As a startup company or any business, there is a possibility of making mistakes. These mistakes may include finance, risk, or decision-making.
Most times, we see the good part about a business, and people hardly talk about the mistakes. But these mistakes are as vital as success. From these mistakes, you learn a lot about running a business and making changes.
Mistakes are bound to happen anyway. You will learn so much from mistakes that you'd best make them early in your entrepreneurial journey.
Here are some mistakes every startup should make, with recommendations on how you can best handle the situation.
One thing you need to understand as a business owner is that people will try to betray your trust. It could be your business partner, investor, or even your worker.
The person will either try to steal your money or run your entire business down. The crazy thing is that you might not know about this on time. You might be occupied with other business activities while this is happening.
Accept reality, brace yourself for the blow that is coming, and hope it doesn't harm or destroy you too much. A startup is typically made up of a strange mix of individuals (ideologists, technologists, investors, and others) who are brought together by chance and circumstance to pursue a far-off, shifting aim.
You will need to prepare for this coming betrayal and pray it doesn't affect or destroy your business.
Furthermore, a startup is usually made of people from different areas of life. These people are brought together by chance and circumstance. You only get to see their skills, not their intentions.
As a startup owner, your focus is on how to build your company, while the people that you employ may see it differently. This may be due to their morals or motivation. It causes great conflict depending on the power distribution among all parties.
How can you handle this?
You might wonder, "How did I get screwed over by my own mistake?'. Well, try reflecting. You'll probably realize something you did or didn't do that made the misfortune possible.
In most cases, there are at least two individuals in a screwer-screwed situation. In this case, it is you and whosoever screwed you over.
To handle the situation, you must first reflect on how every event leading to the misfortune unfolded.
Did you research the business partner, employee, or investor thoroughly? Was the individual's action predictable? What did you do or not do that made you vulnerable?
After this reflection, you will be more cautious about the people you work with and avoid being cheated. Now, you see why mistakes are valuable.
Another mistake a startup founder is bound to make is vengeance. It is what anybody who has been betrayed will want to do, GET EVEN!!!!. Your goal at this point is to take back from the offender. That's the only way you feel at peace until you get even with the person.
To be vengeful means the individual hurt you emotionally, making you react in a way you might not like. Your interest at that period is how you will get back at them.
Well, you could try it out, and you might achieve it, but most times, the chances are slim. Or worst, it comes back to you. If it was easy for people to take advantage of you, then it means that you lack influence, authority, or even the right skills at some point.
How can you handle this?
Move on!!!!, it's not worth the stress. Instead, focus that hurt on your business and try to get the best out of it. Although it doesn't sound easy, you will get over it with time. It is far better than holding on to something that you may likely not achieve in the end.
Get the best out of the betrayal and use it to motivate yourself. Show the world and the person that you are better and deserve to be treated fairly.
Also, you will feel happier afterward if you let it go and focus on what is at hand.
Hiding your business ideas from people
The desire to hold your cards close to your chest is understandable. Maybe you're worried that someone will steal your idea, or you don't feel you've developed it well enough to explain it to others.
Understandably, you will want to keep your business ideas to yourself, mainly out of fear that someone might steal it and use it for themselves. Or maybe you feel the idea might be too complex to explain and for people to understand.
As a startup founder, do not even try to hide your idea. It may affect your credibility as people may consider you proud or insecure. You won't like that for your business, would you??
Again, it shows that you do not trust the person well enough to discuss your idea with them. It also creates a wrong impression that will likely affect you later on. However, this could also reduce your chances of building and developing your business using your network.
Finally, it would help if you spoke to every individual you meet. It could go a long way to making your business successful.
How can you handle this?
Put yourself out there. You never know the person that will like the idea and want to invest. As this saying goes, "A closed mouth is a closed blessing" if you don't talk about your business to people, you may never get the chance to build on it.
Talking about it could also give you a bit of an insight. You may also learn one or two that might help fix or improve your idea.
Also, you are missing out on chances to network with people who could ultimately assist you in achieving Product/Market Fit, partner with you, or invest in your enterprise if you keep everything a closely-guarded state secret.
Create a "teaser" line that hints just enough about your project and the audience you're aiming for to peak attention, confirm market issues and pain spots, and spark further curiosity or valuable connections.
"My Favourite Error"
One mistake you will continue to make as a founder is failing to strike a proper balance between assurance and modesty. You never know if you are doing much of one over the other. It is a nightmare for many founders, and there is little or no way to avoid it.
You have to be confident in yourself. Maybe a bit much will help. It will help you when it comes to making the right decision.
However, being overconfident can be pretty harmful for a variety of reasons.
Your perspective or analysis may get clouded if false confidence develops out of overconfidence. Some people might see it as you being arrogant, and this may affect you socially.
A good founder must appreciate their small place in the world and have a healthy dose of humility. However, being overly modest can harm your endeavor.
How to handle this?
It takes daily effort to maintain a push-and-pull equilibrium between your self-confidence and humility. You must evaluate each situation to decide which to use and in what condition it is suitable.
Utilizing the "If You Build It, They Will Come" has a guiding principle.
This is another mistake most founders make. As a founder, believing that all you need to do is create. At the same time, they think the users will come naturally. It has led to a lot of business falls.
As a business owner, your job is not just to create alone. You are also meant to be the one to look for investors and buyers of your product.
According to startup theory, "market pull" refers to the emergence of the "they," which hardly ever occurs on its own, even among early adopters. A rigorous and iterative period of product design, customer development, product/market fit, and hands-on "Technology Push" into the target market must come before the magnificent Market Pull, which only results from a successful Technology Push.
You will have to put in lots of work before getting the market's attention and care. You'll also likely need to engage your early adopters, which is OK. Once you've actively sought out and engaged your early adopters, then the investors will come.
How can you handle this?
If you believe in this principle, you don't understand how customer development, technology push, market pull, or how to create your Minimum Viable Product. To best understand this, you will need to read a lot. It will help you understand the market pull structure.
Strategies to grow startups
Well, aside from the mistakes a founder should make. There are also some strategies a founder needs to practice to grow their startups.
Be attentive and thorough.
Just like doctors in the medical field, the owner of the business must be present all the time and hands-on for it to grow.
A business owner must never be reluctant to complete the little jobs. They should assist by picking up items or organizing boxes. Attention to detail is crucial since small pieces do get noticed.
Show Your Enthusiasm
Transferring enthusiasm is what selling is. Owners of businesses must demonstrate their passion for both their goods and customers.
There are many different types of issues in business. Business entrepreneurs must be enthusiastic in addition to having passion. You must seek the positive in every circumstance and the learning in every setback.
Put the customer first
Profit should not be your only aim as a business. But to gain and retain a customer is the goal. You want them to visit first, return, and bring friends.
The number of happy consumers you have directly relates to how well you are performing. You must pay attention to your client's needs and get involved in purchasing if you want to raise customer happiness.
Competition is everything, and differentiation is the secret to effective marketing unless you have an exclusive monopoly. You cannot run a "me too" business.
A competitive advantage is required. Create one if you don't already have one.
Your USP, or unique selling proposition, is everything. You distinguish yourself from your rivals because of this. It may be your facility or your offering, but most of the time, it's you. Customers frequently visualize the employees of a company, particularly the owner, while thinking of it.
Watch Your Money
Business owners should always prioritize sales, revenues, and cash flow while developing their business strategies. They should also be aware of their daily financial results. Instead of concentrating on your gross profit, do so. It provides you with a more accurate picture of how the company is going.
Consider "picturing your business." Please determine what you must do to establish your ideal business by imagining what it might resemble.
Make suitable hires.
You need a solid crew to support you in achieving your objectives before you can even consider the growth trajectory of your business.
A specific approach to guarantee rapid growth is to hire the best candidates you can find. Your startup will be better prepared for future expansion if you have diligent workers that are ready to achieve this feat.
Also, Doing this will help create space for you to focus on other important work. It will also help you perform better.
A certain level of risk is required when starting and growing a firm. There are numerous methods to lessen internal and external risks to your organization and its growth, even though nothing can be totally managed. Your business insurance provider is an essential instrument to help you accomplish this.
One trait that many successful entrepreneurs have in common is the ability to swiftly change directions in response to market developments. You will see faster growth if you adopt an agile development methodology for your organization and product.
You can test several company strategies and determine what works best by enabling yourself to adjust and adapt rapidly.
Re-invest in your business.
Since you'll undoubtedly have a relatively narrow profit margin in the beginning of your business, whatever profits you make should be invested in growing it.
Even while it may be tempting to keep all of your revenues for yourself, it's a better idea to invest in the growth of your company so you may afterwards reap more benefits.
You must choose which parts of your business demand more attention: Do you need to hire more people, spend more money on marketing, or all three, for instance? When you find a crucial region that needs repair, support that area financially.
Try Your Best
Entrepreneurs who are successful constantly pursue excellence. They aspire to excel in their field. The best people continuously move, work more, and work more quickly. A desire to learn more is a requirement for excellence.
Evaluate Your Success
Success is defined differently by each person. The best indicator of success is, first and foremost, how much you enjoy what you do. The most significant victory is that. Then, constantly hitting your targets will demonstrate your expertise. The final point is to love your product or service and your clients. If you follow through with all of these, success is inevitable.