The 4 Killer Mistakes Made by Start-ups
Share this article:
By Luci Iley
The idea is there, a few friends are willing to help out in their spare time, you have a pretty good idea of how you want things to work out, what could go wrong?
A lot of things, actually. 90% of all start-ups fail within their first year. Here are four of the main reasons why;
Rushing Headfirst into an Idea
‘Failure to plan, is planning to fail’, a good plan should take into account all possible outcomes for the idea – every opportunity for failure, success and even modest survival should be written down and analysed in depth before a single step is taken into the start-up world. This should all form a part of a solid business plan, including financial forecasts, marketing prospects and investment ideas – every last detail needs to be looked at.
The world is changing rapidly – legalities, societal pressures and even technology are all moving at an incredible rate and the successful start-up owner needs to be on top of new information as soon as it becomes available. Technology must be embraced as it becomes popular, societal pressures must be considered so as not to cause offense and the changes in law must, obviously, be adhered to.
Poor Financial Planning
‘Money makes the world go around’ – unfortunately, it is also key to a start-up’s success. When planning the financial aspect of a new start-up, take into consideration where the funding is coming from, how will any investors be repaid and how the business will support itself throughout the first year. This is a task which needs careful planning, as the smallest of oversights can create big problems in the long-run.
There is no point in developing an idea which has already been done. Check all sources for previous start-ups producing similar products to yourself, if it has already been done, find out what people dislike about it – and fix it. Try to create a completely new product which answers the needs of existing users and create a product that a lot of people already want.
New start-up ideas incite many emotions – fear, excitement, enthusiasm and motivation – but keeping these feeling in check is part of the process. Make sure that you are armed with all of the information and plans you need to succeed before rushing into anything.
A course with us could be the perfect first step in your start-up journey, contact us today to find out how we can help you prepare for success.