Here at Make Money In Life, we deal with startups every day. We watch them grow and we watch them fail. Over the years we’ve begun to understand what works and what doesn’t. Today we’re going to share some of the biggest startup mistakes with you. These problems have gotten the better of many great entrepreneurs. If you’re starting a new business, make sure you avoid this huge errors.
- Going it alone – Entrepreneurs are usually very driven and ambitious. They have creative ideas and big dreams. This is a great spirit and personality to have and it will take you far. Unfortunately, many entrepreneurs seem to think they know how to do everything! The best leaders have learned to listen to others. Good businesses create a team of experts that complement each other’s skills and qualities. No matter what business sector you are in, always ask for feedback and advice.
- Copying trends and fads – This tactic can work for a while, but there is no longevity. We see this happen all the time. In the wake of online dating we saw thousands of new companies spring up. The same happened with image sharing apps. Sure, you can ride these trends, but find a unique way to exploit it or you’re destined to live in the shadows.
- Targeting too small a niche – To carve out a successful business, you need an element of universal appeal. Creating a business that satisfies the needs of the few sets yourself a ceiling that you’ll hit very quickly.
- Targeting too many people! – On the other hand, we’ve seen just as many businesses fail because they tried to target too many people. To grow a reputation and community, you need to concentrate your custom to a specific area. Don’t spread yourself too thin or you’ll dilute your impact.
- Spending too long planning – All entrepreneurs are dreamers. However, the best ones stop dreaming and start doing! Spending too long planning and dreaming will often mean you miss the opportunities in front of you.
- Not planning enough! – Again, there is a second side to this one. Jumping in without identifying and researching your audience will see you idea fall flat. Take the time to develop your idea and get feedback. There’s a fine balance to find here. Take your time, just not too much time!
- Going too big too fast – It’s very easy to get excited by small growth in your company. Those first few profits come in and you want to expand and scale up immediately. This is the downfall of so many businesses. They lease offices that are far too big. If you’re based in the North West, look for small Manchester offices before you lease a huge space. You can always go bigger next time around. Another mistake is hiring more employees than you need. You’ll go bankrupt trying to fight the overheads you’ve created by going too big, too fast. Start small and scale up slowly.
There you have it, folks, seven huge mistakes that have been the downfall of many startups. Learn from these mistakes and don’t let your business head down the same route. Best of luck!