Entrepreneurship is fun until you step into the real startup scene. Everything you see from outside seems luxurious, but once you plunge yourself into this you’ll realize how hard it is to be a successful entrepreneur. In fact the hard truth is that 1 out of 10 become a successful startup today.
If you are a first time entrepreneurs then the odd of failing increases. You need to keep some basic things in mind and avoid the common mistakes to ensure that these small things shouldn’t be the biggest hurdle for you in the long run.
1. They are not realistic:
This might be a common mistake if you are plunging yourself to the startup scene for the very first time. Most of the startup founders fall in love with their idea and live in a glow of giving birth to a beautiful dream of an innovative product; but fail to realize that the baby might be ugly.
Entrepreneurs need to be prepared for worst situations and be realistic that the idea may fail. It is not compulsory that the startup has to succeed just because you think it’s a brilliant product if the consumers are not willing to adopt it.
2. They work with friends:
It’s great to have such friends who stand by you in the toughest times, but friendship and business should not be mixed. In most cases your longtime friend might not be a good choice to be the co-founder of the startup, your personal mindset can match but not the professional one. Especially if you talk down on each other.
3. They lack in Cash Flow Management:
This is one of the crucial problem and most common mistake done in any startup. The founders lack in cash flow management. To overcome this you have to create a business plan, even if it consists only of a competitor analysis/market niche strategy and your financial forecast, along with assumptions. Expect to work a lot of hours, especially in the first three to five years. If your business depends on intellectual property, protect it. Read and carefully consider every contract before you sign it.
4. They take ego to the Work Place:
Taking your Ego to the workplace can be quite dangerous for the startup. In a startup there should not be a “Yes Boss!” policy. It’s rather a place to work together for a better product of your idea. You are not the most important person in the startup. The belief in the vision of where the company is going to go should be much greater than any of the founding partners.
5. They are the only Founder:
If you want to raise funding for the startup then it might be a no no from the investors if you are the only founder of the startup. Investors don’t put their money on ideas because there are hundreds of people with the same idea of yours; they invest in the team. The better tean you have the better is your chances to grow. It’s not all about funding, also you need a helping hand who has the diversified skill sets and can help in operations while you code; just for an example.
Would love to know your thoughts on these points. These are only a few, your success depends on many factors and mostly the determination to never give up.
This article was written by Ashish Das for TheStartupJournal.