Top Start Up Mistakes

1. Getting the team right

Technology seems to be the buzz-word at the moment. Everyone wants to be a tech-entrepreneur and hence it’s logical to assume that tech startups need a super tech. I couldn’t disagree more. A start-up is like any other business and hence requires a sales lead, marketers, designers and lawyers. If you’re a dream team of five PHP developers, you should be worried!

2. Losing Your Focus

Sitting in a room, sipping on crap coffee and brainstorming on the whiteboard is arguably the most fun part of what we do. We come up with
hundreds of new ideas every day but the truth is that we all have limited time and resources, which is why we need to focus and prioritize. Settling on a clear focus — your product, your audience, your strategy — is critical from day one.

3. Not thinking from the customers’

point of view Every so often, take a step back and look at your business from your customers’ point of view. iPad apps are cool but not when none of your customer’s have iPads! We are often caught up in our want to build the next Facebook and constantly dreaming about the next ground breaking, world changing feature! What we should be doing is speaking to our customers and analyzing how our business is meeting their needs.

4. Protecting The “Light-Bulb Idea”.

I’ve done it many times! Long, annoying Non-Disclousures before I’m willing to share my big idea. Chances are that if you’ve just thought of something, a thousand others have already thought about it and probably 18 months earlier. More importantly however, an idea is by no means a business … it is execution that makes a business happen!

5.Fixating Over Funding

A lot of young startups assume that fundraising is an important symbol of success. Having successfully raised US$500,000 from investment funds for EatOut & SleepOut, it is really rewarding to see that someone is actually willing to put money behind your business and ideas. But investors are not running a charity. They want something in return. Actually, they want a lot in return! If your business makes money, then you may well be better off not fundraising, and in doing so; retain control and ownership of your business. And if your business doesn’t make money then perhaps there are some bigger issues to tackle before you start pitching investors. The only thing that matters is building a viable, growing and profitable business.

6. Worrying about failure

There’s no substitute for hard work. We try to have a lot of fun at the same time. Work hard, play hard and the rewards will come. However it’s always important to remember that there is nothing wrong with failing. Oh, if you’re going to fail, make sure it happens quickly. Pick your selves up and start again.

 

By Mikul Shah