Mistakes are common; in fact they’re inevitable. They also can make you a more cautious and wiser businessperson. All entrepreneurs make at least one expensive mistake when setting up a new business. But some mistakes are so costly they can sink a cash-strapped new company.
Following is list of crucial startup stumbles. Even if an entrepreneur is doing everything else right, committing even one of these mistakes can seriously damage the startup’s credibility and chances of successful launch.
1.Client communication failures
One of the most common mistakes a growing professional services firm makes is failing to effectively communicate with clients. According to a recent study, client communication is the most important factor influencing the success of a project. But this is often easier said than done.
Ninety percent of survey respondents selected email as one of their top three methods of communication during projects, but email is built for private communications between a few individuals, whereas delivering successful projects is a team endeavor. For most professionals today, relying on email means entire chains of communication are put in silos between teammates, withholding valuable information in their inboxes that’s inaccessible to both colleagues and clients.
With growing teams and bigger projects, it’s impossible to keep track of every small detail using traditional manual approaches, such as copying and pasting or multiple all-hands meetings. While new collaboration tools are trying — unsuccessfully — to replace email entirely, the real solution is to use project management software that integrates with email automatically, tracking conversations and treating the content of their messages as assets to share across the team.
2.“We don’t have any competition.”
As you brief potential advisors, investors and partners regarding your startup, you want to convey how exciting, ground-breaking and unique you are, right? But one of the silliest things you can say is, “We don’t have any competition.” Even if you have a new, dramatically better solution for addressing a certain customer problem, your customers do have another way of currently addressing that problem or issue. It’s crucial to address how you’re going to steal share from the established players — the current way of doing things.
3. “Build it and they will come.”
Inventors and innovators often tend to minimize the importance of marketing and sales. They get caught up in just how cool their solution is, and just assume that, once it’s available on the market, customers will simply stampede to buy it. Good luck with that.
Even though every Entrepreneur comes up their own innovative solution, they do not last long without proper sales and marketing technique.
4. Overly optimistic market penetration assumptions.
Another serious business planning chaos is claiming that your new startup is going to conquer the majority of its addressable market, from scratch, in just three to five years. Think about it: even the most heroically successful new market launches in history, such as the iPad and the iPod, achieved no better than 30-50% market penetration in 7 years. And those are extremely successful outliers. Are you going to do better than that, as a startup with limited marketing resources?
5. Choosing the wrong team.
This is the most expensive startup mistake, claims Bill Aulet, managing director of the Martin Trust Center for MIT Entrepreneurship and author of Disciplined Entrepreneurship.
Pick your team carefully and base your choices on the skills you need, common values and trust. Don’t let friendship cloud your judgment.
6. Take advantage of every opportunity to network.
It’s not just who you know, it’s who knows you. Your calendar may be booked from sunrise to sunset, but even 30 minutes at a networking event will pay off in the long run. Visibility is the first rule of networking. Make sure you have your presence at all social networks. . In order to promote your business, it’s essential to see and be seen.