8 Avoidable Blunders Every Startup is Bound to Make

Are you planning to start your own business?

If yes, then this quoted statistics is just for you: “As per a study of 2,000 startups, recent research shows that 75 percent of startups fail.”

I am not trying to discourage you with this statistic — I am trying to keep you well informed so you take the time to think through decisions and prepare properly before taking the plunge.

Mistakes and entrepreneurship go hand-in-hand, but there are some common mistakes committed by the majority of young entrepreneurs.

Never fear; we have gathered some tips from the pros that will save you from committing those blunders.

Here is one excellent example of biggest mistake and lesson learned from a successful entrepreneur. Take a look at what Michael Hyatt -NYT best-selling author has shared.

Here are the eight most common mistakes committed by the majority of Startups: 1. Test the water before taking the Plunge

Can you win a competition without preparing for it? No. Well, it is the same case for startups. Before launching your startup, you need to warm up with some pre-launch training. Testing the market before you dive deep is a good idea. Test your business idea, do some through market research and product viability. Starting up a new technology company or any other startup with new ideas may be easy but to compete in your niche market is a difficult task.

2. Unable to find the Right Co-founder

Finding the right co-founder for your business is like finding a perfect life partner. It may sound hilarious, but you can’t overlook this point. Find someone who is equally talented, compliments your skill set and, most importantly, shares the same goals. It is best to stick with one partner, more than that becomes a group and often results in a conflicts of opinion and other problems. If you have a flair for sales and marketing then look for someone who is technically sound or vice versa. At the end of the day, a co-founder needs to be someone with whom you can get along. He or she should also take constructive criticism in stride and have a flexible approach.

3. Lack of Innovation & Expansion

As per PwC’s Annual Global CEO survey report, 78 percent of CEOs consider innovation to be one of the most important factors for growth. Additionally, 40 percent of CEOs stated that growth comes when they keep expanding their range of products and services.

In the ever-evolving world of business, innovation is the key to excel. To keep an edge over your competitors, you need to keep innovating your product and services. As it is said, innovation distinguishes between a leader and a follower. Innovation enables you to create new revenue streams for your business while cutting business costs. Think out of the box for your product, services, business logos etc. and you will have a competitive advantage over your competitors.

4. Hiring the Wrong People

According to the U.S. Department of Labor, the cost of a bad hire is at least 30 percent of the employee’s first-year earnings. Especially, when you are a startup, a five-figure investment in the wrong person is a threat to the business.

Building the right team is crucial for every startup. A strong team will help you lay a solid foundation for your company. Startups are small and agile with a high rate of innovation and growth. Again, with innovation and growth comes great work and responsibility. So, at times, people you hire need to step out of their work profile and wear many hats, so be clear about this when you are hiring. Choose people with the right skill set, attitude, and excellent customer service skills and avoid individuals who are concerned only about salary.

5. Mishandling Money or Resources

This is the most common mistake that entrepreneurs fall prey too. Funders often indulge in overspending on two things: Hiring more people than necessary and promotion. These two elements, can burn through the startup’s finances faster than they should.  Your organizational profitability is directly linked to optimal resource utilization. Correct handling of resources is critical for growth.

6. Ignoring Data

Business is all about data and numbers. Having a belief that you will succeed is good but to turn your belief into reality, you need to get some actionable data. Crunch some numbers. Once you have accurate data, you can create key performance indicators around it to discover how your business is progressing.

7. Scaling too quickly

According to Startup Genome, 74 percent of Internet startups failed because they scaled too soon. They can raise funds quickly but do not use those funds correctly. Be careful with your funds — don’t spend money on things that aren’t contributing to your company’s growth.

 8. Fearing Failure

Nobody wants to be a failure. But, keep in mind, with failure also comes learning. Each time you think you have failed, remember, owning a business is a continuous learning process. Although, it does hurt every time you fail but you need to apply that lesson to move forward in your business.

Campbell Joef is the creative head for Designhill, as well as a blogger and designer. He writes on topics concerning design, eCommerce, start-ups, digital marketing, and interactive content.

The post 8 Avoidable Blunders Every Startup is Bound to Make appeared first on SiteProNews.