7 Most Common Startup Mistakes
After the lockdown caused due to the pandemic, a lot of people have started their own small businesses and startups. Some of them are of art and crafts that people make at home, while some are related to advertising, or other agencies. No matter how different the final product or service you are providing is, the business process is usually the same. If followed correctly, your business can do well easily. However, a lot of times, people tend to make mistakes and errors in the process of doing a startup. Here are the 7 Most common startup mistakes that people make.
7 Most Common Startup Mistakes
Build a product that nobody wants
The primary and the very basic mistake made in any business, big or small is not having a target audience. There are millions of things that are bought and sold both online and in person. When the product is presented to its customers, it has to appeal to them in order for them to buy it. For example, products made for children usually have cartoon characters on them, so they get attracted by the product. This creates a need for it. However, if your product is something very obscure, there are chances that even after a lot of promotion, people might not end up buying it. Every product sold should have a purpose, usage, and demand.
Spend too much time on MVP
MVP in startup refers to the minimum viable product. It is one of the initial stages of starting a business. This term is taken from the book ‘The Lean Startup’ by Eric Reis. This is the stage when a small batch of the product you plan on selling, and sells or gives that to customers around you. Selling it is usually considered a better option, as it gives you an idea about your pricing, etc. After the sale, you are expected to take feedback from this batch of people, and then improve upon it before a bigger batch is released to the public. This stage is vital, however, it is not worth spending a lot of money and time on. No product can ever be perfect for everyone, so if you keep on trying to improve the product repeatedly in the MVP stage, you may end up losing money and time.
Did not spend enough time on culture from day one
It is very obvious that a business cannot be run by one single individual alone. It is required to have some professionals and employees involved with the business, directly or indirectly. These people then very much become involved with you, your company, and your product. It is important to treat these people with respect and care. Especially when your business is a startup, the initial employees will always be the pillars of it. So, you should spend a little time working on the work culture and checking up on your employees.
Focus too much on competition
It is impossible not to have different companies make and sell the same product. There are always similar products available in the market, and the appeal of one over the other makes one more successful than the other. Even if your idea is completely original and never heard or thought of, there are going to be some groups of people who will take your idea and use it for their business. In such cases, ignoring competition is the best. Instead, the energy should go into improving your product.
Did not learn from data
Data is an important part of the learning process. The collected data can very evidently show if your product is doing well or not. If done right, data can also show who is buying your product, in terms of age range, gender, social background, geographical area, etc. All of this information is handy and important for your business to grow. Once you know who your target audience is, you can make advertisements and direct them toward more people in that demographic. If you do not pick up these things from data, it is very difficult for your business to take flight then.
Did not communicate
As mentioned earlier, the key to any good business is good and caring employees. They will work difficult for the company if they are given proper incentives for it. As they are a part of your team, it is necessary to keep them in the loop of everything that is going on with regard to the company and its sales. Anything new that is being launched should be informed to them first, it will make them feel included and you will receive constructive feedback. Organizing regular meetings, having an anonymous feedback box, etc. can help in increasing healthy communication.
Focus on the wrong things
It is very easy to get distracted by various things while building up a business, as there are several things that need your proper attention and time. However, it is not important to pay attention to every single thing yourself. You should be able to delegate work amongst your co-workers and employees. Do not focus on unnecessary details, like too much numerical data that does not contribute to any good, etc.
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