What makes some startups more successful than the others? Is it the money? The passion? Qualified human resources? While some great ideas catch on within a few weeks or months, other fail miserably. There is no telling what will succeed and what definitely won’t before the product is launched. And this is the greatest risk all startups must bear.
But there is one thing that kills all new businesses by default: not being useful to the end users. If you can’t make someone’s life easier with your product, you better think again before you look for an investment.
So if you have something that your target group wants, you should avoid all other startup mistakes that can kill your business.
Here are 5 startup mistakes that can cost you money and career
1. Weak identity
Good ideas take some time to develop. Unfortunately, they can’t be rushed. Entrepreneurs often don’t have enough patience or resources to establish their startups properly.
This leads to rebranding the original idea to something else, and then they rebrand it again and again. Ultimately, the customers are too confused and have no interest in the product anymore.
2. Narrow focus
Sure, you want your idea to be loved by everyone. But if your initial target group is too narrow, you might lose before you even get the chance to win.
For example, when Segway was introduced to the market, everyone thought that it will change the way people live. Even Steve Jobs thought of it as an important invention for this century.
But Segway refused to sell to the general public and decided to focus on mail carriers. Now, how many times have you seen a mail carrier on a Segway? Exactly.
Your startup team is more important than you may think. Hiring the wrong people can harm your business from the very start.
That’s why choosing the right people carefully is essential for the startup’s success. From the co-founder to the marketers, your team needs to be on the same page with you if you want to succeed. Every single person on your team is important for the startup.
4. Lack of clear plan
Not having a clear action plan for your future is equally bad for your business as not having any plan at all. The sad truth is that the entrepreneurs who fail to plan also fail to complete their projects in the first year of their startup.
The worst thing you can do when starting a business is letting it go with the flow. Build a solid action plan and a framework for the future course of development. This will help you gain the control over your company.
Don’t lose the drive that keeps you going even when things get complicated (which is inevitable). It is easy to get impatient when you invest blood, sweat and dollars into your startup. However, you must be highly motivated and determined in order to overcome the obstacles.
We live in the era of startups. Because of that, sometimes it may seem like there is little or no space for new business venture on the market.
Of course, this is not true. While some startups succeed faster than the others, there are some key points that can make or break the launch of your business.
One of them is focus. Focus on your idea and good hiring. Pivoting can be a good thing but try not to change the main purpose of your product too many times or you will confuse your customers to the point where they don’t want your product anymore.
Also, be patient and ready to adapt to new circumstances. It is never easy to succeed with a startup but it is definitely far from being impossible.