It’s not at all uncommon that a brilliantly imagined startup gets ruined only months after its launch. The number of new businesses that end up bankrupt before they even start functioning is seriously high.
The reason behind this is that new, inexperienced leaders simply fail to think things through. So, they act on impulse, and make rash decisions that aren’t based on knowledge or data.
Starting a business has its protocol; it’s simple to gather all the documents you need. However, due to a lack of experience, chances are that you’re unfamiliar with beginner mistakes that quite often drive a business into the ground.
Failing to Do Marketing Research First
You can’t just start sailing without preparation, set off to unknown horizons, without a compass or any sense of direction. That’s how you get stranded.
Before launching your startup, you need to get closely familiar with your market. For your startup to have a chance of survival, you need to research the demand, and learn about the wants and needs of your target audience.
Having No Interest in Your Business
If you’re starting a business just because someone gave you an idea that sounds plausibly profitable, chances are you won’t give your best to make it work.
Your startup needs to be based on a passion of yours, something that drives you. That will keep you pushing even in the hardest, most desperate moments.
Not Being Ready to Sacrifice Your Social Life
A startup demands as much attention as a newborn. So that it can grow, you need to nurture it and provide it with a means for proper development. You will have to give up on weekends for a while if you want this to work out.
Not Knowing How to Treat Customers
Considering the market saturation, the only way your business to stand a chance is if you know how to build strong relationships with your customers. If you’ve never been in direct contact with customers, and if your previous jobs kept in you the back office, you should know that you have a lot to learn.
Startups count a small number of employees; for it to be highly functional, each of those employees needs to be equipped with a narrow expertise – they need to be true professionals in their fields. However, that doesn’t come cheap.
Have in mind that valuable workers and talents deserve a fair price for their services. Otherwise, they won’t be properly motivated to contribute to your business.
Ignoring Results of Analytics
Taking risks is one thing; every accomplished business leader faced risky challenges in their career. However, you first need to develop an intuition so that you can later allow it to guide you.
Until that time comes, you need to lean on numbers. Every move you make needs to be a result of fine calculation. Pay close attention to tools for analytics and the data they show.
Trying to Take Care of Everything by Yourself
If you’re lead by that old “If you want something done, do it yourself” saying, you won’t be able to accomplish much with your startup.
You need to place trust in your team. Naturally, that implies that you need to wisely choose your employees beforehand. The key to your success is delegation of responsibilities. For your startup to flourish, every employee needs to pull their weight.
Forgetting about Insurance
Although you shouldn’t have a fear from failure – negative thoughts can cloud your judgement – you still need to think about your safety net.
Business leaders who got irreversibly bankrupt forgot about this matter – insurance. It might be another expense the moment you’re counting every dime, but it will allow you to bounce back in case of an unfortunate event. Therefore, check out a startup insurance agency, and explore your options.
A business consists out of many different aspects, and for it to actually develop and become functional, you need to have all of them in mind. The truth is that, with careful planning, through research, and precise data, you’ll be able to recognize and make the right moves. Just make sure you steer clear from the mistakes we listed above, and your chances for success will significantly increase.