Engaging in any business startup can be risky, and even more so when you are attempting to initiate a startup in the technology sector. Available risks cross both B2C and B2B vectors, and while the risk percentage can fluctuate between said vectors, it clearly illustrates the wide array of risks present for your technology startup. When these risks are combined with potential missteps by the founders of the technology startup, a perfect storm can be created that only terminates with the complete failure of the endeavor.
Mistakes Do Happen
Mistakes in any endeavor are bound to happen, but there are several key mistakes that are most certainly responsible for a significant portion of startup failures. Many of these founder mistakes apply across all startups in any location.
The top 10 mistakes startup founders inadvertently make are:
- Failure To Partner With the Right Co-founders: Failure to connect with trustworthy individuals who have the relevant skill set.
- Failure To Understand Current Trends: Inability to translate future market demands into marketable or operational results.
- Failure To Have Clear Objectives: Not having set goals and knowing how and when they are reached.
- Failure To Account For External, Non-Related Pressures: For example, working with partners who have other business activities and inability to fully contribute.
- Failure To Identify The Customer: Not understanding the targeted consumer and their needs.
- Failure To Implement The Appropriate Marketing Strategy: Not setting marketing goals and benchmarks to determine effectiveness.
- Failure To Establish a Clear Founders Agreement: Not laying out the roles and responsibilities between founders at the outset.
- Outsourcing Core Element: If your team relays on outsourcing for core elements of the product, your chances of raising funding decreases.
- Attempting To Shorten Incubation Limitations: Trying to grow the business too quickly.
- Unwillingness to Finance Boot Strapping Independently: Not willing to show ‘skin in the game’ may raise difficulty in initial fund raising.
Indeed, there are other mistakes that startup founders can make that will contribute to the decline of startups, and while the above might seem obvious, these are among the most common.
It is incumbent on you to endeavor to avoid these mistakes. One of the best ways to make sure you are avoiding the pitfalls is to work with and engage with qualified professionals who understand what is at stake and how to provide solutions to the problems outlined above.