Do you know that about 56% of the startups fail in the first 5 years of inception? Why? Because it is so easy to think to build a successful start takes no time, but it is not really an easy feat. Ups and downs are part of life. Several established entrepreneurs have launched failed startups before finally hitting the jackpot. Part of the reason is that the first-time entrepreneurs make certain mistakes which turn their business upside down. One of the reasons entrepreneurs don’t succeed in the start is that they fail to learn from the mistakes of others and move on making their own.
Here are six mistakes that you should avoid as a new founder to potentially increase your chances to launch a successful business startup:
1. The Famine Mentality
Most of the first time entrepreneurs don’t realise the power of their idea. Often, they start a business without validating their idea. As a serial entrepreneur, I know what it feels like to feel overwhelmed with an idea and stop thinking about the consequences it can have. You cannot afford the luxury of spending every dime you have. You need to plan things in detail. You don’t need to spend because your competitors are also spending it. You need to act smart. You need to place your bets on places where you will get the most return.
2. Misunderstand The Cash Flow
My first startup was like this. I started with a lot of cash in my hand but right after 6 months, I was running out of cash even to pay the salary of my people. What went wrong? I totally missed the value of cash flow. You need to learn the value of positive cash flow and the negative cash flow. How the money is coming and how it is getting out. A mistake which entrepreneurs make is to misunderstand the power of cash flow. You need to take care of your financial health so that things can move smoothly. Check out Robert Kiyosaki’s cash flow quadrant, which will help you to progress your cash flow well.
3. Build A Product For Everyone
The novice entrepreneur makes the mistake of creating the next best Facebook app. Well, good luck to those people. But, you need to start with something simple. A basic app that can appeal the masses. Of course, you cannot expect things to work out just like that. You need to start small and move on top. Start small and get big. If you want to start a website design agency, you can start by taking the first few projects by yourself. If you’re able to do the first things right, you can manage your resources well.
4. Lack Of Focus & Too Many Distractions
As an entrepreneur, you will be overwhelmed to make impulse decisions every day. You cannot afford the luxury to lose your focus while you make that decision. Avoid too many distractions and focus on the task at hand. You can use free online tools to manage your distractions and regain your focus on a single thing.
5. Falling Forward Is Different Than Just Falling
You need to understand the difference between falling forward and just falling. When you fall you fall without learning from your failure. But when you fall forward it means you have learned from the opportunity. You also need to keep in mind that falling doesn’t mean you can quit. Not at all. It just means you need a different approach to do the same thing. You need to understand the fact that you need to avoid doing major in minor things. Sure, business cards are necessary, but what is more important is how you treat your customers. Focus on that.
6. Selecting The Wrong Co-Founder
Great things happen when good teams combined. Everyone has their strengths and weakness. So, to run a business, you need to make sure that you know the things that are necessary to set up a business. Yes, you don’t have expertise in every business skill, but you can always hire someone – a co-founder that can cover your weakness and make them your strengths. Once you figure this out it will be easy for you to expand more and more in the direction that you want to go.
To Wrap It All Up
Starting a business is easy, but to keep it open is hard. If you need your business to grow and expand, you need to move on fast. It is okay to fail a lot. But it is not okay to stop trying. These tips will help you gain the confidence and start doing the things that really matter. Your first startup might not work that well, but you can learn from that and move on to your next big time. It is all about doing the things in a way that doesn’t make you lose your enthusiasm. Start and you will be bound to make mistakes and learn from them.