Many a time, people tend to focus so much on making money that they ignore the principles. And when this happens, an abrupt end to the business is inevitable. Below are some mistakes First-Time Founders make when starting a business.
- Ignoring market risk when starting a business
According to business moguls, ignoring or downplaying market risk is the single biggest reason companies fail. It has been gathered that most founders put too much emphasis on perfecting their technology platforms—which is understandable, given that many founders are passionate technologists—and not enough on making sure those platforms deliver real business value. Experts recommend that first time founders take six months to talk with potential customers to understand their needs and validate your idea.
- Going too fast
As I stated above, research have shown that a lot of first time founders are so much concerned about making that they are in haste to get everything done at a glance and so they ignore the red flags that could flag them out of business. Experts are of the view that it’s more prudent to conserve capital until the company understands what the customer really wants and at that point, damn the torpedoes. It is usually recommended to “Take one step at a time and be sure to celebrate the major accomplishments and milestones along the way.”
- Taking the wrong advice
In every facet of life, wrong advices have dealt people major blows. Reality is that the society is littered with people who will always have advice for everything but keying into wrong advices is just a step away from the end of a new business. It’s often said that most people with valuable insights are in very high demand while those with plenty of time to dispense advice typically don’t have much value to impart.
- Ignoring constructive feedback
Anyone who ignores constructive criticism is not ready to do business and sadly, this has been identified as one of the factors driving first time founders out of business – they don’t take constructive criticism. It is important that founders make room for constructive criticism so as get relevant feedbacks that can help the company grow and do better. Make use of social listening to unearth what people are saying about the company.
- Hiring the wrong team
Succinctly, getting the wrong team for a new business is perhaps one of the most unfortunate things that can happen to a first time founder. And the wrong team does not only mean skills but character and attitude. It’s important to sort the pile according to company needs, not flashiest resumes.
There is no spelt out formula for first-time founder success. But if they can de-risk their company’s path forward by avoiding these mistakes, the chances of achieving that world-changing vision increase materially. Never underestimate the process.