Establishing a venture for the very first time is a difficult and learning process. Especially when you know nothing about the trade and you are completely unaware of the tiny little aspects of entrepreneurship. In such a situation you need to follow strict laws and regulations that will guide throughout your journey and help you sell better products or give better service. To do this successfully one needs to be aware of the common mistakes that founders make while starting their ventures. Once you are familiarized with the flaws you can ensure that you do not repeat.
The most grievous mistake that can be made is, not knowing the reason behind the creation of a startup. Find out the purpose behind your startup. Is it because you want to contribute in some way to the benefit of the society? Or may be you want to be independent financially and do something of your own. Whatever reason be it, you must make it a strong stand so that you don’t seem to be ghost working and be aimless. Always remember one mantra for startups “Failure is never an option”.
It is foolish to be too confident about the capital. Don’t presume that the bank will grant loans on an immediate scale. Banks tend to avoid giving loans to new entrepreneurs without any previous trade experience. If you are apprehensive about self-funding then borrow money. There are various community banks that readily grant loans to self-employed people. The only point to be kept in mind is that you need to mention your security such as house, car, shares in the market, etc. If you are unable to pay back the money, then the bank has every right to acquire the security items. The best way out of this issue is to consult an expert financial consultant and do all the economy planning accordingly.
[alert style=”white”]It is extremely wrong to believe that your probable clients will find you of their own and will wish to try your products. Since you already know the customers you are targeting at, spend valuable moments with them in assessing their needs and revealing to them how your product can satisfy those needs. It is your responsibility to make your customers step out of their regular market arena and experience the usability of your services.[/alert]
Strategize your exit plan from beforehand. This is because every product has a shelf life. Once it is crossed you can’t extract any more juice out of it. Neither can you sell the startup rights of a failed venture. Investors are energized if the founders have similar insights to them. Founders must know what is the correct time to wrap it all up and start with a different idea.
There will be instances when your business will be in the dark and there will be bleak chances of success. It is up to you to find out what to do next that will work both for you as well as your startup.