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Entrepreneurs are not born; they are created. That said, you don’t want to start a business you cannot end. Some people venture into entrepreneurship only to run out the next day.
Statistics show that a whopping 90% of business startups crash and burn before reaching their 3rd anniversary.
Others also stay in the game and push through the muddy waters until they emerge winners. Every businessman is prone to making mistakes. However, some mistakes are more costly than others.
Expensive mistakes can blow away your business before it grows its horns. The above grim statistic indicates that failure always looms over the heads of budding entrepreneurs. But that shouldn’t be your portion since you have found this article today.
Here are the top 4 Mistakes that kill business startups. Avoid them and steer clear of failure.
Beginning with Too Many Founders
Of course, two heads are better than one. But you don’t want to found a business with a tall list of co-founders on the registration sheet. The fact is that when you have too many team members, they can pull your business in multiple directions. And this will rather stagnate your growth. Whose idea are you going to listen to? Mine, yours, or his?
Bottom Line: Too many team members can kill your business, especially when there are know-it-alls among. Start your business as a sole entrepreneur, or with 2-3 co-founders.
Poor Marketing Tactics
You don’t need to be an expert marketer to start a business. However, as soon as you start a business, try to become a marketing specialist. Effective marketing campaigns will help you reach out to larger audiences. In the age of the internet and social media revolution, you may want to leverage these tools to market your brand.
Ignoring marketing is like you’re running your business in a dark room. Consumers will find it hard to locate you.
Lack of technical skills
If you are a founder who has zero to no technical skills, you may want to ensure that your co-founder has good technical skills. When you lack a strong technical team as a founder, you may end having to hire skilled employees to handle technical tasks. The question is how much does your startup make? And can you pay your technical employees from the word go? If no, then your business may fail.
Misuse of Funds
Depending on where you source your capital from, the future of the business may lie in how you are able to utilize your little resources effectively.
When you take a heavy loan to start a business, misusing it can spell doom for your business, and land you in insurmountable debts. Scrutinize your expenses, and ensure that you cut every coat according to your cloth.
Conclusion
In summary, the difference between successful entrepreneurs and unsuccessful ones boils down to mistakes. Avoid the mistakes above and many others to save your business.
