7 Mistakes First Time Founders Often Make

Starting a new business is wonderful and exhilarating but it is also difficult and comes with a lot of challenges. There are so many decisions that need to be made and things to consider. The pressure can be stressful and cause you to make poor choices that will harm your chances of success, or at the very least set you back. We've compiled a list of the biggest mistakes start-up founders make so that you can avoid them when starting your business.  While there is no guaranteed plan for startup success, there are several common and risky mistakes that many new business owners make that can have a detrimental influence on their businesses.  Here are some of the mistakes you need can avoid:

1. Don't be afraid to fail  

Fear of failure is a perfectly normal reaction to starting a business. While fear cannot be removed, you must learn how to overcome, manage, or avoid it to navigate the rough waters of entrepreneurship. Think carefully about the kind of words you are speaking and speak life over your business and psych yourself up.

2. Skipping the planning phase 

If you don't have a sound strategy for your business that incorporates your business idea, research and market potential, then you will have no direction.  A business, finance and marketing plan are the most crucial plans to consider.

3. Having too many founders or going at it alone 

No one builds a business on their own. You will need some help along the way. Even if you don't have workers, you'll need to have some form of assistance to help you manage different aspects on your business. Making the mistake of believing that you can do it all on your own can be dangerous. It is almost impossible to manage every aspect of your business while attempting to establish a profitable company. You will be too overwhelmed to tackle various tasks on your own. Or you will end up only focusing on one sector of the business while the rest suffer. It is also very likely that you won't be able to afford workers when you first start out, look for a partner who can help you run your business. This will help you divide your responsibilities amongst yourselves so that you are not too overwhelmed trying to accomplish everything yourself.

Another mistake to avoid is having too many founders. If there are too many people making decisions, then there are bound to be disagreements and unnecessary delays. It is advisable to avoid this by not having more than two founders.

4. Not understanding your market and target audience  

Take time to understand the target market or the audiences that you are building for. Once your target audience is defined then it will be easier to determine where and how to market your business.

Pro tip: Don't build a product without a market.

5. Avoiding new technology 

We live in a digital age and technology plays a huge role in our daily lives. Technology is very beneficial and can assist in managing business certain business functions and saving money. New technology might be frightening but refusing to adapt to technological changes can affect your organisation negatively in the short and long run.

6. Launching too quickly

Don't launch your business while it is not ready, rather wait until everything is done so that there are no cracks. Once you have launched to the public and you start getting clients then it looks unprofessional when the cracks start showing and you don't know how recover from that.

7. Overpromising or underdelivering 

Don't overextend yourself in the name of making a profit. Telling a potential client that you can take on their project when you know you can't is damaging. It is better to let them know that you are unavailable and provide them with a more convenient time, this will also give the impression that you are in great demand and that's always a good thing.

Propella operates as an incubator for start-ups, and we can assist you to take on the obstacles that you may face as an entrepreneur. Click here to read more about what we offer.

We all make mistakes; the goal is to be aware of them and to make wise and well-informed business decisions on a regular basis. If you can do that and stay resilient when you make a mistake, then you will be on your way to success.