Do you know that about 56% of the startups fail in the first five years of inception? Why? Because it is so easy to think to build a successful start takes no time, but it is not 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 inevitable mistakes which turn their business upside down.
One of the reasons Entrepreneurs don’t succeed in the start is that Entrepreneurs 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.
- The Famine Mentality
Most of the first time, Entrepreneurs don’t realize 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. It would be best if you acted smart. It would help if you placed your bets on places where you will get the most return.
- Misunderstand the cash flow
My first startup was like this. I started with much cash in my hand, but right after six months, I was running out of money even to pay the salary of my people. What went wrong? I missed the value of the cash flow.
It would help if you learned 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.
- Build a product for everyone
The novice Entrepreneur makes the mistake of creating the next best Facebook app. Well, good luck to those people. However, it would help if you started with something simple. An app that can appeal to the masses.
Of course, you cannot expect things to work out just like that. It would be best if you had t 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.
- Lack of focus and too many distractions
As an Entrepreneur, you will be overwhelmed to make impulse decisions every day. You cannot afford the luxury to lose your attention 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. If you’ve ever worked in a professional website design agency, you might have noticed the amount of attention everyone gives while working on a serious project. This is what is the need of the moment.
- 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? However, when you fall forward, it means you have learned from the opportunity.
It would be best if you also kept 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.
- 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. However, it is not okay to stop trying.
These tips will help you gain confidence and start doing the things that 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 do make mistakes and learn from them.