12 Common Mistakes that Startups Often Make in Their First Year

Most of times, people regard establishing startup as a shortcut to reach success and glory and miss the real picture that it could be way too risky and problematic that we shouldn’t take it lightly. In contrast to being successful, all our savings might be wasted just like that if we’re not careful. Below are 12 common mistakes that people make when starting a startup, as being presented by Inc.

1. Pursuing publicity way too soon

Big and intense publicity may benefit you and your startup, as it would provide free promotion and attract more users and potential investors. However, if it’s done too premature, you’ll only ruin your own business.

Before pursuing publicity, answer these: “Why do you need publicity?”, “Are you really ready to handle the press?”, or “What do you want to achieve from the publicity?”. Do it, and you’ll be free from regrets.

2. Eyeing for huge investments from the beginning

Yes, running a startup through a bootstrap mode would be super hard and scary, but it would help us managing our capital much wiser. Most of startups tend to go and find investors rather than relying on their own capital, even in the very beginning of their business. This may backfire them, as having a large amount of money would, usually, lead them to be careless in using the money, thus resulting on least expected valuation in the future.

Establish your own business model, make sure that it flawlessly works, then you can start talking about finding investors.

3. Being a single fighter

No matter how excellent and skillful you are, you need someone with whom you can share all the pressures and challenges, whether a co-founder or advisor. Being a single fighter isn’t a wise decision to make.

4. Having too many co-founders

Having many good and caring friends sounds fantastic, but that doesn’t mean that you can start doing businesses along with them. The more people involved in your project, the smaller your authority will be, hence taking decisions would be even more complicated.

There are countless evidences to this, some even majestic, like Facebook, Quora, and Foursquare. Start your startup with one trustworthy partner, don’t involve too many.

5. Going out too often

There are tons of seminars, events, and meetups out there, potential places for establishing your network. But notice this, leaving the office way too often will leave negative mark on you among your own employees and the investors, so pay attention to this when you manage the calendar.

6.Forcing a failed business model to work out

You quit your job and decide to be an entrepreneur, backed up with brilliant concepts and ideas that you’ve developed. Okay, then what? You have the option of staying with your old job while testing your ideas and concepts. That would be much better, right?

Don’t force yourself doing something that won’t go anywhere. There are numerous titans which taste the success after they pivoted, so why bother sticking with a failure?

7. Communicating awfully and ignoring criticisms

Sometimes, it’s not that easy to deliver your ideas to others, not to mention to accept and apply criticisms. Learn how to communicate well and be ready for the worst criticisms, then you’ll be just fine.

8.Being greedy

A smart entrepreneur always knows when to exit. Many received the opportunity to sell their startup at $100 million or even more; Foursquare could be sold at $150 million, but its founder refused, same as Qwiki, which was once valued at $100 million, now it would be extremely lucky to receive an offer worth $50 million.

The world revolves, valuation fluctuates. Sometimes founders must take a smart move of selling their startups while the value is still high, then use the money to establish an even better startup.

9. Lying

No one can prevent startups from lying, not the press, nor investors. Therefore, there would always be temptation to lie about everything, from their growth trend to traction condition, to investors to ensure them getting the money.

It may work at first, but will ruin not only your business, but also your reputation as well, eventually. So, however big the temptation to lie is, DON’T do it, for your own good.

10. Losing patience

It’s just normal that startups want instant results by focusing on growth, not product development. However, it’s not a wise call to do so. Keep in mind that the parameter of every startup is different, depending on the business type that it runs on. So, set your target rationally. A media, for example, shouldn’t hire marketing staff just yet before it gets bigger and more potential. The story would be different if we run a transaction-based business, in which you must know your expected margin in order to survive.

11. Underestimating the challenges of running a startup

To understand about this point, check out this statement by Dave McClure,”It’s hell. Too many to do. There are days when you want to cry. You lost your social life. Your world will revolve only around your startup, and it’s all about surviving, not acting stupid in front of your employees.”

“Maybe it’s not as difficult as solving world problems or hunger. But your world would be about showing that you’re successful, capable, and able to keep the harmonious external condition, while you’re being panic and stressed internally.”

12. Lacking of big dream

A good startup is formed by two types of person: a practical type who doesn’t respond big dreams and focus on encountered challenges, and a dreamer who always has a vision to move forward.