5 Common Startup Pitfalls you Need to Avoid 2022
Developing, launching, and managing a startup is like an extreme sport. It is incredibly risky, but it can lead to satisfying results when you do it right. However, If you are not careful, you might fall into the common startup pitfalls and traps. If you want to build a startup, here are common startup pitfalls you need to avoid.
Common Startup Pitfalls
1. Seeking Too Many Investors
Sometimes, you are too focused on gaining funding from venture capital, angel investors, or crowdfunding when building a startup. However, there are some downfalls to doing this. Seeking and managing relationships with investors took a lot of time and energy. In the process of seeking investors, you might sacrifice other essential foundations such as product development, market creation, and marketing strategy.
Overly focusing on acquiring many investors is never a good idea for your new startup. Too many investors mean sacrificing a huge portion of the equity in your startup. This means your startup will have less portion of the generated profit. This also means that you will significantly reduce your decision-making power to the shareholders. Not all investors are sophisticated and experienced in managing a startup; giving up too much power to them will increase the risk of bad decision-making for your startup.
2. No Documented Workflows
The following common pitfall in running a startup is the absence of a documented process. Nowadays, employees come and go at a rapid rate. Your team will quickly transition to new people. In order to make your business sustainable, you need to establish a routine and blueprint of how to get things done. Figuring out everything will take longer, especially for new employees with a lack of experience. The primary purpose of the documented process is to maintain, manage, and transfer knowledge quicker. The documented process will help make the process faster and accelerate your startup’s growth.
3. Doing everything by Yourself
Startup founders tend to handle everything single-handedly. You can not be an expert in all fields. Doing this will only overwhelm you with the number of workloads. Consider delegating job desks and hiring specialized employees to handle specific tasks. There are also other avenues to find an answer to your problem, such as networking opportunities and hiring freelancers.
4. Scale Up Too Fast
Another common startup pitfall is scaling up too fast. Attempting to scale up too quickly can be a boomerang for your startup. You need time to develop before launching more products and consider before hiring more employees. Success is not achieved in a short time. Scaling up recklessly will only burn more money. You need to prioritize quality over quantity.
5. Jumping in Without Guidance of Mentors
Being a startup founder is not an easy task. It is not enough to come up with innovative ideas, you need to execute them as well. Many startups fail because they make the wrong decision in the early development or even in the mid-way. Thus, you need much guidance from experienced mentors in making decisions for your business. This guidance can come anywhere, from an industry leader, consultant, or startup incubator/accelerator.
Gear Up: More than just a Startup Incubator
Startup incubators are a great platform to accelerate your startup. But our services are different from an ordinary startup incubator. Gear Up is a startup brainstorming partner in Indonesia that provides one-on-one and catered support for the chosen startups in our network. How are we different from other startup incubators?
- Startup incubators provide default material for all clients. Gear Up provides customized materials that are specifically tailored for each client’s needs.
- Startup incubators use a one-fits-all classes system. Gear Up provides dedicated 1-on-1 attention/partnership.
- Startup incubators have generalized goals for their clients. Gear up, set tangible KPIs, and focus on real-time goals for our clients.
Are you interested in building a startup? Apply here to begin your startup journey.