Every leading business in the world was a startup once. If they hadn’t started small, they won’t have made it to a huge success today. Like if you see the search giant Google, they started with a small search engine that was rejected by Yahoo. Now, they have grown so massive that they can buy 100 search engines like Yahoo. It’s the consistency, quality, innovative ideas and teamwork that makes them successful.
But we give up so soon that we even don’t learn from the failures. There’s a reason behind every failure and startup is a sensitive subject. Your teeny-tiny mistake can cost your whole startup. So, here I have collated a few tips that you should avoid in your startup as it can cause your failure.
1. Maintaining Leadership throughout
In one of the essay writing service website, it was mentioned that people usually confuse the concept of management and leadership. While, in leadership the higher authority like founders, CEO and COO inspire and transform their motivation to others whereas in management the team is responsible for taking decisions, managing the organization and tackling the employees. The problem starts when responsible people refuse to adopt change. Therefore, it is a must for entrepreneurs and responsible authorities to divide the roles equally and execute plans properly.
2. Publicizing Too Much
Quality is the prerequisite of your startup. If your product isn’t stable yet and you start spending a lot in its marketing, you’ll suffer the consequences. Prioritize your clients first and make your product worth the investment, follow the basics of marketing but don’t spend too much budget on making your startup big. If your clients are happy with your work, it will grow the word of mouth advertising and your startup will gradually move to success.
In addition, work on growing your referrals and talk to people about your business. On ground, marketing is the best approach to bring your startup on board.
3. Expanding the Staff
Do you know Ahref’s had a team of 50 people only and with each employee, they generate $800k employee?
Learning from this, the grown-up marketing giant made their product worth 50 people only, so how can we think of acquiring a team of 10-20 people in a Startup?
Hiring staff is expensive as the skilful ones don’t come in even a mediocre budget. So, you should acquire people only who are the need of the hour. If possible, hire fresh talent, keep them engaged with your company as they remain loyal for the long run.
4. Assuming that Acquiring Customers is Easy
When creating a business model entrepreneurs think that it is easy to get customer attention. They never research whether either their business model is accurate or not. The reason behind this is that most of the time idea never remains for long. Like in the start it may get too many customers but afterwards, the model may become too costly for the business.
5. Autocratic Leadership
Autocratic leadership is the style of leading an organization in a way in which only a person or two have control over everything. They are responsible for taking all decisions and don’t encourage team ideas and innovation. This resists the employees to bring ideas to the table that can lead the startup to success. As employees are micromanaged for everything, so they think 100 times before taking action. This leadership style can cost your startup and impact its growth.
Although there are many reasons that may cause business failure. But every business has different concerns; depending on the business type. What is required most is the proper research and application of processes at the right time. Mainly, looking at competitors and solving different case studies of startup failure may help to minimize the risk.