With a global surge in technological innovation and advancements, it’s no surprise that entrepreneurs, tech enthusiasts, and experts are rushing to launch various startups.
There are currently 1.35 million tech-related startups globally. While many people can establish their business using various rouses, there are still many startups that unfortunately fail to fare well. About 90% of startups fail within their first year, 30% in their second year, and 50% by the third year.
Unsuitable business models, development issues, lack of investors, and cash flow problems are some of the most common reasons startups fail. While an experienced business person may fully understand and prepare for such challenges, an aspiring entrepreneur will need guidance.
Here are some of the most common mistakes that entrepreneurs, tech enthusiasts, and experts should avoid at the beginning of their startup.
1- Unclear Business Goals
Some ideas seem so favorable that entrepreneurs rush into them with excitement. However, enthusiasm alone won’t necessarily thrive any business.
Running into ventures without setting up clear business plans and goals ultimately leads to short-live success.
Good business plans include short and long-term goals, guiding principles, and smart objectives that are specific, measurable, attainable, realistic, and time-bound.
A thoroughly set business plan is crucial to help startups steer the rocky road to success.
2- Hasty Efforts to Finance Funds Without a Clear Plan
Not having a clear plan or goals can make your investors lose confidence in you. Why would they want to invest in something rushed and not thoroughly thorough?
Setting up broad business goals also includes determining which part of your project will require how much funds.
This approach will indicate to the investors that you have a realistic grasp on how you will run and manage your business but also give you a clear idea of how much revenue you need to earn to grow your business.
3- No Backup Plan
Not everything will always go the way you have planned it. Instead of losing hope and throwing in the towel, taking a second to breathe is crucial and referring to the next backup plan.
It’s better to be safe than sorry. From economic downturns to daily operational mishaps, many business experts and professionals recommend having several backup plans to help you prepare for the worst-case scenarios your business may face.
4- No Consideration for Completion
Entrepreneurs often create products or services that are beneficial for solving various real-life problems that people experience daily. So why not create something that eliminates the problem in the first place?
While most of the ideas come from wanting to create solutions, part of creating a reliable solution is being able to look at what’s already been done about it.
You must find the X-factor that other businesses are lacking. Then, focus on the competitors, learn how they are performing, and develop your solutions after observing how things are already playing out in the market.
5- No Awareness of Customers’ Needs
Customers’ needs are constantly changing. So what people are using today might not be relevant tomorrow, which is something that will only be truer with time as technology keeps evolving.
The development and up gradation process doesn’t stop after launching the product or service. It is a continuous effort throughout the operations to ensure that you deliver the best quality of services or products.
Businesses that do not listen to what their customers need and want only invite the risk of becoming irrelevant to their targeted audience and market.
6- Funds Mismanagement
Mismanagement of funds always leads to disasters and inevitable business failure. Not being able to keep track of your funds (intentional or unintentional) can lead your business to closure, and you can also face potential illegal activity.
In addition, fraud can take an ugly turn depending on how many people are involved with the funds’ mismanagement.
7- Poor Budgeting
For dynamic business development, it is essential to equally distribute the available funds for all the various sectors of the business. The problem arises when entrepreneurs put too much into one area and leave nothing for another.
Particularly in the initial stages of the startup, funds usually come easily, so each budgeting plan should be thoroughly planned and realistic. Evaluating which areas need a specific budget can enable a business to expand exponentially.
8- Insufficient Marketing Efforts
One of the biggest mistakes an entrepreneur and startup can make is underestimating the power of marketing. A good product or service won’t mean a thing if people don’t know about it.
Depending on your target audience or marketing, you and your marketing team should know the best way to grab the customers’ attention and develop a relationship with the people that require your services or products.
Whether it’s about creating social media posts, launching ad campaigns, uploading blogs, or utilizing traditional marketing resources such as commercials or print ads, you should know how to speak to your customers.
In this age of technology, the power of WhatsApp Business API – one of the most popular messaging applications – allows you to market your business and engage with millions of people globally, attract thousands of qualified leads, generate sales, and grow your revenue.
The business world can leave an intimidating feeling as it can be challenging to get it right on the first try. Entrepreneurs can quickly lose their motivation, determination, and will to go on, but keeping yourself well-informed and in tune with your business and target audience requirements can help you stay on top of your game.