10 startups mistakes not to make again
We really loved the post by Martin Zwilling, Founder & CEO of Startup Professionals, Inc, pubblished on Alleywatch.com last 14th of February. He treated a topic that surely will interest many startups who follow us: what are the mistakes not to repeat, for a startup? According to his words, making mistakes is a physiological stage for startups and “investors recognize that founders usually learn more from mistakes than from success”, but the important thing is not to fall back into the same mistakes.
A startups failure could also improve the chance of getting a financing in the future, as long as investors realize that the errors of the past were useful to learn something. The risk is to not improve and to lose funding credibility . “As an active angel investor and startup advisor – Mr. Zwilling explained – I’ve seen many of the same stumbling blocks repeated all too many times”. So what are, in Zwilling’s opinion, the mistakes that startups should avoid doing again? Here below the list in short, we suggest you to take a look at the interesting Zwilling’s article (link at the bottom of this post).
- Suppose to already know what customers need or want: The fact that we love a solution does not mean that customers will love it too. So it would be better to investigate and interact with potential customers, industry experts and investors
- Confidently believe that you have no real competitors. Usually, no competitors means no market—or it means that you haven’t looked.
- Try to solve all the world’s problems with a first solution.
- Forecast revenue growth that defies business principles
- Dismiss the need to register any intellectual property
- Count completely on friends and family to run the business. (“Personal relationships and emotions have broken many businesses—so be careful”, this is the Zwilling’s recommendation
- Delegate cash-flow projections and transactions
- Hire helpers in lieu of people who are smarter than you.
- Build the company at the expense of employees. Being too aloof or too busy to lead and communicate goals and status to the team is a sure way to reduce motivation, morale and productivity and set the wrong culture.
- Try to build a business without specific milestones or a plan.
Do you agree? Have you already made some of those mistakes?