The idea of being your own boss is undoubtedly appealing to all. It is common for people to go for startups and business advice while they are young and smart, like the brilliant minds behind Facebook, Instagram, Pinterest and Dropbox who became successful CEOs well before they reached the age of thirty. But as the statistics say, 75% of all startups are doomed to fail because they overlook certain important factors which define the destiny of their entrepreneurial venture.
To the relief of entrepreneurs, these factors have been identified. It is important to keep a look out for these shortfalls as they can prove to be the silent killers of your startups and business failures. If you are not sure as to how to go about making important decisions for your business idea, seeking startups and business advice from successful entrepreneurs could help you immensely.
Living in the Fictional World
Most entrepreneurs start off with amazing innovative ideas which have no value in the eyes of its potential users. It is good to think out of the box but it is equally imperative to keep it real and worthwhile. People are least likely to part from their hard earned finances just to have something in a slightly different shape, color or size unless it solves a major problem. So you need to have a vision and purpose centered around your potential customers’ needs and not on your own thoughts or capabilities. Check this article from NBC news about the 10 greatest entrepreneurs of all times.
Playing Solo or With Too Many
It is difficult to take on the challenges of a business startup alone, but this does not necessarily mean you need a herd to get you started. It may seem to be a very good idea to start off with a group of friends partnering in the venture. This, unfortunately, ends up in single ownership due to clashes, ego wars, misaligned business goals and multiple decision making bodies. The diverse needs of your business will require different people to manage it. This does not mean you need to make them your co-founders – the employer-employee relationship works much better.
Staying Oblivious
No one likes to be criticized. However, as a startup and business advice follower, you need to look out for critics and ideas in order to improve your products and services. Simply closing your eyes and ears to the environment will not make it any better or favorable. The worst thing you can do is try to sell a failed product, fool your investors with unreal promises, run a doomed business, and still remain oblivious to it all.
Financial Mismanagement
However, the idea generator might feel that he bears important knowledge about his business, short-sightedness in business and lack of proper startup and business advice could lead even an amazing idea to fail. Start-up and business advice becomes all the more significant in financial matters. Considering the tax benefits of your company you should avoid setting up your company to high tax rate countries. You may choose instead, other offshore destinations, with no sales tax and other financial benefits. Here is a nice article explaining the tax benefits and advantages to setup your company in Delaware.
You need to know when and where it is viable to invest your financial resources in order to support your new venture. Being able to generate a lot of initial investment does not mean you have to be spendthrift. While socializing is important, it is equally significant to remain sober and actually deliver what you promise. Know when you need to draw the line.
Marketing Mismanagement
You definitely do not want to be remembered as a “popular failure of this year”. So before you get carried away by your obsession with hype, build a store of favorable news about you. Hitting the press with huge and farfetched promises is almost a sure concoction of under-delivering your customers’ expectations.
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