If you want to try something different as a goal, then try startups. By the way, startups are not so easy, but they are too tricky. Tricky in the sense it needs a proper framework to implement your actions. There are lots of things in it, such as something positive but something negative as well.
It indeed has a golden future but a failure at the same time. It only demands your knowledge and skills. Yeah, there is no need for certificates and degrees; it requires only your creativity.
The only aim of an organization or a company is to achieve organizational goals. For this, every member of a team, or you can say stakeholders, must be concerned with the work that is going on in an organization or firm.
Whether startup stakeholders, including the founders, investors, executives and workers, have a role to play in the governance act. At a particular level, all players have an equity share and the same organizational goals.
There are fundamental issues like shareholders versus board, board versus founder/executives, and shareholders versus founders/executives.
Usually, startup stakeholders, including founders or executives, ignore the board, which creates conflict between them. And this issue proves the communication gap between them after that failure.
Apart from these things, startup owner usually make many mistakes, which further proves harmful.
Which are the most common mistakes made by the start-up owners?
- Being afraid of failure: yes, the basic mistake of a startup owner is fear. Fear of failure makes the owner just suppress them, which becomes a failure in the journey.
- Lack of strategy: Sometimes, people just enter a startup but don’t know what they want to do. They have no plans, strategy, or paperwork, making them visionless and becoming a big mistake in their life.
- Wrong hiring process: Initially, the owner needs people to work with them. They are just hiring and hiring people, but except few people, no one is there who wants to do work or who knows how to work. So to avoid crowding, startup owner should use a proper and correct hiring process.
- Avoid the cheapest product: Here, it is very important to use good quality materials as our raw material because it is a key factor for the quality of our final product.
- Not user-friendly: The customer is treated as God in our society because the success of our products in the market depends on the product’s user. If we start to ignore our consumers, it makes an impression on the user. That creates a lack of satisfaction in the consumer’s minds.
- Increasing the status of the product: when you are new in the market, the user of the product wants to know about you about your product. In this case, if you raise the status of your product, then due to an absence of trust, you might lose your resources and efforts.
- Lack of platforms and markets:- In the beginning, no one knows you, and you might not know anyone. Making connections takes time, but till now, there has been a lack of platforms and markets.
- Resources ran dry:- It means optimum utilization of resources is very important. But due to a lack of knowledge, resources ran dry.
- The pricing model is flawed:- When you are on your new way, there is less knowledge to fix the product prices. It might create a high or low price compared to the actual price.
- Release products at the wrong time:- The market runs on the trend or festival. When there is nothing like a craze in the market to purchase a new product, or there is no season according to your product, then startup owner should prefer to wait for the season.
- Lack of proper legal structure:- Sometimes, startup owner have less idea about legal structures, which creates a problematic scenario for them that also becomes an obstacle to success.
- Trying to become independent:- Never think that you are the only one who can dominate the work pressure. As a startup owner, you should always focus on teamwork that saves resources.
- Connections with wrong investors:- Your investors should be stable and experienced so that they can help you as an advisor or supporter in case you need them.
- Fear to accept contracts:- Never think about your failure before doing your work. Try to take contracts and work on them. It helps in your revenue and learning as well.
- Wasting money:- As a startup owner, you are at a crucial point. You have limited resources and less experience, so avoid being concerned about wasteful activities like unnecessary advertising, continuous hiring, etc. It is only about your waste of money.
- Launching without completion:- Avoid launching your product without completion because it creates instability for your product in the market. Once you finish the production of your product, then release it in the market.
- Hiding the actual condition of the firm:- When you are new in the market, sometimes you only focus on your fame of yourselves. And in this, you are just showing your fake success. Never do that because it may create a burden of debt on you.
- Ignorance of demands of business:- When there is a need for something in the firm, please do not avoid this because this is your investment. By this, you get a return in the future.
- Expanding with no field:- When there is no market requirement, don’t expand your business. First, analyze the market according to your product, then expand your business. Because being a startup owner, you have fewer resources right now.
- Lack of proper record:- Every transaction should be recorded in proper form to avoid conflicts between revenue and expenditure. Sometimes these conflicts make the situation that winds up the business. So avoid it.
According to a survey of Economic 2021-22, India recognized approximately 61,400 startups for promoting industry and internal trade.
This poll also found that at least one new company was present in 555 Indian districts. Such data demonstrates the impressive growth in the number of startups during the previous years. India became the third largest startup ecosystem in the world after the US and China.
The statement above says that if startups are growing, there must be fewer mistakes. No one says that there is no mistake. If you make a mistake, it is not your fault, but if you continue the mistake, it is bad.
Like an established organization, startups also share challenges, which may vary with the size of their operations and funding.
As the senior head or corporate professionals, company secretaries can advise the startups and help them tackle the challenges by providing challenges and references.
Your mistakes are the key to your success. Do mistakes. After that, correct them and learn from them.