Avoid these mistakes as an entrepreneur and get a jumpstart to success.
There is a lot of data out there that tries to explain the percentage of startups that fail and succeed. You may have heard, that on average, 70% of startups fail within the first year. More or less, it’s fair to say that more startups fail than succeed. And even more common than not, entrepreneurs make a few tactical mistakes that are at the detriment of their startups—leading to their eventual failure.
Not Fleshing Out Your Business Model
We all go into business with different ideas, but at the core of what we do is the desire and need to make money. Some entrepreneurs get so excited about their idea that they fail to explore exactly how they will profit. Instead, they jump the gun and disregard one of the very first steps of creating a startup—defining a clear business model.
Take time to flesh out all components of your business model. Define a clear path to profitability so you do not run out of investment funds before you’ve given your startup a chance to succeed.
Putting More Stock in your Marketing than your Customers
We live in a digital age where social media infiltrates our lives. Branding ploys by countless companies are constantly being blasted our way. And let’s not forget how pricey marketing can be—especially for a startup that is just getting its feet off the ground.
As great as marketing can be, we can’t forget that our customers come first. It’s critical to earn your customers’ trust and following before you start appealing to the masses. Take time to grow your customer relationships and listen to any feedback they have as you launch your product or service. They will help you work out any kinks in your initial product and help you perfect it as you begin to attract a larger customer base.
Not Investing in your Team
We are the product of the people we surround ourselves with. When hiring a team to help carry your startup to success, take time to invest in them. Don’t skimp on hiring cheap or under-experienced talent. They will be on the frontlines with you—supporting you and your idea. Prioritize your team’s time, talent, and ideas, and more likely than not, you will thank yourself in the long run.
There are many missteps entrepreneurs make as they ramp up their startup. Taking time to build out a strong business model, customer base, and team will be beneficial to your startup’s continued growth. Plus, you’ll be three steps ahead of everybody else.
Derek Rundell, is a successful business leader, operator, and serial entrepreneur. Derek has founded, managed and sold businesses in the technology, media and finance industries. He sits on several boards and serves as an advisor/investor to numerous established businesses and startups. Startups are Derek’s real passion, and in addition to building his own portfolio of technology, media and financial ventures, he invests in and mentors startups and entrepreneurs. He is passionate about sharing his knowledge and helping other businesses succeed.