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A mistake made by entrepreneurs
Every entrepreneur wants to achieve success in his endeavor of starting business and building it but very few make it to the pinnacle.
Let us analyze a few common mistakes made by entrepreneurs, which leads to failure of startups.
Let’s analyze the common mistakes made stage wise, the first stage being idea stage. The entrepreneur figures out an idea on which he wants to work and he feels his idea can solve a problem and it can grow big. The major mistakes made at this stage are thinking if I tell my idea to others they will copy it and I will lose the idea advantage in this process. What happens is you do not want to take views or thoughts of the other persons, be it either investor or participating in a contest to pitch ideas.
You need to remember that by sharing ideas you get to know the reality from the other perspective, as you will be thinking your idea is the biggest next thing. When you put it across in forums you will get to hear things which you had not considered.
Then let’s analyze the implementation stage. The mistakes made by entrepreneurs are trying to implement by saying you help me build my website I will give you equity. These things will ensure that you will never get to the launch stage as why would someone do work for you when you are planning to give equity when the company itself has no value.
Trying to hire people by saying no salary only equity or asking for cheap rates or low rates for building app and going ahead just because a vendor agrees to charge you cheapest at this time you need to figure out the deliverable also as its not only about money, yes agreed that you have little funds so you want to maximize but in this process you are getting a mobile app which is low on quality and hence will become good for failures.
The next stage where mistakes are common is in when you have launched the service or the product here major mistakes by entrepreneurs are going about raising funds where in they feel that my company valuation is X and I will give only 3% equity for raising 10 crores this will ensure that investor not looking in it as why would someone invest such amount for such low equity. Having absurd valuation will ensure that funds are not raised and hence automatically the extinction happens.
The other component at this stage is trying to build 100% of the product rather than launching the product and building it as per the changes that are required, you need to understand no one is perfect, in the process of building 100% product you consume to much of time and by this time you will have got a competitor.