In the first year of doing business, startups tend to commit the same mistakes which can cost them not only money but also their entire existence. Reporter Alyson Shontell, who has been writing about startups and new entrepreneurs since 2008, pointed out this fact in an article on Business Insider. She compiled a list of typical mistakes every new entrepreneur should be wary of.
Premature presentation in the media
When you contact journalists, you need to know why - in what specific way publicity should help you. Random media appearances work only in the short term. First, you need a business model and the product you want to sell.
Wrong numbers
At the beginning you will need a large sum of money or a wealthy investor. However, investors may soon lose confidence in your project if you do not start making money. So, before you start a business, you should have sufficient financial reserves to cover the initial expenses, calculated well in advance. If you do not have money or cannot afford to risk, do not start a business.
Trying to do everything yourself
Running a startup is very time consuming and requires specific skills. If you do not want to burn out, start your business with a co-founder or at least advisers to share the workload with you. As for the number of co-founders, two is the best. One of you should be a full-time communicator with potential customers.
Trying to push a dysfunctional business
Do not leave your permanent job until you have proved that your business idea has a chance of success. If you start a business and it does not work, react quickly. Make the necessary changes and if it does not work even after that, be prepared to stop. It does not matter how great your idea is if you cannot find customers.
Poor communication
A startup founder must be able to explain his or her vision to both employees and customers. S/he should not avoid criticism. Building relationships is vital and s/he cannot afford to keep silent.
Excessive greed
A smart entrepreneur can recognise a good business offer. If you are offered 100 million dollars for your startup, do not reject it.
Lying about your company's performance
An entrepreneur who needs to keep a business running often tells white lies about the company's growth and how much money it makes. However, if the company is failing, the truth will always emerge. Lies can only delay failure for a while. The longer the while, the greater the damage to your reputation.
Underestimating the demanding nature of doing business
When the press writes about startups, we read mostly success stories. The hard work behind the success remains unnoticed. Every starting entrepreneur should know that there is a both physically and mentally challenging period ahead. Everything will revolve around the company. This will mean great stress at work and at home.
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