By Fernando Berrocal

Different researches across the world show that almost 90 percent of startups have failed in the year 2019. That shows the fact that starting a business from the ground up is very difficult to accomplish in any part of the world. Every year that a startup survives, it faces increasingly difficult odds.

The main difficulties are the following: cash is scarce while running a startup, making effective networking is very difficult, and it might feel as though you're alone in the world. The most unfortunate aspect is that some of these enterprises collapse for reasons that could have been avoided. 

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Would you want to learn more about the top main errors made by startups and how to prevent them? We will explain them in the following points:

• Failing to Obtain Enough Funding:  Although many startup entrepreneurs recognize the need for finance, not all are aware of how to obtain it. You will have to consider all of your choices while obtaining funds for a startup. 

There are a variety of businesses that may assist with startup financing, and not all of them have the same needs or downsides. The most important ones are: Angel investors, Venture Capitalists (VCs), bank loans, other types of loans, and even advance contracts can help you get startup funding.

• Not Having a Clear Idea of Who Is Your Enemy: Knowing who your rivals are and what services they provide is critical. This is crucial to understand for two reasons. Firstly, you can ensure that your service is superior if you know what your rivals provide and provide the same service. 

Second, knowing what your rivals have to offer allows you to ensure that your product fills a niche that they don't. Too many startups try to compete with large companies in difficult-to-compete areas.

• Expansion that is too rapid:  It's understandable that you have launched your business and want to grow as fast as possible to feel more confident shortly about it. But you must try to branch it out into other sectors, be sure you have a well-established product with devoted customers. Your financial flow will pay off in the medium and long run, be patient and wise.

• Technology isn't being used to its full potential:  Many small businesses discover that they are unable to compete with industry giants. Taking use of the technologies available to you is one approach to avoid. 

Modern technology has the potential to level the playing field between established businesses and newcomers. Too many startups try to compete with large companies in difficult-to-compete areas. In the worst scenario when you don’t know where to start, consider finding a technical co-founder. These professionals are responsible for the tech side, of course. However, they’re also expected to help shape your vision, to be its best version.  

• There isn't enough Research: Sometimes entrepreneurs are so captivated by the prospect of creating an innovative product that they overlook the importance of determining whether or not consumers will want to acquire it. Always make sure you're studying not only your product as a whole but also the demand for it among consumers and how to approach them.

• Not Enough Advertising:  To get customers excited about your product, you'll need to advertise it. Even before you complete production, advertising may assist spread the word about what you're going to release.

You run the risk of people not knowing about your business if you don't market it adequately. They won't buy your product or, in the worst-case scenario, they even aren't aware that it even exists.

• Overpromising: One risk of advertising before completing your product is that you may be tempted to include features in your advertisement that you have not yet implemented in your final product. This should not be done in any circumstances. Consumers despise it when they feel that you've lied to them. Especially if you've breached an important promise to them and not deliver in the final product.

Are you ready to bring your startup to the next level. Apply to MassLight’s next batch. MassLight supplies capital and a dedicated tech team. We take equity in return. Have questions? Refer to our FAQ page.

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