Did you know, that according to Forbes, 90% of all startups fail? So how can you make sure you are part of the 10% that succeed?
While most startups fail, there are a few common mistakes that these startups are making that you can avoid to guarantee that your startup succeeds.
Here are ten of the most common mistakes to avoid when creating a startup.
Startups take a lot of work and a common mistake that many startup owners make is not preparing their life for the massive undertaking that is a startup. It is important to make sure that your friends and family understand that you will not have as much time to devote to them anymore, as your time will be mostly allocated to your new business. Unsupportive friends and family could cause personal misery and become a major distraction, causing your business to fail.
A Product is not Necessarily a Business
One of the biggest founder mistakes when it comes to startups is confusing a well thought of product for a real business. Before you create your startup, you have to understand that a product solves an individual need while for a business to be successful, you must have something that customers will come back for again and again. If you are unsure if you have something that meets this criterion, ask yourself, do you have revenue streams beyond the customer’s initial purchase of your product? If the answer is no, then your business will not be successful.
Pay for Experts
Another common mistake startup creators make is thinking that they can handle every aspect of their new business, but no one is good at everything. For your new business to be successful, you need to bring in experts. Start with an expert that will help your startup get up and running. Don’t assume you can handle this yourself or you will surely fail.
Not Using Data
While believing you can achieve something is an essential state of mind for success, you have to also use data and crunch numbers to guarantee that you will achieve success in your new business. Use data to validate that your idea will be successful then create KPIs or milestones that will show how your new business is progressing and meeting expectations.
Scaling Too Quickly
One of the biggest mistakes startup creators make is scaling their new business too fast and too soon. Before you spend the money you raise on things that aren’t essential to expansion, take the time to guarantee that it will create more money. Don’t just focus on spending money on things that will create revenue, focus on things that will create profit.
Not Letting Go
Often times, new entrepreneurs fall in love with their original idea and can’t let it go no matter how much it’s failing. Avoid this by ignoring these emotions and going with an idea that produces evidence that it will succeed.
Doing Everything Yourself
No one can do everything themselves so don’t think you can. Be strategic and delegate processes. You can still have control over your new business by drawing up guidebooks for how you want things to be accomplished to give your employees direction.
Money Doesn’t Solve Everything
Many startup creators believe if they just raise another round of funds then their problems will be solved but this doesn’t make sense if your idea isn’t lucrative. Before you start to think that more money will solve all your issues, ask yourself if your startup really is lucrative or if it’s just a money pit.
Sales Takes Time
Another common mistake startup owners make is underestimating how long sales will take. Don’t let your startup fail by not accounting for the time it will take to close a major account. If your business plan doesn’t account for the amount of time it will take to close deals, you are setting yourself up for failure.
Fear of Failing
The most important aspect of starting a new business is your mindset. Many people believe if they don’t find success, they’ve found failure, but this is not true because to fail means you have experienced no benefit. If your startup does end up not succeeding, don’t think of it as a failure, but as an opportunity to learn, fix your mistakes, and try again.