Here are some tips for startup launch, what to look out for and how to avoid possible mistakes. Many of you are thinking about starting your own business because you think you have a good idea, but only an idea is not enough to drive a successful business. Every beginning is difficult and if you are without job, unnecessary mistakes becomes even more difficult. For this reason we have decided to write an article about the most common startup mistakes that can be avoided.
Sometimes testing a prototype is not easy task, but testing is a prerequisite for the start of each project, production or work. If it is a web solution of some problem, testing can be done relatively quickly and easily. Just make Landing-page with the Signup form for the service you want to offer, put a few ads on Google AdWords, and see how people react. One of the mistakes that young entrepreneurs are doing is to test the idea on acquaintances or family that is completely the wrong approach. Do not get us wrong, they should also be asked for the opinion but the most important is to examine the group of people that will actually use the product.
Although you might think that you do not have competition it is very likely that you do not think in the right way. You may choose some of the areas where there is no competition but that is a very small chance, try to consider all alternative solutions to the problem that your idea could solve. Many people who has a startup will say you that the research of competition is one of the most important steps before you start to develop your own ideas because the competition is your greatest source of information. Proper analysis can find out the strengths and weaknesses of competitors and identify what it is that you can do better.
Talk with prospective clients
In the early stages of the project when the project is only in your head meet with prospective clients, ask them for feedback because this will ultimately depend on your success. If you think that your idea is a good enough to not speak to future users, you will likely develop a product or service that no one needs.
Business model is not applicable to a wide market
There are many ways to reach customers but not all methods are applicable at all stages of the project. Some business models are based on walking door to door looking for the owners but this model requires a lot of people and a lot of time which means that the long term is not sustainable. If your business expands, you must have prepared a more effective model to achieve the goal, where each invested coin responds several times higher realized value.
You must practice your presentation
The old saying goes: “Practice makes perfect”. Confident or not, it does not matter, do not deceive yourself that you will give a good presentation if you are not prepared. Investors are experienced people and will quickly find the holes in your story.
A few smart tips:
- Practice presentation with a good friend or co-worker
- Present in front of some unknown eg. Friends of your friends with whom you have not previously had the opportunity to meet
- Be honest, every story has flaws.
- Assume questions that will be asked and prepare answers for them.
Why is the story and the way you tell the story important? The story is not only important for attracting investors and collecting money, a good story will allow you to attract the best employees and to focus the organization towards certain goals. How to recognize a bad story? The first sign that the story is bad are people who do not understand it. You can pretend to be smart and assume that people do not understand because they do not have the knowledge or you can clearly tell the story.Y
You have not acquainted with the work of investor prior to arrival at the meeting
The investor is certainly check you, but did you do the same? Do your homework and find as much information as possible about the investor with whom you have a chance to talk, get to know his business, see the company’s website, Linkedin profile, newsletter… Any information that you can learn to use in a later interview that will facilitate a lot of things. If you come unprepared to meet investor, he could get the impression that you are not based in the performance of your duties and that it does not make sense to cooperate with you.
You’re making up and don’t know the answer
The talk for first time with investitor, you are under stress and then it happens that he ask you a question you do not know the answer. What to do? Instinct is to try to find a solution or make up something until you think of something better, but sometimes the best answer is “I don’t know”. Of course it is not enough to say “I don’t know” and shrug your shoulders, it is necessary to make clear to investors how you will get the answers to this question and which resources you will use. Startup projects are experiments, if you have a response to the experiment, then the experiment is not required. The basic prerequisite for achieving any kind of cooperation is honesty and if you are honest you will get confidence.
Looking for confirmation rather than opposite viewpoints
Smart people say that there is always a place where you can find your greatest flaw. It should not be too confident, or too self-critical but should be ready to accept the facts that denies you.
Choosing advisers that are easily to reach and not those that are relevant to your business.
If you eg. Student at faculties simplest is to find a mentor in college and ask him for advice but this is not the best solution. There are exceptions but most do not care what you do. You need a professional and tactical support for business startup launch so it is better to find a best man who will be able to provide all necessary assistance and who would be interested in your idea.
You started a business and create the conditions where you have to hire additional people, the first thing that will come to your mind is to hire a friend to fill the vacancy, but it is much easier to employ friends, but to fire them – keep that in mind. In the early stages of the company you should choose carefully each employee. Lowering the criteria leading to the employment of non-performing people who are later difficult to replace.
Fundraising is a goal and not a means
The job each entrepreneur is to ensure that there is always money in the account, but the collection of capital is not the most important part of business. The raising of funds is just a small part of the work that the entrepreneur needs to do to build a successful company. If all else is done properly, fundraising will be easy. Money of investors is only the means by which you come to the ultimate goal.
As young entrepreneur and enthusiast with no experience with startup launch you will confront with a lot of problems that will not count on, problems that you will have to solve through. Some problems you will resolve painlessly and some times and you will make a mistake. Mistakes should be seen as a lesson and you should move on because we’re all human, and we learn on our mistakes. Not all mistakes are necessary and some can be avoided but it takes a lot of research, information, knowledge, experience and luck because you will never anticipate all the problems that you encounter.
Below you can check infographic with 22 tips to Successful Startup Launch: