A startup business may seem easy to set-up and organize, but the journey towards immense success is full of challenges and lots of detours along the way.
Many startup entrepreneurs would find that a brilliant, innovative idea is not enough to keep the business afloat. There are other matters to attend to such as hiring and managing employees, getting more clients and most of all, handling the company budget well.
There are many mistakes that could cause for startups to fail even before and after launching. If you’re planning to start one, make sure you avoid doing the following:
Mishandling Company Funds
This is the most common mistake that many entrepreneurs, especially startup founders make. Startup companies usually have limited resources to begin with, but it had been proven in the past that many startups became successful despite the shoestring budget they have started with.
So the issue is not the amount of a startup’s initial investment, what matters is how the founders use up the funds. This could happen when a founder is too eager to hire a lot of people even though it is unnecessary as of the moment. It also happens when a founder buys extra tools or rely heavily on paid advertising without seeing significant revenues to cover the marketing expenses. Some also make the mistake of renting a costly office space which is not quite needed in the first place.
It is recommended for startup founders to have at least a co-founder or partner who is good with numbers and some business background. That way, the appropriation of company funds could be taken care properly.
Hiring the Wrong People
As a small company with limited resources, it is essential for any startup to bank on the right people. Getting the right people for the job maximizes the company’s efficiency, and save company funds in the long run.
There’s no need to hire two to three people if it can be done by just one person, and there’s no need to hire a friend if he or she is not really qualified for the job. Running a business means you need to invest on people who has the right skills and the right attitude to be able to grow with the company.
Dependent on One Founder
A startup with just one founder is an oddity, although there is but one exception (Oracle), but the majority of startups usually have more than one founder.
Success of a startup is not really determined by the number of its founders, but it is almost impossible to launch it when there is only one founder.
First, it means that the resources are very limited because it will be more or less dependent on that one person. Second, the business cannot fully grow when the founder lacks colleagues to consult with. Launching a business requires attention in different areas, and it is too much for just one person to handle.
A lone founder may also be indicative of a possible problem with the business. It may be that the idea is not really lucrative to begin with, or the founder simply has an attitude problem when it comes to listening to other people’s perspective or working with others for that matter.
Most of these mistakes could be avoided as long as a business plan and strategy is implemented, and the founders could focus on a defined goal.
Gemma Reeves is a seasoned writer who enjoys creating helpful articles and interesting stories. She has worked with several clients across different industries such as advertising, online marketing, technology, healthcare, family matters, and more. She is also an aspiring entrepreneur who is engaged in assisting other aspiring entrepreneurs in finding the best office space for their business.
Check out her company here: FindMyWorkSpace