Fatal mistakes that can put an end to your startup
Singapore has become a startup hub in Asia. Its strategic location and lucrative funding options have attracted entrepreneurs to bring their idea to fruition in Singapore. In fact, Block 71, Ayer Rajah Crescent is termed by the Economist as ‘the world’s most tightly packed entrepreneurial ecosystem.’ While there is a robust environment, there exists fierce competition and constantly changing markets for entrepreneurs to deal with. And, most startup owners fail to battle obstacles and break down.
Today, budding entrepreneurs have various examples of what it takes to make your venture succeed. From Bill Gates to Steve Jobs, startup owners can take tips from the life of all these successful people and turn their idea into a success. While entrepreneurs know what they should be doing, they are hardly aware of the practices they should avoid. After all, just like success stories, failure also teaches you invaluable lessons. Out of the number of startups initiated, around 56% are struggling. Why? From picking the wrong reasons to start a business to lack of proper management, entrepreneurs make several mistakes that leave them with failure.
If you plan to start your own business, then pay heed to these common startup mistakes to avoid, apart from taking success tips.
1. Spread Oneself too Thin
As an entrepreneur, you have a grand vision of how your product or service will revolutionise the industry. So, you make plans, and then you’re all set to take of the business world. But, running a business is not as simple as it sounds. There’s nothing wrong with aiming big. However, many entrepreneurs make the mistake of multitasking at once, instead of taking a step at a time. Eventually, they end up achieving nothing. A startup has limited resources. Trying to capture the entire market at once results in customer’s suffering from loss of quality and entrepreneurs facing escalated costs. You should focus on thing at a time. Secure a niche market and then move on to expand.
2. Being in Control of Everything
As an entrepreneur, you have already visualised the way you will run the business, launch your product, manage finances, and deal with customers and associates. From the small to big aspects, you have an idea of the way things should be done. While there is nothing wrong with being perfect, many entrepreneurs exercise too much control, fail to delegate, and end up in a mess. You should train your subordinates and put across the company’s vision. Show some trust and motivate them to work toward it. You should focus on growing the business and leave them with the responsibility to run it.
3. Failing to Prioritise Marketing
There’s no doubt that the internet has made it easy for businesses to connect with their audience. Many entrepreneurs think that having a Facebook and Instagram page and posting a few tweets will bring them customers. But, internet marketing is not limited to that. Yes, the internet has made it easy to sell your products or services. But, success only comes if customers know you. Many e-commerce firms get lost in the string of search results. Hence, entrepreneurs should prioritise marketing. They should invest time and effort towards being known. If customers aren’t aware of your existence, even the best products and services won’t help you succeed.
4. Ignoring the Importance of Learning
Yes, you’re the boss. But, that doesn’t make you an expert in everything. Every business owner enjoys the process of making their own choices and doing what they want. And, that is fun when you are well-versed in the subject. But, entrepreneurs also have to deal with things they have no knowledge of. You may encounter things you never experienced and still will be expected to take decisions regarding them. Many entrepreneurs fail to take advice and rush into things. To prevent costly errors, it is prudent that you talk to someone your trust and understand situations you don’t understand. It is wise to be a learner when running a business.
5. Lack of Flexibility
There are several businesses that stick to their ways and face a downfall because they fail to transform with time. Like life, markets are constantly changing. Yesterday, accounting was done manually, but today, it is automated. Some entrepreneurs stick to their idea or ways of managing business and clients, even though the market has moved ahead. This inability to adapt to change is one of the biggest mistakes that kill startups. Change is constant and you should learn to adapt to new ways instead of being adamant. From your products to the way you do business, keep innovating and you will see success.
6. Not Having an Exit Plan
No one likes to think of failure. You want to see your idea blooming and reaching successful heights. But, what the future holds is unpredictable. And, mistakes are an evident part of life. Just like you insure yourself against unfortunate events, you should have a plan in place to ensure you’re not in a financial mess in case you have to end your venture. A contingency plan is as important as a plan for growth. Many entrepreneurs don’t like to think about the unfortunate things. When in an adverse situation, they have no idea as to what to do. Save yourself from such situations by having an exit plan in place. Whether it is selling your business or closing it, you should have a plan in place for difficult times.
As an entrepreneur, it is imperative that you watch out for these common startup mistakes to avoid. Observe and learn from every type of entrepreneur – successful and unsuccessful. And, then you’re well equipped with the knowledge to run a business.
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