Synonymous with innovation and risk, starting a business is both exciting and intimidating. With a significant amount of money, energy, and time invested in a startup, even small mistakes can lead to major issues that can threaten the company’s existence. To avoid these common startup bloopers and sustain success, every founder should actively strive to avoid the following missteps.
- Failing to Create a Meaningful Brand Identity
An often cited mistake that can have serious repercussions for a business is the failure to establish a recognizable and unique brand identity. A key component of a startup is the development of an identity that is bigger than the sum of its parts. Establishing the company’s core ideals, values and personality and communicating this story clear and consistently can be a deciding factor between success and failure.
It shouldn’t be underestimated how quickly a startup’s brand identity can become muddled and dispersed. To distinguish a brand in the marketplace, it’s essential that the company’s mission, values and goals are clear and remain consistent. This can help attract the right customers, partners and investors.
- Spending Too Much Money Too Quickly
When starting a business, the temptation of course is to want the latest technology, the newest marketing trends, or the fastest internet speeds. As exciting, flashy, and attractive as investing in such items might be, most startups don’t have the necessary funds to spare.
When beginning a business, it’s essential to have a good grasp of the company’s financials. That means having a clear understanding of the money coming in and out before the big investments.
Prioritizing cash on hand is essential for startups. By managing the cash flow, it gives the founder the financial flexibility to make shrewd investments. For instance, if a company needs to develop a website, investing in a freelance web developer might be the more economical option compared to developing the website in-house.
- Failing to Actively Monitor Competitors
It’s not enough to just come up with a great idea and launch the product. For a business to be successful, the founder must be cognizant of the competitive landscape. Failing to stay apprised of the competitors’ new products, tactics and strategies can stunt a startup’s growth or even cause them to fail entirely.
For a startup to be successful, it must monitor the competition and adapt accordingly. Keep a close eye on the company’s competition and stay current on the latest products available. Don’t discount competitors’ prior successes as well. The more a startup is aware of its competition, the better equipped it will be to set itself apart.
- Not Prioritizing One’s Mental and Physical Health
It’s easy to get caught up in the hustle and bustle of the startup world — attending meetings, managing teams and launching new products. While it’s important to grind hard and persevere, it’s also essential to ensure the founder’s physical and mental health is well maintained.
Foregoing sufficient rest and nutrition can put immense strain on the founder — not to mention impairing the founder’s judgement and decision making. Working long hours and skipping meals can seem to be an efficient way to get things done faster, but these habits are unhealthy and can ultimately hurt the business more than help it.
- Not Asking for Help
If there’s one thing every successful entrepreneur knows it’s that no one succeeds alone. There’s no shame in asking for help, and it’s an essential component of getting a business off the ground.
The key to getting the most out of help is to know the right resources to access. From managerial coaches or mentors, to other people within the company — seeking out the right people can help a startup avoid pitfalls.
Running a successful business tends to be a roller coaster ride of ebbs and flows. It’s important to remember that failure is often the stepping stone to success — and that mistakes are inevitable. That being said, with the aforementioned common missteps, every founder can avoid such missteps, and thus increase success potential and potential longevity.