because they think this is just not for me.
#5. Not Developing a Marketing Strategy
If you don’t have a marketing strategy in place, people won’t know about your company and what you offer, which will lead to a very slow start. It doesn’t matter how effective your item is if no one knows about it. Marketing should be seen as an investment in your business and not just something that should be done when there’s money left over at the end of the month. Here are some ways you might be killing your startup by not developing a proper marketing plan:
a) Not focusing on customer acquisition
b) Ignoring social media marketing
c) Relying too heavily on word-of-mouth advertising
d) Neglecting SEO efforts in favor of other tactics
e) Focusing too much on getting funding or not focusing enough on customer acquisition and revenue generation
#6. Not Having a Sales Plan
If you are starting a business, you will have to have an effective sales plan. One of the first things that you should do is identify your target customer and what they want. Then, make sure that you offer them something that satisfies their needs. It is also important to know how much they are willing to pay for your product or service. If you don’t have a sales strategy, then people won’t be interested in buying anything from your company.
#7. Not Protecting Your Intellectual Property
If your startup is worth anything you will want to take the necessary steps to protect your intellectual property. One of the simplest ways is registering your business name with the state as soon as possible and then making sure you never use that name for another business. If you are developing a logo or other graphic elements, register those too before someone else does. You can also trademark or copyright some of the logos, colors, or graphics that represent your company’s identity. Plus, if you have any patents on products you are selling, make sure they are registered and have a lot of legal protection when possible.
#8. Not Preparing for Funding
Before you even start your business, you should prepare for funding. This includes deciding whether or not you want to launch a Kickstarter campaign or use crowdfunding platforms like Indiegogo. You should also explore which type of lending institution is best for your needs and what the difference between a bank loan and an SBA loan is. Preparing yourself financially before you start will save you time and money in the long run.
#9. Not Tracking Metrics
What metrics should you be tracking and why?
You must track the right metrics. This will let you know how your startup is doing, where it may need a little help, and when things are going well. The following are some of the most critical metrics to track:
a. Net Profit/Loss — this shows if your company is making or losing money over time
b. Sustainability — how long can the company keep running with its current resources
c. Customer Satisfaction — This measures whether customers are happy with what they receive
d. Average Order Size — an indication of how much customers spend
e. Revenue Growth — an indicator of how quickly your company is growing
f. Time on Site — a measure of engagement
#10. Giving Up too Soon
I get it. I know how hard entrepreneurship can be. It’s not easy finding the right idea, building a great team, and getting customers on board. But if you give up too soon, you’ll never find out how far your idea could have gone. That potential is what keeps me going when I think about the long hours and the money spent on marketing campaigns that don’t work. So push through your fear and just keep going!
Starting a company can be scary — there are so many things that could go wrong and ruin your efforts. Every startup has its ups and downs, but it’s vital to keep your company moving forward toward your ultimate goal, whatever that may be. You need to manage your employees’ and clients’ expectations, maintain strong relationships with important partners and investors, and come up with compelling new ideas that will give you an edge over the competition — all without losing sight of the big picture of what you’re trying to achieve.
Hope you have gained value from today’s article. If you are serious about building your startup to the next level, be sure to check my other article on The Ins and Outs of Initiating Your Very Own Startup from Scratch to think ahead and focus on the right areas, so you can make sure your startup gets off on the right track and stays there, making you as successful as you’ve always dreamed of being! As always don’t forget to give a clap and follow me medium to receive more content like this in the future.
