First years are for mistakes. And as a startup, you are going to make many mistakes. At least you don’t have to make the following ones.
Going after money in the first year
First years are the golden years when a startup toils and learns its lessons. First years are for investment and reinvestment. First years are to build your brand into this beautiful entity that people fall in love with and come back again and again. First years are the foundations on which your future business empire is supposed to stand on. First years are not for making money. They are about giving all you have! When startups fall into the pit of planning and strategizing their business to gain maximum profits, the whole thing is inevitable to take a tumble more often than not. When you focus on money you lose focus on your product or service. And that is like writing a suicide note.
Scaling-up like there’s no tomorrow
I have seen start up companies making a dent in the marketplace and then, out of overconfidence, scaling up like there is no tomorrow. It’s alright to dream to become the next Ambanis, but Reliance did not become Reliance one year. There is something about slow progress that seems to attract permanent success. Take every business decision seriously, like it’s a matter of life and death. You have to be that careful in the first few years. Even in this fast paced world, behaving like a madman can cost you dearly.
Yari-dosti & Trust
Young blood is easily excitable. Young entrepreneurs are driven by emotion more than anything. And under this emotional influence that they sometimes form startups solely on the basis of friendship or mutual trust. But honeymoons don’t last forever. When problems surface, it’s convenient for either of the parties to bail out or steal it all, since there were no legalities considered.
Burning holes in customer’s pockets
When you know you have a valuable service or a product, it’s time to win customers’ love rather than trying to make maximum profits. With a loyal customer base you will have a lifetime to earn profits.
Burning holes in their own pockets
On the contrary, if you are trying to sell too cheap (in order to destroy competition) you are digging your own grave. Say your prayers.
Forgetting Day One
This applies to the startups who enjoy beginner’s luck and forget their roots and belief and reasons they started their outfit in the first place. That, generally, is the start of their downfall.
Now that you have read about the mistakes, take a minute to know Seven Habits to Build a Profitable Small Business
The author of this article (Jagjit Singh Makkar) is a brand designer. Explore his logo design portfolio here.