8 mistakes first-time Founder make when starting a business
I like jerry Allocca quotes, “creating business it’s not about selling. It about creating value for your audience.” That’s also thinking of our new founders. They become loyal to businesses to create a better future with the help of a great idea. they are possessed with passion and grit to cross the limit and do something new which hasn’t thought yet. Once they become to win the battle, they really change the world. So, you are becoming excited to start a new company. Best of luck with that.
For your information new founder also makes so many mistakes. Eventually, they have to shut down the new innovative business. Do you want to know? what kind of mistake they make the first time. so, let’s just have a glance at those common mistakes so that in the future, you are not going make.
Ignoring market risk
One of the biggest reasons to fell down the business when you avoid market risk. So many founders who focus a lot to emphasis perfecting their technology which is a good idea. in this era, founders are becoming passionate about technology. But not giving enough attention to making a product or delivering business, it can create issues. max finger and Oliver Samwer have explained in their own book.
“Many start-ups burn through a lot of cash with a product or technology searching for a solution.” It is so true, it isn’t technology that will kill your business, it is marking value that makes your innovation to die. The author has said that the best way to avoid mistakes, try to talk with potential customers to know their issues or needs.
Taking wrong advise
Taking wrong advises will send you in hell. A lot of business becomes a success by interrupting some other business. When you are going to start the business. At the time, so many people will give you plentiful advice. But the majority of the pieces of advice are wrong.
They only want you to stop your business. So, what can you do to save the business? If someone is advising you just ask them what is the source? Try to find those sources by it yourself and research them.
Ignoring constructive feedback
One person who had the same issues in the past, he was so much busy to build the product. Due to some minor issues, their product wasn’t becoming the best seller. In the end, he had to hire a business expert. The business expert would take their customer and reviews and suggest the founder make the product. what I want to say that the founder should be taking care of feedback from a venture capitalist or customer who has been engaging with your firm for a while. Feedback is key that will help you improve your product.
Going too fast
As you have heard from the people if you have an idea, just start and go fast to get the right place. Sometimes it is a good idea. However, you must have seen businessmen who grew fast and fell down overnight. You can run the company too fast until your company understands customer needs.
Trying to grow fast, new businessmen make a lot of decisions at the same time, in the end, they cannot even focus on one decision, this habit is very harmful to new business. Matt Rogers says, the new entrepreneur should be taking one step at a time and celebrate the major accomplishment. Once your company come on the right track, you could make decision as much as possible.
Hiring the wrong team for Business
As you know how much import to hire a team for a company. having a good team company makes you proud but if you don’t have, you may no longer survive in the market. Recruiting the wrong team, it will cost you a big amount of money and waste your important time. in the end, you have to replace them by hiring someone else.
I know that starting a new company after hiring employees, it would be hard. So, my advice is for a new one, do not hire little Knowledge people. For your information, here I am not saying that you don’t hire freshers. What I want to say hire those people who are passionate about the job.
“I’d rather interviews 50 people and not hire anyone than hire the wrong person.” Jeff bozos
Overestimating the challenge of seed funding
Raising seed capital, it is not tough. So, the company’s owner cannot be self-congratulatory that hot seed has invested. A lesser number of businesses have ever achieved success due to their right names in the cap table. One more important thing, you have to aware of the all funding policy as well.
Underestimating the challenge of raising series a funding
Series funding is very effective for a new business where the business owner has the ability to move beyond bootstrapping to creating their new version. The advent of a relationship is very important for the firm’s success; it marks as well.
The owner of the company has to increase the game to entice Series financing. According to entrepreneur.com, an entrepreneur should have a great team, a true understating of acquisition costs and revenue matrices, a real product roadmap and may others like that.
Mental fatigue
Founders or business owners feel enormous stress. Well, it is natural because as a founder you work 80 to 90 hours work week. Also, you don’t care about day and night even sometimes you work when you are under the weather. Founders are often overworked and most weird thing alone.
As a founder, you have to care about something which is not related to work so that disappointments do not occur as a crisis point. A lot of people say that beginning time we should not take interest outside. It is a weakness, but it’s absurd.
