What helps a start up become a successful business? Avoiding these common mistakes is a good start…
- Not thinking about the customer:
In the beginning a ‘start-up’s’ customer is excited about getting on board early, however as the novelty wears off and the customer base grows the customer’s experience starts to matter more. Often the start up is so focused on their product that they forget to manage the customer’s expectations and results. Always keep your customer at the forefront of what you do and ensure their experience is as good as your offering.
- ‘Selling’ too much of the company to get the business off the ground:
To get your start up going you might need to get some investors. A couple of silent or skilled investors can be a great thing. Although it is important that you ensure that you do not “sell” too much (of the company) to get these investors on board. If the founders intend to maintain control of the company the share division will need to represent this.
- Not launching at the right time:
Bad news – someone else probably already has the same idea as you. Be careful to time your launch perfectly to avoid playing second fiddle to the competitor that you don’t even know about yet. In reverse make sure that the market is ready for your product or service before you launch. If the market isn’t ready then you launch will come and go without much buzz at all.
- Reinventing the wheel but not selling it:
Communication is key. Your product might be a game changer or your service might be unheard of, but if you don’t communicate that to the target market then forget about it. Communicating your key differentiation is of utmost importance. Paint your product in light of the market’s present day, desires and space. Compare and differentiate and don’t be afraid of doing so.
- Founder relationship dramas:
There are a myriad of problems that can arise from the relationship between the founders of the company. Firstly, make sure you have more than one founder (investors don’t like investing in one-man shows – it’s too risky). Make sure that you have an understanding of how much of the company each other owns and why. Make sure that you all have ways of leaving the company and procedure for doing so. Create a voting method that will resolve conflict when necessary. In relation to founder relationships there is no such thing as being too careful.
Rubiix is passionate in assisting clients achieve their business goals, including support for start up businesses to get going and grow. Over the years we have helped many start ups become the successful businesses they are today.
Contact us if you would like to break free your concept today!
Submitted by: Matthew Muscat – Senior Accountant
Email Matthew