The startup business is a business opportunity that in recent years is being loved by many groups, especially young people. Not only promises big profits, this business can also last forever, as long as the perpetrators know how to manage it. But unfortunately there are many startup businesses that are stalled due to the inability of the actors to manage the management properly.
In general, the biggest mistake that often occurs in startup businesses when they want to attract investment is to find investors who are not related to their line of business. Many startup businessmen look for investors only by considering the big names of investors. Yet in finding investors, it is better to have one line and one vision with what startup businesses are doing. Here are a few lists of startup business errors that need to be known.
Main Causes of Business Failure
Startup Business Mistakes You Need to Avoid If there are at least 5 main causes why a startup business can fail. Among them are as follows:
- Do not have a clear planning. Careful planning is absolutely necessary in managing any business, including startup businesses. Not only does it play a role in operating the business, a clear planning will also determine the success of the startup business in the future. So make sure you already have a concrete plan and brilliant business ideas before deciding to plunge into the world of digital business.
- Do not take advantage of opportunities that exist. As a businessman, you must have a sense of sensitivity to the surrounding conditions. Including being sensitive in seeing opportunities that exist. These opportunities can take various forms. Starting from cooperation with other business people, market and consumer demand, and so forth.
- Unclear concept. To be successful at a startup business, you must have a clear business concept from the start. Every businessman may copy other startups that already exist, but don’t forget to make sure you also have a fresh, original idea, and of course can meet the market tastes well.
- Do not have adequate capital. Lack of capital is also one of the causes of failure of a startup business. Even though large capital does not guarantee business success, make sure that the company’s financial condition is managed as well as possible so that there is no deficit in the future.
- Having a quitter. Startup business competition is increasingly crowded. The death of a startup business can be followed by the growth of a thousand new startup businesses. Having a quitter just because there are one or two problems (both internal and external) is certainly not a wise decision.
Frequent Business Mistakes
Startup Business Mistakes You Need to Avoid There are some startup business mistakes that often occur, including the following:
- Start a startup business all by yourself. Because behind a successful startup business, there is generally a strong and ideal team.
- The choice of location is not right, so the startup business will find it difficult to develop.
- Avoiding competitors or competitors, such as reducing quality or profit can lead to failure in the startup business.
- Solve the same problem that ends in vain. So rather than you solving the same problem, you should look for other problems and imagine how your startup business will solve those problems.
- Not able to adapt quickly.
- Wrong to recruit employees, especially programmers. Choosing a programmer is one of the important things in setting up a startup business. But apparently choosing the right programmer is not an easy matter. And if you recruit the wrong one, then you will be far behind and rivaled by competitors.
- Incorrect in choosing a platform. Choosing the wrong platform will burden your startup business or you might lose users. For example, choose a server for your website. If server performance is slow, users are reluctant to visit your website.
- Delay the launch of a startup business, because they feel the software or service is not 100% ready. The longer you delay the launch of a startup business, the longer you will get answers to these problems.
- Releasing a product too early. This will have an impact on your startup’s business reputation.
- Do not think about the target user, so the product is not well targeted.
- Raising too few funds or raising too many funds, and spending too much money.
- Bad or bad investor management.
- Sacrificing customers for a lot of profit.
- Conflict between founders occurred.
- Not optimal in running a startup business.