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4 Crucial Startup Mistakes That Can Kill Your Business: How You Can Avoid

4 Crucial Startup Mistakes That Can Kill Your Business: How You Can Avoid

Success doesn’t come easy, and it certainly doesn’t come without optimism. That is precisely why so many entrepreneurs invest their heart and soul, and of course money, into an idea or business that has a 75 percent chance to fail. This sure is an extremely discouraging figure, but don’t let it discourage you from giving your all to turn a dream project into a reality.

Although staying optimistic about your startup’s chances for success can play a vital role in deciding its fate, there are quite a few game-ending mistakes that can really strangle your business and leave you in a state of despair. Fortunately for you, we’ve identified the most common of these mistakes and gathered tips on how you can avoid them.

1. Repeating the Management Sins of the Past

Although there’s no harm in idolizing the management maestros of the past, making them an inspiration is not advised. Remember, trying to run the workplace affairs like Steve Jobs or some ruthless leader will not bring you the same level of success. On the contrary, it will probably result in a complete meltdown. The patriarchal, my-way-or-the-highway approach just will not work in the 21st century because the workplace has changed and the workforce has grown a lot more diverse.

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There’s a necessity to foster collaboration in the workplace. Don’t be a dictator, but rather be a democratic leader who lends an ear and gives value to the surrounding voices. Don’t just push your employees to perform, but also groom them to be future leaders.

Most importantly, learn to put your trust in them through the use of employee monitoring solutions like cell phone spy apps and other tools. Just remember to communicate the purpose behind the deployment of these monitoring tools with your employees and remove their concerns pertaining to privacy, otherwise you’ll find yourself facing a revolt.

2. Confusing a Good Idea for a Good Business

A lot of startups get excited too quickly about a seemingly great idea that they’ve come up with. Quite frankly, ideas are a dime a dozen. They may seem special and unique to the entrepreneur, but this perceived grandeur can easily be a fallacious assumption. Investing time and money in an idea that hasn’t been properly scrutinized and tested in the market can drain a lot of resources without bringing the expected returns, which in turn can cripple the startup financially and damage the entrepreneur and their entire team emotionally.

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Coming up with an idea that looks and sounds great is only the first step. The next step, and perhaps the most fundamental one, is execution, and that begins with market research. Failing to invest enough time in researching the potential success of that idea, misinterpreting the results, and using inaccurate data to forecast demand can wound a business critically.

Keep in mind that although a great idea may be the seed of success, only the seeds that are planted in rich soil and favorable conditions grow into full-fledged fruit-bearing trees.

3. Targeting a Tiny Niche Market to Avoid Competition

So many entrepreneurs are guilty of trying to play it safe by targeting a marginal niche to avoid competition. The returns may not be as high as they would probably want, but that is a compromise they are willing to make in order to enjoy a bit of security.

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This huge misconception has the potential to cause panic in future and eventually make the entire startup collapse. The truth is, competition simply cannot be avoided without avoiding good ideas. Every novel idea, when successful, inspires a dozen more entrepreneurs to imitate it with the hope of reaping similar rewards.

If you come up with a great idea and superb business plan, competition is inevitable. There is no point in running away from it, and choosing a small or obscure niche is certainly not going to help. Therefore, execute your idea, build your startup, aggressively chase success, and brace yourself for competition.

If you are offering great products or services to your customers, your competitors will have a tough time snatching them from you. Have faith in your idea and ability to execute it well, and stop letting the fear of competition restrict you to a tiny corner of a massive market that is waiting to be captured.

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4. Letting Perfection Get in the Way of Progress

A lot of entrepreneurs are so obsessed with attaining perfection from the get-go that they completely take their eyes off progress, which really should be the primary focus during the infancy stage. The premature quest for perfection can cause paralysis and hinder progress, which in turn can effectively choke a business to death. It’s important to realize that in order to walk, a child must first learn to crawl.

Just being average is not good enough for a lot of startups, and rightly so. But they really need to look at the internal and external conditions, and then decide if it’s the right time to step on the gas pedal and accelerate towards greatness. If they accelerate too early, they face the risk of bringing their progress to a halt due to lack of available resources or missing out on excellent opportunities.

In order to ensure a steady and healthy growth of your business, you must conduct a cost versus benefit analysis of your activities. This would help you prioritize. Wasting too much time and resources on elements that are great for business but not integral for its survival and growth is bound to prove toxic without proper planning and assessment. You need to measure your startup’s success in terms of progress, not perfection.

Featured photo credit: JD Lasica via flickr.com

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Tayyab Babar

Tayyab is a PR/Marketing consultant. He writes about work, productivity and tech tips at Lifehack.

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Last Updated on May 15, 2019

10 Most Successful Entrepreneurs and What We Can Learn from Them

10 Most Successful Entrepreneurs and What We Can Learn from Them

Apart from making crucial decisions for their own businesses, entrepreneurs innovate and grow their ideas. Albeit there being no cookie-cutter answer that fits everyone’s experiences, taking a look at some of the most successful entrepreneurs today, you might spot some similar traits and characteristics.

Starting and nurturing a business entails a great amount of hard work and commitment. However, for aspiring entrepreneurs who are prepared to dedicate themselves to their vision, here are 10 most successful entrepreneurs you can learn from:

1. Melanie Perkins: Know Your Worth and Keep Trying

    Melanie Perkins founded Canva, a Sydney-based business valued at $1Billion having successfully raised a number of rounds of successful funding and boasting more than 10 Million users in 179 countries.[1]

    She told BBC that one of the biggest challenges she faced getting into the business was talking about her company’s accomplishments when she first got to Silicon Valley. She attributed this difficulty to a cultural difference where Australians tend to ‘talk down’ their achievements and this would slow down her fundraising progress for a few years.

    Despite hundreds of rejections, Melanie emerged three years later with a much clearer strategy and stronger investor pitch that prompted a series of fundraising rounds netting the company $82Million of funding in total.[2]

    2. Bill Gates: Keep Learning and Exploring

      If you don’t know Bill Gates, you likely know the company he founded – Microsoft.

      Bill Gates’ story is a prime example of nurturing an idea that might seem out of this world but make sense in the future. One of the most successful entrepreneurs in history did not complete his degree at Harvard University to pursue a vision that the technology would soon become the future.

      He told a white lie to Altair, saying that he had made a computer program for them, therefore pushing himself to create a system that would change modern history.

      “The most important speed issue is convincing everyone that the company’s survival depends on moving as fast as possible.”

      Gates’ success is built on self-improvement and the seeds of an idea.

      3. Elon Musk: Never Stop Innovating

        Traditional thinking suggests that in order to become a successful entrepreneur, one must focus in a single field or industry.

        Elon Musk, however, breaks that rule.

        Today, the multifaceted tech entrepreneur, investor, and engineer advocates for the diversification of skills and businesses by delving into various fields of interest.

        When done right, skills in a single domain can be carried over then applied into contrasting industries to create something new the world might need. Musk owes his accomplishments to a constant thirst for knowledge.

        Having birthed Tesla and a myriad of products across the arenas of aeronautics and software design, Musk continues to evolve as an entrepreneur and plans to innovate for the long haul.

        4. Richard Branson: Develop People First

          British entrepreneur Richard Branson founded Virgin Records in the early 1970s. Virgin Records has since grown into the Virgin Group, today responsible for over 400 companies.

          The billionaire is strongly particular about working with a team that shares his core values and aspirations.

          Branson believes that managing a business can become taxing, thus he acknowledges his employees for putting in the effort that they have.

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          A good leader knows how to raise morale for positive productivity. Utilising emotional intelligence and compassion is a game changer in seeing results within a team.

          Branson’s supports the idea of nurturing a positive work environment, with the belief that credentials must go hand-in-hand with an enthusiasm for work.

          5. Jeff Bezos: A Relentless Focus on Customer Satisfaction

            Having founded Amazon, Jeff Bezos is known to be one of America’s most successful entrepreneurs. The e-commerce pioneer fixates himself on angry customers with the belief that a business’s loopholes are found in the experiences of unsatisfied customers.

            For the 8th year in a row, customers have ranked Amazon as the number one in customer service (according to the American Customer Satisfaction Index).

            While numerous companies ignore unhappy customers, Bezos found success in learning from reviews and surveys. By focusing on customer service, Amazon shows they care, both for their customers and for rising above their competitors.

            While praise and recognition are signs that a business is accelerating, criticism is an opportunity to improve a product or a service.

            6. Mark Zuckerberg: Start Small, Think Big

              Valued at over 55 billion dollars today, Mark Zuckerberg built the first version of what would become a social networking giant in his Harvard University dorm room. As one of the world’s youngest entrepreneurs, Zuckerberg undoubtedly took countless calculated risks to get his brilliant idea to its current status with 2.38 billion active monthly users.

              “The biggest risk is not taking any risk.”

              He’s always daring to explore with a fearless mindset.

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              The young tech entrepreneur never shied away from innovating outside of the box. Soon after Facebook became a hit to users and advertisers, big corporations took interest in buying Facebook from Zuckerberg.

              However, he took the risk and decided to stay with his creation. Turning down billions of dollars offered by Yahoo CEO, Terry Semel, he envisioned turning his brainchild into something much bigger than what it already was then.

              7. Steve Jobs: Live Your Own Dreams

                Steve Jobs lived a rocky path all his life and an aspect of which is a tumultuous career.

                The founder of Apple endorsed his beliefs on the temporality of life and limitations of time. He preached about the importance of working on the very legacies people wish to leave behind, an achievement he’s undoubtedly etched into the the archives of human history.

                Never one to hide under someone’s shadow, Jobs did not live by anybody else’s principles so he formed his own. He tirelessly dedicated himself to building a unique brand of products that became the benchmark for contemporary technology.

                After his highs and lows through his brief battle with cancer, Jobs concludes with yet another lesson to takeaway from his remarkable life. “No matter how much money you have, even the richest man can’t buy time.”

                8. Warren Buffett: Balance is Essential to Success

                  Despite being the third wealthiest person in the world, Warrant Buffett sported a frugal lifestyle for most of his life.

                  After buying a house in Omaha, Nebraska for just above 31,000 dollars, he has lived there since 1958. As a leading investor and a founder at Berkshire Hathaway, Buffett believes in setting aside an amount to save and spend only on necessities.

                  With a long term goal as a top priority in mind always, treating oneself can be sustainable once in a while. He advices to save money by deciding first and foremost what aspects to scrimp on and what aspects to splurge on to ensure a happy and balanced lifestyle.

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                  9. Jack Ma: Never Give up

                    On every journey to success, everybody stumbles and arrives at roadblocks. Some more than most, like Jack Ma, who survived countless rejections and failures only to get back up and brave every storm.

                    Ma is the founder of multinational technology conglomerate Alibaba Group. Despite being rejected to Harvard after every one of his 10 applications, Ma was never defeated.

                    His grit and tenacity is a fine testament to the fact that grades do not determine a future. While qualifications on paper are important, the development of skills and an attitude is just as helpful in making a recipe for success.

                    Despite finding himself in the verge of bankruptcy in the 1990s, Jack Ma possessed the resilience to put one foot in front of the other until he finally made it. “It’s important to have patience,” he says.

                    10. Tan Min Liang: Passion Can Pay Off

                      Tan Min Liang is the founder of the leading high-performance gaming hardware, Razer. Always on the look out for new opportunities to connect and scale his business, Tan has been bold in making many of his life’s decisions.

                      Having deviated from a traditional path set by a family that consists of doctors and lawyers, Tan was to find his life’s work and passion while gaming with his older brother.

                      The idea was simple: there were so many games out there to play, however, there were hardly any gaming equipment to match this.

                      So he dropped out of law and began going a different direction, into creating solutions in the gaming industry. At the start of 2019, Tan wrote to tech luminary Elon Musk to which Musk’s reply suggested of a joint venture between two of the most successful entrepreneurs today.

                      Final Thoughts

                      In today’s cutthroat world, the road to becoming a successful entrepreneur is a long and arduous process trailed with ups and downs. A valuable lesson that a good hand of entrepreneurs would love to convey to aspiring entrepreneurs is to keep the spirit of innovation and to explore uncharted waters.

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                      Learning from experience and failure is one direction to a desired end goal. Exhibiting the same dedication and grit so many entrepreneurs have through their unexpected careers – today’s budding visionaries ought to hang on their dreams and leave room for improvement along the way.

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                      Featured photo credit: Patrick Tomasso via unsplash.com

                      Reference

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