It is a good practice for everyone to start a business they love. But the problem comes when your love for something overwhelms you. At end of the day, you are running a business not a hobby. Actually creating a business requires a lot of work and time. Many entrepreneurs will look for a quick fix to solve problems but these quick fixes will kill a business. Let’s have look towards these mistakes, and avoid these shortcuts that can kill a startup.
- Hiring too many people too fast:
It is nearly impossible to work for business without a team. Hiring a right team is critical for any business but it’s especially important for startups. Many time hiring managers totally forget to analyze what makes a successful teammate. You have to sit and think whether you really need a large time at the starting point? You might have a lot of work on hands but employees are a big drain on your resource. Make sure to avoid shortcuts that can kill a startup business.
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Have a non-existent business plan:
Just having a plan in mind that your business will be there after one year is terrible practice. It is not a good practice to make plans just in your mind and start work. Having a clear and definite business and marketing plan in place is really a good practice. Many startups will just be relying on the mind and never work for this. It is better to make a plan on paper and associate time with it for good practice.
- Failing to understand what customers want:
No one is interested in your product at first as several products are available. Make sure you’re working on something that is a demand among customers. You should ensure you’re providing something that people want or need. Entrepreneurs who fail to fully understand customer demand will end up spinning their wheels and burning through cash. You have to get feedback from customers and ignoring this demand and making own assumptions can destroy a business.
- Killing yourself with bad margins:
Startups are working hard to make a good product but fail to provide a good prize. In many cases, startup makes a mistake of thinking they can gain a foothold in business by lowering prize. They thought that people will buy their products if they lower prize. But competitors will also lower the prize and people will never look towards new products. People thought that lower prize will decrease the quality of a product. You have to think of your business and customer satisfaction to come up with good profit.
- Splurging on unnecessary solutions:
Many time startups make money fast, it’s easy to throw money at expensive tools. While sometimes these tools provide a short fix and run for long-term business. But sometimes business starters bought unnecessary items. It is just as important to build a culture of frugal spending habits. For instance, buying luxury cars, offices at initial stage – at this time money must invest in a company.
You have to avoid these shortcuts that can kill a startup business.
