Having a plan and the discipline to follow it is an important part of starting a company. Being a part of a startup isn’t always glamorous, and it frequently necessitates simply surrendering to the method.
Eric Ries elaborates on this point in his book The Lean Startup: “I’ve learned from both my own successes and mistakes, as well as those of many others, that it’s the dull stuff that matters the most.” Performance in the startup world does not come from having good genes or being in the right place at the right time. Performance in a startup can be engineered by following the correct procedure, which means it can be studied and taught.”
A part of this phase is taking action to prevent common mistakes made by new entrepreneurs. Here are nine mistakes to prevent when starting a new company:
SPENDING TOO MUCH OR NOT SPENDING AT ALL
Money is likely to be one of your main worries as a new entrepreneur. Since pre-launch cash flow is likely to be minimal, making and saving money would normally take precedence over all other considerations. “You have to spend money to make money,” or “I’ll spend the bare minimum before I have some respectable cash flow,” are two mindsets I see among new entrepreneurs.
If any of these views are taken to their logical conclusion, they can be dangerous. Spend your startup funds wisely, but don’t be afraid to invest in quality people and goods. In the long run, this would be beneficial to you.
IGNORING THE COMPETITION
The enthusiasm around a new product or company can lead new entrepreneurs to believe that they have no direct competitors or that their product is so far ahead of the competition that it belongs in its own category. In fact, having no direct competitors is extremely rare. Unless you’ve created a totally new product, someone in your niche will already have a significant market share. Do your homework to figure out who these businesses are and how you can set yourself apart.
HIRING BASED SOLELY ON COST
This is closely related to number one, but it is so significant that it deserves its own mention. When money is tight, it’s tempting to cut corners on new hires. The problem with this approach is that it will cost you money in the long run. Employees and contractors that are low-cost are more likely to be inexperienced, unskilled, or inefficient for a reason (or all three).
SETTING UNREALISTIC GOALS
New entrepreneurs can become enamored of their “huge idea” to the point that they work without a solid plan. However, in order to succeed, you must set practical and attainable objectives. Make it a point to set both short- and long-term objectives, and make them clear. Don’t just say, “This year, I want to make $1 million.” Set a realistic target for yourself, and then figure out what steps you’ll need to take to get there.
