Source | The BlogOn : By Rajesh Giribuwa
Every startup originates based on an idea and sometimes your hobby, can turn into a business. Lack of entrepreneurship knowledge and experience can lead to business failure. There are lots of factors, which account towards business success or failure and these mistakes need to be considered as the lesson learn for future endeavors.
Every entrepreneur should invest time & effort to know more about entrepreneurship by spending valuable time in reading publication, books and regular interaction with the fellow entrepreneurs. Due to lack of prerequisite on running the business startup, the entrepreneur makes a terrible business mistake and make use of shortcuts that they feel will save time and money.
I would express my perspective on the shortcuts that can kill a startup business:
1. Avoiding written Business Plan
Always try to bring your ideas on the paper and come up with the business plan which has a business model attached to it, as the business plan is essential for you and not for the investor. Remember business plan channelize the execution of the ideas into a business which can turn up into a startup.
2. Over-passionate & Over-confidence
Your passion should match with market needs without this, your idea will result in loss-making business, as every great idea can be a viable business. Confidence is always required to work on any business idea, but it should not overrun as it may lead to failure and may built-up discomfort among others.
3. Not discussing your new startup with current employer
It is a best idea to discuss you new venture with your employers as it will give you more insight into your thought process on execution of idea into business and will also help you to understand whether there is any conflict of interest or violation of non-compete clause, which will help you in avoiding any lawsuit in near future.
4. More Dreaming, Less Execution
On the ground execution of the idea and turning it into business is more important as dreamer can motivate the teams but the end customer always looking for the benefits & solutions to their problems. As a practice, always make sure you are comfortable and able to tackle the risk, issue, and uncertainty, tough decision while executing the business idea.
5. Jumping into Crowded Niche
A person will be always comfortable with the flow, which has similar existing player as they feel that they are also one of them, but being with the niche domain/ideas will bring more chance towards success and less competition over the other players.
6. Developed Product before Marketing Start
It is difficult to create a brand in the market as it takes a long time to build market drive and establish yourself in the market. So it is better to start the marketing before the product is developed. In the today’s digital world it takes more time and money to create your brand value.
7. Neglecting operational cost
Try to create the customer base based on your innovative idea that can monetize to pay your support staff, marketing and operational cost, hosting cost and more. Without a proper operational plan, it will be difficult to execute the startup business.