Failure is a part and parcel of life, and especially when it comes to business. Failing in certain aspects, learning from them and making changes is a better prospect than leading to an entire business failure due to some avoidable mistakes. Here are some common mistakes that startup founders fall for that lead to a closure of the business in most cases. Avoid these mistakes and save your startup from closing down.
Be problem-oriented, not solution oriented
Sometimes, people think of random solution-based ideas and start a business, but the real success lies in the fact when you think of a problem and then work towards providing a solution. One should be sure that a problem exists and then offer solution-based ideas.
Let ego rule the decisions
You may have started your startup after a lot of research and thought, but to keep going it’s important to face the competitors and also learn new ways of doing business. Adaptation to change is important and it may not happen that you can think of all the ideas all by yourself. So without letting the ego take a toll on your business, be open to the advice of the expert.
Neglect testing
It is always better to test markets and take a consumer feedback before you launch your products or services in a full-fledged manner. Don’t always assume that the internal experts would be 100% accurate, it’s important to check the ground realities and take user feedback from the potential customers and not just the internal team.
Hire friends over expert professionals
Just because you are great friends with someone doesn’t mean you hire them in your company at the cost of hiring the required professionals. You must hire people basis their skill sets and not basis the relationships you share with them. Yes, it is easy to work with the people you know, but you must hire them only if your company needs them. Also when working with friends, remember to keep your personal and professional relationships separate.
Give up easily
Giving up at the first sign of trouble is the easiest way out, but that’s now how successful companies are formed. Don’t look for excuses to leave the business and give up on it. You should do everything that it takes for the company to keep going, even when faced with challenging times. In fact, during hard times, put double the efforts.
Take cash flow for granted
Do keep a constant check on your cash flow and do not take it for granted. You may be riding high on cash in one year, and the next year may find you struggling for the basics. So do not splurge and keep your priorities right. A CEO being driven in a luxury car is not a priority as compared to keeping some money saved for hard times. Paying the employees on time, even during a cash crunch is far more important, because you may depend on them to develop the business, but no one likes working without being paid for it.
So do keep these tips in mind and secure the future of your startup.
