The idea of starting a company is always a momentous occasion for an entrepreneur. An occasion filled with joy, hope, and euphoria. But, all this could soon turn sorrow, hate, and despair if certain common mistakes are not avoided. There are several companies and entrepreneurs out there that started out with the best of intentions and highest of hopes, but couldn’t pull through in the long haul. So, let us take a look at few of the most common mistakes most make when starting a company.
Finding a right companion is always necessary for any endeavor or venture. For business, in particular, this is a desirable aspect. But finding a people with the right mindset and the same intentions as you is a difficult task. That is why often entrepreneurs become tempted to start a venture. On the surface, it may seem like a great idea. You get full control over what you are doing, there is no confusion, no distractions, and the obvious monetary benefit. But, once you get into the actual process of starting a company, the many hurdles that are encompassed in an entrepreneur’s life starts unfolding. This is when one realizes, ‘starting a business is no picnic!’. So, it is always a good idea to have people who can support you through the highs and lows. Even if you are not planning on partnering with anyone, it would be wise to take help from friends and colleagues when starting out. Hey, even a certain badass intergalactic smuggler with the word Solo in his name needed the help of that weird bear from time to time.
While the saying ‘Not everyone can become great, but greatness can come from anywhere,’ may go well for artists and movies about rats that can cook, but not for business establishments. At least not in this day and age. Location is a key aspect of a business, be it a small coffee shop or a space robotics company. Access to resources, people, and good exposure is vital for the development of a startup. But that is not the only thing that would matter. Because like always too much of anything is bad. And if you pick a spot that is filled to the brim with companies and there is a rat race on for almost everything, it is going to hurt your business rather than help it. Be picky when it comes to location. Choose a spot where you will find enough opportunities.
When starting a company it is easy to sway two ways when it comes to launching. Some may feel that it is better to get on the safer side, and gather as many resources as possible and wait till everything seems right. Others may feel that they can make do with what they have and launch prematurely. Both are recipes for disaster. Waiting too long to launch a company can lead to you exhausting all your money and resources and it is also possible for the competition to gain an upper hand in the market where you seek to set up. Showing haste with the launch will put you in a lot of trouble especially when you are faced with certain challenges and you didn’t gather enough resources and manpower to tackle. Choosing the most opportune moment to launch is an essential part of entrepreneurship.
Quite often Entrepreneurs feel that maintaining a status quo is good even when there is a good opportunity to expand. And it does make sense, if your company is doing well enough, there is no need to do so immediately. But, waiting too long may lead you to a situation where it is too late to expand and your business may get into hot water. So always look for signs and opportunities where expansion is a viable option. Of course, scaling before you have the resources could lead to much more drastic results.
Having investors is a complex process. There is a lot at stake for everyone. Finances, resources, and productivity come into the equation when investors are involved. As an entrepreneur, you are obliged to indulge their requests return wise and from time to time their vision for your company. But this could lead to all kinds of problems for your company. An investor’s vision could involve implementing steps that could cause drastic long term and short term effects which could at best case scenario lead your company in a different direction than what you expected and at worst cause your company to exhaust resources and go bankrupt. So it would be wise to show a level of discrimination when it comes to taking ideas from investors. Although keep in mind it would not be wise to completely shun them away either. Try to find a balance in the way you deal with the investors.