“A business is all about solving a particular problem that the business owner believes that exists. At least that is what most business owners say when you sit down for a coffee to talk to them.
“Don’t worry we are not here to create a controversy whether all the businesses in the world exist to solve problems.” After closely working with start-ups and young entrepreneurs, we identified these top 5 common mistakes that most start-up owners make.
Here we go..
- Lack of Planning (At each Level):
Now wait a minute, no planning? Is that even possible? Who would possibly get into business without a plan? Well, let me break it down for you.
We have seen this common behavior that most entrepreneurs have a start plan, survival plan and exit plan (a few exceptions), but the biggest thing missing in the entire story is having a bench-marking. By that we mean that it is important for every business to have small goals with destined benchmark, wherein at each phase the business is rewarded by taking the next best step. Let’s say for example, “You have been working on a blog for quite some time and have also been working on promoting the same in some social media platforms, and you set a bench mark, Let’s say maybe 1K followers on twitter! Now that’s a benchmark, now you can reward your blog by investing a few dollars on paid ads!”
- Investing Capital in the Unnecessary :
This is the most common problem that almost every start-ups face despite of being heavily funded by Venture Capitalist or Banks. Organisations have a very bad behaviour of over staffing, especially with the sale department, thinking that more sale reps equals to more sales. (Phew…seriously, is this logical?). Most organisations lack financial planning especially start-ups as maintaining a proper cash flow helps it be liquid at times of greatest needs, i.e. Making an acquisition or running a nationwide advertisement campaign etc.
- Into business only for money :
Well, this is one of the biggest reasons why most start-ups fail even before they start if not within the first 5 years. “During our years of consulting organizations we have noticed numerous patterns in these young entrepreneurs who enter the world of business just for money!” They lack a very important component that is passion to solve a problem. It is seen that many start-up owners do not really know the problem they intend to solve with their business.
- That’s not my idea? He does it why can’t I?
Ohh boy! I am sure you have definitely come across this one. Many, in fact most of the start-up owners actually get into business when some shares or recommends an idea. That can either be a friend, a colleague, a relative or even a family member.
“If you have planned to start a business and if this how you are planning to get into it, we would say, STOP RIGHT NOW! Before it is way too late!
Being original with your idea is important, by that I do not mean that you need to invent something, but instead try solving a problem that you have faced before and imagine now on how terrible that can be for others as well.
- Doing the wrong business:
This is a very common mistake, that start-ups get into, i.e. if they are a group of individuals working together and each of them are of different backgrounds but the owners of the company lacks the business understanding and also are completely dependent on the group of experts working for them, this can lead to many problems such as
- Theft of original Intellectual Property (IP)
- Excessive dependency on the technical experts.
- Lack of freedom to try other success methodologies.
- Reluctant to change.
- Excessive internal politics and lack of business control.
We would like to hear, what your challenges were as a start-up or do you agree with our blog post, do let us know on the comments below.