Don’t Make the Classic “Startup Mistakes” – Part 2

startup office

Last month, I started a list of the most common mistakes made by newly formed startups. Starting a business is absolutely a leap of faith, so it’s important that you do as much as you can to set yourself up for success. Let’s go through a few more ways to avoid missteps while trying to build a healthy, strong, viable business.

 

Be Realistic

This is applicable in every aspect of your business model. When your company is finally off of the ground, and it’s time to start taking on clients (or delivering goods), it’s vastly important to make sure that you can deliver on what you promise to your clients. Don’t take on a huge contract just because the money is good; make sure that you have the resources to follow through. The last thing that you want to do is have your first clients be disappointed; the news of bad business practices travels fast. Do everything that you can to ensure that your initial clients are beyond satisfied.

 

On that same note, be realistic about growth and spending. Younger generations are flying to opportunities that promise “startup culture”. There will not be a shortage of applicants looking for the opportunity to be a part of your new (potentially hugely profitable) company. It’s important to be mindful of your growth in terms of hiring. Also, try to avoiding stretching your budgets to offer “perks” like catered lunches and happy hours just to keep up with what everyone else is doing.

 

Find the Correct Investors

As startups begin to grow, it is not uncommon for cash reserves to start diminishing. As you start looking for your second round of funding, you’ll undoubtedly encounter several investors whose interest is piqued by what your startup has to offer. Before you make an agreement, and papers are signed, be sure that you and your investor(s) are on the same page. You want to avoid getting into partnerships where a common interest is mistaken for a common vision. Come up with agreements about expectations, and trust your gut. If you don’t think that an investor will align with your goals and expectations, it’s likely that they will not.

 

For sources & resources, go to these sites: American Express & Forbes & Entrepreneur

 

Don’t Make the Classic “Startup Mistakes” – Part 1

startup mess

It takes a great deal of courage to take the plunge and open your own business. The startup lifestyle is a hugely rewarding one, and can be extremely lucrative if it is carried out correctly. But it’s also one of long hours, very hard work, and a lot of faith. As an entrepreneur and owner of a startup, the pressure is on you to make good decisions, as your livelihood (and the livelihood of others) quite literally depends on it.

The one thing that you want to do is avoid making the same detrimental mistakes that other startups have made in the past. The following pieces of advice will help you avoid making damaging mistakes early on in your startup’s life.

 

Make Sure Your Business Isn’t Too Niche

It is true that a niche project can be the ticket to a wildly successful business. The general thought process is that niche industries usually mean fewer competitors and a higher probability of making it big. But, the reality is that a truly good business model will always have competition. The true test is whether your product and business model will be strong enough to beat out the competition. Avoid making the mistake of starting a business with a niche so small that there is little to no possibility of long term growth.

 

Time Your Product (Or Service) Release Properly

Jonathan Wegener, founder of Timehop was quoted saying “”The biggest mistake I see is companies waiting too long to release the product.” This is absolutely true. Many founders and their founding employees get caught up in trying to release the perfect version of their product or service, and that can be hugely detrimental for their timeline. It’s important to take a step back and determine if the Minimum Viable Product has been created. If so, launch! All of the extra bells and whistles can be added on as your business moves forward; they aren’t important for your initial launch. Avoid wasting time and resources upfront; use your initial product to gain resources, a following, and investors.

 

Be sure to check back next month to see more tips to avoid the most common startup mistakes.

 


 
To see the resources for this article, see here and here.

 

Using Social Media to Promote Your Startup

startup social media

Social Media isn’t going anywhere. Many businesses are scrambling to try to figure out how to leverage the constant influx of new social media platforms to their advantage. This is proving to be easier for larger businesses and firms that have the marketing budget to research how social media can be used most effectively. Smaller companies and startups with smaller budgets generally do not have that luxury and are forced to figure out the world of effective social media on their own. There are a few things that startups can do, to make the most out of their social media presence:

 

Create A Social Media Marketing Plan

Many startups make the mistake of starting social media platforms for their company without a strategic plan. It’s important to establish a strategy so that you have actual goals to focus on and benchmarks to work towards.

  • Determine what your goals are. Is it building awareness for your brand? Distributing content for your brand? Generating Leads for your business? A combination of the three? Make sure that you establish what you want to accomplish.
  • Determine who target audience will be. What is their primary means of communication online? How do you plan to interact with them?
  • Determine who will run your accounts. Make sure that whomever has access and posting privileges is aware of your objectives and procedures. The last thing that your company wants is to have a sloppy online presence.

 

Determine The Best Time to be Online

This is directly tied into the determination of the target audience. It’s important for startups to research when their customers are typically online. Make sure that time zones are taken into consideration when making posts, and do research on the specific social media platforms that are being used. For example: People may use twitter and facebook at different times and for different reasons. Research and metrics are a startup’s best friend when determining when to post.

 

Listen to Your Audience

Startups can really use social media as a platform to get direct feedback from their users & customers. Don’t just flood your platforms with information. Ask questions and ask for feedback. Focus on gathering replies and even criticism. If used properly, social media platforms can be mini online focus groups for your company.

 

 

For more tips on getting the most out of social media platforms, see these resources:

Inc. | Startup Donut | America’s Small Biz Dev Center