4 Mistakes you avoid before launching your start-up
- October 15, 2017
- Posted by: Ahmed Farouk
- Category: Project Management, Soft Skills
Startup … As you know, we here in Egypt face hundreds of start-ups every month. Every one of them thinks that it’s easy to run his own startup until he collides with reality and discovers the opposite
If all startups were successful, everyone would be an entrepreneur. Starting up involves risk, a lot of it. There’s a very real probability that your startup will fail. It might have nothing to do with how you ran it; it could be based on a number of factors that are out of your control. Although, it could also be because of the way you ran it. You often need more than good intentions for a solid business plan.
So we get in your hand below 4 mistakes you should avoid if you want to run a successful startup
- Bad Location
The location of the business or rather the client delivery centers are the crux of any business.
Simply you can change everything about a house except its location. So, if your startup is in a bad location, you can’t change the nature of that location.
- Not paying for expertise
We say this with full respect: You’re not good at everything. You can’t be. And yet, every part of a business should be done expertly — particularly the tricky stuff like taxes and legal issues. “Structuring not only the company but also potential investments in the wrong way can come back to haunt you,” says serial entrepreneur Greg Rau, COO of Ridago, a hardware engineering firm based in Oregon.
So where it really matters, don’t download some free online guide or think you can handle it yourself. Find an expert whose job is to know exactly what you need to do. The place Rau says entrepreneurs are particularly in need of an expert eye: “When drafting the terms you accept investment on,” he says, “if you don’t pay attention to things within the terms sheets, like liquidation preferences, that could hurt you on the future sale of the company to the point where the founders may end up with nothing.”
- Single Founder
How many startups that have met with success have only one founder?
as a single founder you have almost zero chance of getting funding from Paul Graham. Why? It’s not a coincidence, he says, that founders who succeeded did so as a team of at least two.
In most situations, it’s an incredibly daunting to tackle all this alone. A little help from friends and professional colleagues can help in launching the startup.
4- The wrong time to launch
Launching too slowly has probably killed a hundred times more startups than launching too fast, but it is possible to launch too fast. The danger here is that you ruin your reputation. You launch something, the early adopters try it out, and if it’s no good they may never come back.
So what’s the minimum you need to launch? We suggest startups think about what they plan to do, identify a core that’s both (a) useful on its own and (b) something that can be incrementally expanded into the whole project, and then get that done as soon as possible.
Finally, you should know that there are a number of factors that play into the success or failure of your startup. There are ways to account for almost all of them, but success is never guaranteed.