The startup success rate is not very high, and many consider it as a feat that is very difficult to achieve. The truth is that startup failure has a lot to do with mistakes entrepreneurs commit while running or starting a business. Fortunately, the good thing is that those mistakes are easy to avoid once one has the right guidance.
If you are ready to give your startup a boost, have a look at the following most common mistakes and how to avoid them:
1: Having too Much Confidence in What You Have
Make it a point to perform some market research on how well others perceive your idea. According to most experts, one of the major reasons why businesses fail is because they do not offer what people are looking for, or more precisely offer what nobody wants.
In hope of being unique, many entrepreneurs come up with absurd ideas that others have no interest in. The best solution is to perform market research and see how people react to your idea. Be ready to listen to negative criticism and to improve what you already have.
Market research is a big phenomenon but can be done without having to spend a lot of money. What you can do is join online communities to discuss your ideas, see market trends, analyze your potential audience and speak to experts and hear their opinion. In the light of all these facts you should see if your idea will be welcomed by who you are targeting.
A good example is Calvin Ayre, a giant in the world of gambling, who first laid the groundwork for Bodog in 1992 to study the market, and wisely built it into a empire turning himself into a billionaire.
In addition to all this, you should be open to changes and also study what your competitors are doing. Try to learn from their mistakes as you cannot afford to make your own.
2: Not Having a Helping Hand
It does not matter how good you are at what you do, you will need help if you want to taste success. One of the major reasons why you need assistance in some form is the fact that you may feel disheartened or burn-out in the beginning phase. This is because the beginning is the most difficult stage where you will have to take care of a lot of things, and all this may take a toll on you. As per several reports, a number of startups fail to take off because the founder gets too tired of working.
While being the sole owner may be a tempting thing, stats say that you have 30% more chances of finding success if you have a co-founder to shoulder the burden. To avoid this mistake look for someone with similar interests and the ability to join your hands with full enthusiasm.
You can learn from Fred & Peter Done, two of the biggest British entrepreneurs, and founders of BetFred, one of the most successful betting arenas in the UK. The two worked together in giving gambling a big boost while creating their own empire.
Tip: If you are not willing to share what you think is only yours, you can look for some assistance in the form of a manager. At the end of the day, what's important is having a trustable individual putting his or her best foot forward.
3: Having the Wrong Team
One common mistake most startups make is that they hire teams that are not suitable for the job. Even 23% of founders believe that their businesses failed due to an incompetent or wrong team.
In most cases such hiring is due to a lack of funds since startups cannot afford to pay fat paychecks. To solve this issue, don't hire just because you need to fill empty seats. Only hire individuals who are willing to learn and understand your business. And also make it a point to talk to them and polish their skills so they can be an asset to your organization.
When you're starting a business, do not just look at success stories but also at failures and learn from them. When you're putting so much on the line, you cannot afford to go wrong.