Six pitfalls that startups should avoid

There are hacks to everything in life, and business is no exception. For example, there are many business recommendations that can cut an entrepreneur’s learning curve and save them much time, money and effort. Here are six ways you can reap the benefits of learning from someone else’s costly mistake.

Scaling up too early too soon
There are many entrepreneurs who believe that the best impact is one of size. No sooner have they set up their pilot project, they want to replicate it elsewhere for a wider reach and a bigger impact. It’s a good strategy on the face of it, if you have the funds, but quite a bad one if the long-term effects on credit, equity, cash, talent and supply side vendors are not fully realised.

Saying ‘no’ to suggestions
Everybody can contribute to your business idea. From a clerk to a roadside vendor,  an entrepreneur should consider every suggestion and recommendation that come their way. Crucially, they should consider the advise from the more experienced entrepreneurs in addition to experts in law, company strategy, financial planning and accountancy. Similarly, being part of a startup or entrepreneurs group, or having a business coach, will work wonders too.

Bad at people management
Being professional is the basic minimum that any employee, business partner and client expects from you. However, this requires one key capability: people management. There are all sorts of individuals that you will need to deal with. How you take their bouquets and brickbats is crucial in the survival of your firm. Just giving a great salary will not do. Providing an amicable working environment and having a long and cherished customer and client relationship is key to survival of any business enterprise.

Refusing to accept change
There are many inherited businesses that are still employing old-world techniques. While all of them are not bad, like people management skills, some require a complete overhaul with new-age automation tools like data analytics or having an online strategy. Change is constant and refusing to adapt to it can result in disastrous consequences for any startup.

Ignoring the red flags
Entrepreneurs are human too and therefore, they tend to overlook their weaknesses. This can be a crucial mistake as their entire business can suffer because of it. Identifying their weak points is crucial for the founders, so they can hire somebody else who can plug the leak. Hiring domain specialists is crucial for the success of any startup. And here is where PeopleOn can assist you as an HR business partner. For more on us, visit Who We Are and What We Do.

And finally…
Most businesses fail because they are not well-rounded. For example, the idea could be good but the execution is bad and vice versa. Therefore, an entrepreneur should first conduct some amount of research on the area of business they are planning to enter. On many occasions, founders have no clue about their target customer. When such confusion reigns supreme in startups, the staff gets disillusioned, leading to low morale, falling productivity and higher attrition.