The 3 Biggest Mistakes Startup Owners Make
One of the most risky times for any business is in the very beginning. With more than half of new companies failing before reaching their second year, startup owners have their work cut out for them. When managing a new business, beware of these mistakes.
The first major problem is forgetting the importance of communication with clients. When focusing on creating and refining a product, it’s easy to overlook this seeming detail, but listening to customers and potential customers should be inherent in every part of a new business. Good communication skills are absolutely key in sales, whether it’s knowing when to depart from the planned pitch or having a sense of when to close the deal. It’s also crucial when planning the company’s direction, to know exactly what customers are looking for in order to sell it to them.
Another major mistake is lack of flexibility. While startup owners need to be committed to their goal for a company, they must be careful not to let that vision blind them. Having a business plan is essential, but any new company has to evolve as it enters the market, adjusting to the demands and prospects of reality. There is no way to account for every contingency ahead of time, so reevaluating expectations and taking action when needed is required to meet the unanticipated challenges that can arise. Some startup owners can also run into trouble trying to meet all their goals completely and on time, standards that may prove impossible to achieve. Instead of wasting time and money striving for unattainable perfection, it’s better to prioritize on achieving the most important aims of a business.
Moving too quickly is the final, and sometimes fatal, mistake many new business make. Agile reactions are necessary for a company to stay afloat, but with the uncertainties of starting a new business, there isn’t much room for errors. Leaping into investment opportunities or hiring new teams without careful consideration can lead to more trouble than is ultimately worth it. An angel investor who tries to take the reins of the business, or new employees who fail to comprehend a company’s aims and are just looking for a paycheck, can lead to disaster. Don’t plunge into every seeming opportunity that presents itself without first taking measure of the risks.
Managing a new business takes determination and ability, and also the knowledge to make the right calls. By staying aware of the chief mistakes to avoid, startup owners can chart a successful course for their company.