The Top 5 Mistakes That Can Kill Startup
India is a potential country with over 90 million people, of which up to 40 million people use the Internet daily. Recognizing this opportunity, many startups have opened in India in recent years to gain the best benefits.
It’s no exaggeration to say that startup has become a “hot trend” that many young people pursue. Because startups not only bring the most realistic business experiences for young people, above all, startups provide the opportunity to master that anyone desires.
Mistakes That Can Kill Startup
However, according to Topica Founder Institute’s statistics, although there are hundreds of startups investing in India, only 28 startups are truly successful. So, what are the disastrous mistakes that lead to the failure of startup businesses?
1. Only One Founder
A startup company generally has all the functions that any company needs, from sales, marketing to design, management.
Recent reports indicate that a startup should have three founders: a programmer to program the product, a designer to design the product, and a seller to sell the product, asking for funding for the product.
On top of that, with three brains from three different areas of the assessment being more objective and accurate, the decision will be made more quickly and conveniently.
In fact, it is very difficult for a founder to be able to handle all of these requirements because there is no in-depth evaluation of an expert.
Not to mention, a single founder will not have to think, evaluate the objectivity of the product as well as the working process.
In the long run, the weight of a job can cause a stressed founder to adversely affect overall progress. There are many startups who overlook this factor leading to unnecessary failures.
2. Choose The Wrong Member
The first requirement of Startup is unanimous trust.
In other words, a startup is a long-running war on time, money and willpower because there will be tears, there are many failures before reaching the peak of glory.
A startup is not for those who wait, dreaming about a successful day two.
Therefore, choosing the most suitable, most enthusiastic and daring “teammates” right from the beginning is the most essential for any startup.
Not far from here, Rovio, a startup game company with three members who persisted for 6 years, became famous for the Angry Birds game.
But besides that, many startups fail because of wrong member selection.
The failures and difficulties in startups make many young people discouraged, leading to unnecessary arguments and then giving up after just a short time of excitement.
3. Misunderstand The Market and Potential Customers
You will not be able to sell the product without understanding the customer’s mind, listening to what they want.
Therefore, it is necessary for a startup to soon attract customers’ attention to find its niche, where customers are willing to wait and hook their pockets to buy products.
For a young startup, understanding the needs of the market and customers is imperative to place the branding bricks first.
This not only helps promote the product but also creates lasting relationships with customers.
There have been many startups subjective this.
They argue that product development focuses on the ego’s perspective and forgets its customers.
They don’t put themselves in the shoes of their customers to see what they want.
This can be considered a serious mistake leading to failure later: not competing, products not reaching potential customers, …
4. Product Launch Too Slow
I agree that taking care of details, designing to launch the best quality products is essential to create an initial reputation.
However, in order to attract investment capital, the attention of product customers needs to be launched at an appropriate time.
That is, the Startup needs to have accurate time on the product launch.
Even when the market was meticulously studied, even after understanding the customer’s wishes, the slow launch also led to bad results.
The needs of the market and customers vary from day to day; launching the product at the wrong time will cause the product to be out of date, no longer suitable for tastes, and difficult to obtain high profits.
Not to mention the potential market segment is easily stolen from strong and more experienced competitors
5. Building An Inappropriate Plan
Again, a startup is a long-term battle that requires thorough preparation for each month, every week, and every day.
But there are many subjective startups planning unclearly, investing in inappropriate places makes the capital not be used properly.
In theory, a startup that wants the best product needs the best programmer.
The first time needed being to focus on hiring a good programmer. After stable products, we think about hiring other fields.
There are things, many startups have the opposite plan, offering products when the product is not yet complete.
This is not necessarily the wrong direction, but it should only be applied to startups with good sales and programming expertise. If the Startup lacks a lot of experience, should follow a safety plan.