Many new entrepreneurs of startup tech companies have suffered from these five deadly mistakes—don’t become one of them!
As an entrepreneur, new or experienced, impulsive or plan-focused, you’re going to make mistakes. It’s a constant fact of business ownership no matter who you are or what kind of company you run. But not all mistakes are equal. There are small, easily fixable mistakes that happen on a near-daily basis, such as miscalculating a projection, but then there are large, organization-level mistakes that often go unnoticed because they’re so ingrained in the fabric of the business.
These types of mistakes are the hardest to spot from the inside, and are also the most destructive. They often appear during the planning process, imperceptible until the business actually gets running. You may notice your numbers slipping over the course of a few months, wondering what’s going wrong, before you notice there’s a fundamental mistake responsible for the fluctuation. Some business owners never realize their mistakes, and end up losing their business over it.
Fortunately, if you catch these mistakes early enough, you can fix them before they damage your business beyond repair:
1.      Failing to market. Marketing is one of the first budgetary lines to get cut in a business because it is viewed as unnecessary compared to other departments. But if you spend little to no money on marketing, you could be ruining your chances at achieving growth. Focus on ROI, your return on investment, rather than how much you’re putting in.
2.      Overestimating your growth. It’s easy to become overly optimistic when you’re excited about your idea, but keep your financial projections conservative. There are too many unknown factors to consider, and if you overestimate your growth, your inflated budget may not be able to handle the discrepancy.
3.      Improperly balancing your employees. It’s tough to determine exactly how many people you need and what roles they will play, but it’s vitally important. Too many people and you’ll be hemorrhaging money, too few and you’ll be desperate for help.
4.      Not testing enough. Testing is the most important element of launching a successful product. Test before you develop, while you develop, and after you develop to make sure everything is in order.
5.      Failing to adapt. Markets change. Competitive landscapes change. Technologies change. Failing to adapt to those changes is the worst mistake you can make as an entrepreneur.
There’s always room to adjust your business. Don’t be afraid to make major changes if it means restructuring your company for the better.
