Failures and hurdles will definitely come but it would ideal if you could avoid a few obvious failures by learning from others.
While starting up, it is easy to make mistakes. While making mistakes is human, it is actually stupid to make mistakes that others already committed and suffered. It is important to learn from others’ mistakes so that you don’t suffer as well.
Here are four common mistakes that led to the failure of many a business in recent times:
Starting is Easy but Ending is Hard
Don’t be under the impression that starting up is the most difficult part. Starting up is actually the easiest part. The problem or the issue is with ending it and knowing when and how to do it. There are many who get carried away even when they know they are going to fail. They keep trying more and more angel investors to save their company but all goes in vain and they are left in debt with no other option but to close the company.
Watch the warning signs and know when it is time to let go. Give it everything you have but if it still doesn’t work, identify the right time to end it.
Too Much Money Brings Complexity
This is something that many people fail to realize until it is too late. Earning money or raising a lot of money may seem like a very good thing to you but it spoils you in a way. You end up hiring a little too fast. You also hire more than you need and you start building so many layers that everything gets very complicated. That is why not raising too much money actually works in your favor. It makes you agile. It makes you smart.
Take it Slow
There is no need to try growing suddenly, out of nowhere. Even if you have the potential to do so, it is ideal to take it one step at a time so that you don’t go out of control and make silly mistakes. One of the most common mistakes of founders is micromanaging. You expand your team but you fail to relinquish control. You try taking care of each and every small thing and that is where things fail. It is ideal to do the opposite. Hire smart and delegate so that you don’t take the burden. Take it slow so that the burden is not overwhelming.
These are the three major mistakes that many founders made, leading to their downfall. Learn from them and you’ll minimize chances of failing as an entrepreneur.
Many startup founders worked hard to be successful but failed because of a few mistakes. It is important that you don’t follow suit and lead to failure. Learn that growing slowly and not aiming at raising too much money in one go will actually help you a lot. Keep it smart and know when to make the exit, as well.