When people start their business they make mistake and some make many mistakes. By making mistake they waste a lot of time doing work that is not aligned to their business or may be counter-productive. Here are a few points that can help startup to minimize their mistakes.
Doing what should and needs to be done. Startups require a lot of hard work and need extra time from the normal. If you do not enjoy what you are doing or things are unexciting you will lose all motivation for doing it in a short period of time.
Starting from a point you should know what solutions you are building that will solve the problem. Be crystal clear what you are doing. Your market size will depend upon the people who are facing some problems; more the number of people who are facing a specific problem, larger will be your market size.
Your startup should be a solution provider
Successful startups are those which are built around the solution to a problem. Do not create solutions for artificially created problems. Being a startup founder you should not have a narrow vision.
Most of the startup start with creating something but end up finding solutions for something else after few failures and trial and errors.
Do not plan to go ahead alone; always have a team or at least a co-founder who will share your joys, pain, expenses, problems, and workload.
It is usually seen that college friends are the best co-founders and the team size of 2 to 3 is the best. If the team size is too big chances of splitting is more. It can be your wife, sister and brother as a co-founder but see to it that all co-founders share the responsibility and within a certain time frame finish the task assigned to them.
Many startups try to ‘add’ big names to their company to garner publicity and create a false illusion as if it is something big.
Your core team should be build based on the character of the person and not skill sets. Skill sets can be acquired or learned but the character cannot be built. As you will be spending most of your time with your team, see to it that everyone enjoys and is joyful in the work they do.
Funding and finances
This is the important ingredient in your startup that is oxygen for any startup. Never chase angle investor or venture capitalist, let them chase you. Investors value to good startups and they may be attracted towards you if they see the value. It may take a bit of a long time, but you will have an upper hand while negotiating terms and conditions. They should not interfere too much in your line of working. Another thing is you can raise the good amount in the initial phase itself as raising funds is difficult, time and energy consuming. Building your business should be your main aim and not raising money.
As regarding finance, keep as clean as possible. You will have to adhere to government rules and regulations like filing quarterly, half-yearly and yearly returns etc. so as not to get into unnecessary trouble and waste your time and energy on it. You can hire services of friendly Chartered Accountant who will advise you from time to time and will not cost much.
You may run startup on a tight financial position and hence you will have to keep all your costs and expenses under control.
Almost all startups dream to become big, but it should not be at cost of your family time, health and relationships. In the initial period, you may have to work long hours but see to it that as you progress you devote your time judiciously and have a healthy work-life balance.