6 START-UP MISTAKES
TO AVOID
Here are the common mistakes made in the
first year of a business.
NOT DOING
ADEQUATE RESEARCH
There
is no dearth of ideas; the tough part is converting it into a viable business
model though market research. It not only reveals the potential, but also the
limitations of the idea.
GOING BY FLAWED
ASSUMPTIONS
There
could be a few bugs in your business in the initial financial projections A
simple solution is to beta test your prototype to fix the faults before the
product is launched.
SCALING UP TOO
EARLY
Experts
advise to nail it first and then scale it up--start small, have short-term
goals, perfect the product and revenue model, then scale up.
NOT KEEPING TABS
ON COSTS
Keeping
the overhead costs low is essential. A small venture is starved of money and
if expenses are not controlled, it will soon run out of working capital.
Another area where you can cut costs is while building your website.
UNDERESTIMATING
MANPOWER NEEDS
If
you think you can manage all by yourself, you are mistaken. You need a team
that can take care of various peripheral aspects and leave you with the core
functions.
NOT MAINTAINING A
FINANCIAL BUFFER
Make
sure you have your finances in place before taking the plunge. Have a
contingency fund to take care of 6-8 months of expenses.
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ET21DEC15
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