For advice about starting a business from the expert faculty of Financial Poise, check out this webinar.
According to a 2015 Forbes.com article, nine out of every 10 startups fail. That’s the bleak truth. While this statistic may discourage some entrepreneurs, it should also encourage them to learn how to avoid certain mistakes before making them. Here are five mistakes that entrepreneurs should avoid when starting their own company. The more you know about them, the less of a chance you make them:
Here are five mistakes that entrepreneurs should avoid when starting their own company. The more you know about them, the less of a chance you make them:
Believing you can succeed is all well and good, but you need to actually crunch the numbers to figure out if you’ll succeed. Companies that ignore data analytics are losing out on market trends and are not accurately assessing risks, which can make or break a company.
Do you have potential revenue streams beyond the customer’s initial purchase of a product? If the answer is no, then you are selling a product but not running a business. “A product solves an individual need,” Eric Holtzclaw, Atlanta-based entrepreneur, says, “but a real business has something customers will come back for again and again.”
According to a 2016 Entrepreneur.com article, it is imperative that you get proper rest and nutrition and shore up relationships before starting your company. “You have to be rigorous about making sure you’re ready and that every area of your life is in check,” says Tarek Kamil, founder and CEO of the communications platform Cerkl.
Bernd Schoner, author of The Tech Entrepreneur’s Survival Guide, says that expertise is a skill that startups can’t do without. Find an expert whose job is to recognize exactly what you need to do, like drafting term sheets.
According to a 2011 Startup Genome report, 74 percent of high-growth internet startups fail because they scaled too fast, too soon. “People raise money, they think they’re flush with cash and then spend it on the wrong things. But by the time they realize spending isn’t getting them anywhere, it’s often too late,” Mucker Capital CEO Erik Rannala says.
For great advice on starting a business, take a look at this webinar with our expert faculty.
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Perhaps the youngest person to ever write for Financial Poise, Matt Niksa was an editorial intern with the company during summer 2016. Prior to that, he was a contributing writer for AOL and Medium. Subsequent to his time with Financial Poise, Matt was a correspondent with the Palo Alto Daily Post.
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