Most startup enterprises do not live to the dawn of the day. I have been privileged to mentor over 500 startups and I realized that the problems facing these startup enterprises are recurring. You can avoid the problems faced by the faulty startups to achieve maximum success in your business. Below are highlights on these flaws.
Unscalable and small ideas
If you are notable to account for the number of potential customers you can boost for in your business, investors will be biased in investing in your startup. Investors will rather support the next Google and startups whose products will be accepted by the masses than they would a small business whose product is accepted by few people.
Wrong Market Positioning
Some employers launch their startups without making a thorough research on the business but rather they just think that they have a good idea and start running with it. Investors will rather support a startup with well researched idea.
No effective marketing strategy
Most entrepreneurs just focus on building and developing their products that they seldom strategize on how to market those products. They seldom think of how to generate growth capital in their ventures.
Lack of focus
Some entrepreneurs try to be jack-of-all trades but in the end of the day, they end up being master-of-none. Launching one business is follows a difficult process not to talk of when you are launching more than one business.
Lack of passion or persistence
An entrepreneur will never be able to stick and keep on with the startup both in good and bad times if he does not have passion about his product. As an entrepreneur, you need to develop persistence and have a mindset of not giving up irrespective of the odds and bottlenecks that comes your way. A persistent entrepreneur will be able to decipher the best way to get past the hurdle and impediment.
Wrong or incomplete leadership
Incorporating a Fortune 500 team inside your startup team will cause a crash. This is because such a team will not think like a typical startup would. Moreover, investors are not going to support a single person but rather they want to support a team.
Lack of motivation in the team
The management team is very important for the success of the startup. In other words, you need to give them incentives to encourage them to forge ahead. Your management team should be given as much incentive as the founder is given. You can set up between 15 and 20 percent of your revenues and profit made by your company for their compensation. This will go a long way to encourage them and ensure that they are more loyal to your business.
Lack of a mentor or advisor
You should not be alone in the whole thing. As an entrepreneur, you need not face the battle all alone. The ecosystem of many cities is such that you can get the best mentorship and advice.
Lack of revenue model
Obviously, you may not have a revenue model from the first day, however, you need to have a revenue model as you go on in the business. More so, you should ensure that the revenue plan is material and based on credible assumptions. This will help you to attract more investors.
Less capital than needed
You should able to raise enough money in your business to build your product and carry on. The amount raised should be enough to take you for the next 12 or 18 months in case an unforeseen condition occurs. Better still double the capital you think you need to make room for unexpected negative conditions.