After polling our Young Entrepreneur readers, here is our list of the top 20 mistakes that startups make when creating a new business. I’ve also included a few of the comments that were left for some of the top points.
#1: Not Having a Clear Plan or Vision
“Having started a dozen businesses over the past couple decades, the one that motivated me was vision. If you cannot have a vision of where you want to be in ten years, twenty, or however many, then you will not succeed. This comes along with a basic business plan, but in that plan, don’t just think now, but think as far down the road as possible.”
“The biggest mistake people make is not looking far enough ahead in your market. So many businesses are losing ground to new technologies as example, so think ahead on how to better utilize these new technologies. With the current recession, how many planned for it? Every business will go through cycles of growth and market demize, just as we are all now seeing, so again, think ahead, have vision beyond today is one of the keys to success.”
“I think it is because of lack of planning and focus on what you are doing.”
#2: Surrounding Yourself With People Who Don’t Believe In Your Idea
“Another mistake would be surrounding yourselves with people (whether by accident or because they’re family, etc) who don’t believe in your idea. You need to be around positive feedback all the time.”
“Yeah, I totally believe surrounding yourself in people who dont believe you will succeed is bad. Especially when they bag out your idea, without actually giving their opinion. I have alot of people who with my current start up like that, so I choose not to speak with them. It makes you more determined I guess too.”
“Letting the negativity of those around you bring you down and “steal your dream”.”
“Also, (the) people that surround you affect your decision, so be wise and careful.”
#3: Not Having Enough Money
“I think this is big for those businesses that have the incentive to only reap the benefits and not focus on the longevity of your venture. Taking out $10k now may prevent making $100k in a few months. Mindsets should not be “Yeah I own a buiness I make this much” but rather “Yeah I own a business, we invested in XYZ and were able to afford this new service/expand here/etc” Also, too many people plan on the basic expenses of starting up, and don’t think about the increased expense that come with a more successful, growing, developing business.”
“In my personal experiences, I didnt look enough into the current market for my idea just see what is already out there, and underestimating the amount of capital needed to start the business.”
#4: Doing It All Alone
“Lots of CEO personalities think they have to be the answer to all problems, and this is not the case. Their pride and mindset of “I must live up to this role” is skewed and they may fail to tap the most important and valuable resources that surround them in their management team and affiliates.”
“Trying to do it all by yourself and not asking for help is also one of the reason why people find it hard to start a business. I mean, you can always have skilled people working for you for costs that is right on the budget. You just have to have the proper resources and people and your business will be up and running in no time.”
#5: Not Seeking Mentors
“I think having a mentor – a much more experienced entrepreneur that can give you some valuable advice is so IMPORTANT…especially when you are a young and overly ambitious… and with so many challenges to meet on the way to success.”
“Having a mentor is extremely important since my mentor advised me that creating a successful business will take a lot of time, effort, patience, dedication, and a clear plan and vision.”
#6: Losing Momentum
“Being satisfied and content with functioning can lead to “big headedness” and false hope that it will always be this way. You need to constantly improve your product/service, research your around-the-clock changing market and competition, and promote innovation and forward progress amongst your management and team.”
#7: Not Marketing Your Business / Expecting People To Come To You
“A few mistakes that I personally made was the lack of focus on a targeted marketing plan, and the miscalculation on future expected growth.”
#8: Not Looking At Your Competition
“I think it is a big mistake to start a business without really understand the market.”
#9: Being Overly Enthusiastic and Not Having Realistic Goals
“A few mistakes that I personally made was the lack of focus on a targeted marketing plan, and the miscalculation on future expected growth.”
#10: Not Thinking Survival
“Too many people think that so long as everything is done “textbook” and they have the proper set up, and plans down on paper, that they will succeed. Also, many people have the idea that it is easy to keep it up after they get an initial consumer base. Not true. small businesses are small fish in a big pond, constantly competing against emerging and growing bigger competitors that have the backing, both monetarily and resourcefully, to push them out of the picture.”
#11: Doing It Just For The Money
“If you want guaranteed income, go out and apply for a job, do your day to day task, and collect the check. Many times people try and look for the most lucrative, profitable idea that they can score an easy amount of money in so they can “live the dream”. A true Entrepreneur lives the dream by constantly growing and changing to address their market and benefit those who use their product/service. You need to cover costs and have the right to strive for wealth, sure, but that will NEVER come unless you sacrifice first and realize that the longevity and future potential for your business to weather the conditions presented from changing needs and business priorities, is first and foremost, or else you have simply wasted your time and effort to have your 15min and now are snuffed out thereafter.”
The remaining 9 common startup mistakes are:
- Not hiring right away
- Getting to year 1, past year 2
- Not getting involved in the community
- Working in your business instead of on it
- Going wide instead of deep into a niche
- Not using email marketing
- Having a lack of ambition
- Failing to network with others
- Growing too quickly
I hope you enjoyed our list and can use some of the advice to make sure you don’t fall into the same traps that others have. If you can learn from those who have gone before you then your chances of making it big will increase dramatically!
Stay tuned to the blog for our upcoming polls!
