Everyone loves to hear about the latest startup bubble that is driving the nation by storm, which has acquired a lot of traction post the “Startup India” “Stand-up India” initiative by the government. The mere thought of knowing that someone built a business empire out of nothing gets us up on our seats. As such, who wouldn’t be interested about rags to riches story?
However, not every startup entrepreneur makes it successfully to the finishing line. Often, startups tend to fail at the early stages before taking off due to some common mistakes that most of the startup entrepreneurs commit.
Here are a few startup-killing mistakes entrepreneurs make and what you can learn from them:
There are people who are ready to try their hands at entrepreneurship just after graduating from the college. With the help of friends, family and some funding, they feel it’s enough to kick-start and run the business. However, the problem is that these entrepreneurs cannot overspend and thus, they ought to work within the budget, which infers doing things in an efficient and quick manner. In a way, this pushes them to run a learn business. They are aware of the fact that spending exuberantly during early stages will kill their dream venture.
However, in this budgeted venture, they tend to get scared when it comes to splurging on things that are eventually deemed as crucial for the success of a startup. These novice startup founders though might have heard about agile business, but they are sceptical to try it for real. For them, running repetitive experiments deems wasteful or unnecessary. They fail to understand the fact that iteration is the only thing that differentiates between failure and success for a startup.
What these newbies fail to understand is that agile business process solutions such as a cloud payroll software does not have to be necessarily expensive and they offer good ROI. You develop, release and then see how the market reacts to your offerings. The results are sure to testify your product or you help to adjust it aptly. Most importantly, it ensures that your product is a perfect fit for the market you are targeting.
The Established Businessperson:
Past few years have witnessed quite a number of these types of entrepreneurs. These are actually the ones with successful career backdrop and are all-set to launch and drive their own venture. They possess a wealth of industry-experience and expertise.
However, their experience of working with a conventional business can play spoilsport if they try running their startup the same way. Simply put, moving at a slow pace will get them nowhere. They tend to splurge a lot of money and time to develop their product, focus on recruiting the best talent, develop strategies and indulge in numerous minute details that aren’t critical for a startup in its early stages. Eventually, end up blowing the budget.
Though this might work perfectly in a corporate setting, it’s definitely not advisable for a startup. This is because a well-established business has the liberty to move slowly. As mentioned above, a startup ought to focus more on product market fit whilst being agile in developing its product and resource base.
Avoid excessive planning and thinking. Instead, focus on lean business. Make sure the product you develop fits the market and study the data acquired through market research and experiments. Though this might sound a bit unusual, it’ll certainly increase the odds for your startup to see the light of the day.
Every startup entrepreneur aspires his company to succeed, but remember it takes a lot than a strong will to make this happen. You ought to understand how agile business solutions work and leverage these to help your startup get ahead of the curve.
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