It feels good when you launch a new business; the anxiety of great things rolling on is exciting. There are various things that an entrepreneur has to keep in mind before starting out. These things help in steering and clearing the roadblocks as well as the pitfalls. It is important to be critical on decisions that may create more problems than solutions for start-ups. Here are some of those dangerous decisions that have to be considered before starting a business.
After you start a business, the worst mistake you can make is picking up a partner who is likely not to workout. Partners in most cases will want to join you after your start the business although this can be good, but at times it does not work very well. In choosing a partner, considers facts such as background of a potential partner. At times just rely on your instincts regarding the partners joining you if someone if they are a good fit or not.
Most entrepreneurs take venture capital for their business when it is not necessary. It shows how confident you are, but when the business starts picking up you will feel cheated when you realize that you did not need the venture funds. It hurts when someone owns 25 percent of your business that you could have owned and enjoys the profit alone, after putting in all the hard work.
It is very hard to share your interest between the start-up and the original job. When you decide to be an entrepreneur, just cut off the ties with your employer and devote your energy on the start-up. You can still hold onto your current, but this is not that good with the start-up, and you won’t reap a lot from the start-up.
Hiring any of your friends or even family member is like suicide to the start-up. No matter how good the family members are do not employee them as the business becomes a family matter. All the same if you get your sister in law or you college roommate who has the requisite skills. The skills may be very useful in a number of ways, you may want to consider them if only they have the expertise regarding your product.
Its feels good to purchase the latest in technology, but it’s wise if you can do the same job with the existing equipment as this reduces your expenses and start-up capital needs. Try as much to hold off on purchasing new supplies and equipment and focus on data to day needs of the business.
In a start-up keep your eye open; go into the business knowing what is sensible and what it does not make sense. Reliable decisions from the beginning will form the foundation of the business. Make your business easy to build as possible as this increases profit. Start up business idea has huge success chances and still there is an equal or half chance of failure.
Taking too much time in preparing the business for launch can be dangerous as you may take the time over-thinking hence over-complicating the aspects in the start-up that would have worked better if left alone. It is also very possible to deter future investors as well as missing crucial stage in the marketplace that you have been making for the time now.
Another wrong decision that you may make on your start up is not getting co-founder. Understand that there is too much work that you need to get several people to help you with the start-up idea. In fact, the investor will pick your business for capital if you have several co-founders. Lack of co-founder can make your business miss funds from venture. Signing on several co-founders shows creativity and confidence with your start-up mission and vision.
Try your best not to move the ideas of the investor into the business. Investors just think of the cash they get from the business and keep their worries on the investments. They may try to offer advice and ideas, but know that they have no any skills on running the business. The best you can do with the investor is analyzing the ideas and maybe take what makes sense to the business.
Don’t think that the million copycat organizations in the market have done anything wrong. Get your business a derivative sense and ignore the thinking that derivative ideas are the symptoms of death of business and profit.
Derivative designs reduce risk by basing the business on a model used by some other organization. Most customers have an option they trust and enjoy the only thing you can do for them hence is to offer new ways to solve the problem.
There are lots of pitfalls and sidetracks for the early stages of a start-up, although some can still be applicable at later stages.