You’ve probably heard that 90% of startups fail.
Have you ever wondered why some startups succeed and others fail miserably?
If you’re new to the tech startup industry, you’ve got to learn from the mistakes of the startups that came before you.
If you can manage to avoid the same mistakes that brought down some promising ventures, then you’ve got a chance of making it big time.
Do you want your startup to succeed? Check out our 8 common mistakes you need to avoid!
1. Thinking You Don’t Need Anyone Else
Around 69 percent of startups begin with one entrepreneur at home.
It’s not unusual for the startup to have one founder. If you want to realize your dream, then you may not want anyone else clouding your vision.
However, it’s important to remember that you can’t do everything by yourself. For starters, setting up your company is extremely time-consuming and energy intensive.
You need to take advantage of your network of contacts. This could simply be the emotional support of your family and friends through the lows and the highs.
You may also need to make the most of other people’s expertise and knowledge. For example, hire someone to design your website or consult a marketer on your logo.
2. Not Doing Your Homework
“The dog ate it” excuse never works.
There’s no shortcut. You’ve just got to do your homework.
Just because you think you’ve come up with an amazing business idea, that doesn’t mean you’ve got a surefire route to success.
Market research is an essential component of transforming your business idea into a successful business venture.
Failing to consider the data. Neglecting to research the facts. The failure to look into your competitors.
Without proper research, you’re not going to be successful. You’ve got to know your stuff before you launch your startup.
In case you’re worried about forgetting something. Here’s our ultimate startup checklist to keep you on track.
3. Putting Too Much Faith in Consumer Feedback
You’ve got to have a lot of self-confidence to make it as an entrepreneur.
You’ll get setbacks along the way. People will always tell you that you can’t make it happen.
However, the same goes the other way around as well. You may also encounter positive feedback from consumers.
“Your product sounds amazing” and “I would definitely buy one of them.” You may start to hear this a lot when you setting up your startup.
However, what people say in feedback and what they do is totally different. Would they actually buy your product or pay for your service?
Don’t over-value what people say. Look at what they do instead.
4. Hiring the Wrong People at the Wrong Time
As your startup gets up and running, you may start to get other people on-board.
However, your hiring decisions should be taken extremely carefully.
You should make sure you examine resumes, interview and get references from previous employers.
You can’t afford to make mistakes early on with your recruitment. Make sure you only hire people who are definitely going to improve your operation.
5. Expanding Too Early
If things are going well, you may think it’s time to expand your business. However, scaling your startup increases your risk ten-fold.
You shouldn’t grow your enterprise unless you’re sure you’re ready. If you fail to make it in a bigger market, this could damage your brand beyond repair.
Too many startups try to grow too quickly. You may be better establishing yourself in the market you’re already in. Don’t get too greedy.
6. Picking the Wrong Location to Launch
Even in the age of the internet, your physical location matters. Your business needs to make connections with others.
You’ve got to consider where the expertise could be for your startup. Are the consumers close by?
There’s a reason why tech startups are concentrated around particular places.
Silicon Valley has for a long time been the center of the tech industry. However, there are many more locations to consider.
Why not set up your business in Seattle? Portland is another rising tech city. The underdog of Boston may be on the cards too.
Whatever you do, make sure you make the right decision about the location of your startup.
7. Thinking Too Small
Your startup should definitely attempt to target a niche market. However, this shouldn’t make you think small either.
Many startups think that focusing on a small crowd means they stand a chance. The competition isn’t so tough around niche areas.
Once you dominate the husky owning over 50-year olds who wear bowler hats, where do you go from there?
Niche markets are great to get a foot into the market. However, make sure your brand can appeal to people beyond the niche as well.
8. Too Rigid in Your Brand
If you’re too rigid with your brand, you’re doomed to fail.
Nokia used to manufacture rubber boots. Now they’re a telecommunications company.
Odeo was a podcast publishing website. Now it’s better known by the social media network Twitter.
As market trends change, you’ve got to be prepared to pivot your business. Adaptability in the face of competition could be your biggest asset.
Common Mistakes in the Tech Startup Industry
You don’t have to make the same mistakes as other startups. You can learn from what became before you in the tech startup industry.
Keep in mind the mistakes on our list. Remember to do the right things to avoid them happening to you.
Do you want to learn more about the mistakes startups make? Check out this blog post on the lessons startup founders learn quickly.
