5 mistakes that most start-ups make
Learn from the mistakes of others
It is alright to make mistakes and learn from them. But it is always better to learn from other peoples’ mistakes. And when it comes to starting your own business, it is still better to recognize the mistakes that most of the businessmen make; after all it’s the question of your business.
Here we list 5 starts-up mistakes that almost everybody makes:
Undeveloped Startup Idea - No matter how good your business idea is, if you fail to develop it, success will be far from you. “Document the idea well. That is the road map that you have to follow while you are doing business and that is the road that will lead you to success,” says Nandini Vaidyanathan a mentor for start-ups.
Ignoring legal obligations - Most entrepreneurs start small and so do not care about even the basic legal aspects of a business like getting registered. Every entrepreneur must understand and secure all necessary licenses and permits and also pay the required taxes.
Lack of financial management – “Start-ups usually mixe their personal and business finances. This does not cause immediate trouble but later in the business it becomes difficult to get tax benefits and avail finances from venture capitalists and other sources,” says Kartik Varma, Co-Founder, iTrust who is a financial adviser to numerous entrepreneurs and is also an entrepreneur himself.
Lack of enough liquid assets - “One should have enough liquid assets to sustain for at least one year,” says Varma. People usually start their business without realizing that for quiet sometime it might not bring in money and so they will have to keep putting in money to keep it going.
Unplanned web presence - The internet is how people come to know of products and services these days. “If you aren't doing at least some part of your business over the Web, you're missing out on a huge opportunity. Today, the Web forms either an integral part of the business or a fabulous means to extend it,” says an executive from the Blue Apple Technologies Pvt. Ltd.
Lack of perseverance - Start-ups loose patience when their efforts do not yield the desired results immediately. Sanjeev Bikhchandani, co-founder and CEO of naukri.com says, “Everybody makes their share of mistakes. Sometimes you are right sometimes you are wrong. But what one should not loose is patience and perseverance. They are the key to success.”
Please add your comment
RajMay 13, 2015 at 8:57 pm
An old article, but still quite relevant points for budding entrepreneurs.
AnandAugust 23, 2010 at 10:31 pm
Very basic but still very important points to be considered by beginners.
PraveenMarch 28, 2010 at 9:01 pm
These are a very well thought of points coming from experience. very useful.Helps do an introspection right away.Thanks for the insight provided.
RashmiMarch 19, 2010 at 12:46 am
forgot the ratings:-)
RashmiMarch 19, 2010 at 12:44 am
Thanks! for these valuable points. The best start is to learn from the past mistakes.