By Fernando Berrocal

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There are many misunderstandings about the feasibility of launching and operating a startup through its early stages. Nevertheless, numerous studies have attempted to place numbers on these business statistics. According to current research, approximately 20% of small firms fail in their first year of existence. In the next five years of operation, this percentage increases by up to around 50%. Finally, only 10% of those small firms remain in operation after everything is set and done. 

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There are different reasons why this occurs, from financial, information technology (IT), and operational problems to legal matters that occur. However, according to these studies, the three most common reasons for startup failure are “lack of product-market fit”, marketing issues, and recruiting. These three main issues represent almost approximately 75% of the reasons for startup failure.

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Any entrepreneur would be forced to reconsider launching and growing a business after learning these cold statistics. With that scenario, it can be much harder to do that than you think. There are tough choices to be made and many everyday obstacles to overcome. Therefore, most startup entrepreneurs will make mistakes along the way.  Aside from the fact that beginning a business is highly problematic, most business owners have little to no expertise in managing any sort of business. Complex tasks like finance, accounting, management, information technology, and hiring become quite challenging as a result. Additionally, since most business owners lack the management expertise, they are more likely to make errors that might endanger their business in different scenarios.

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If you, as a startup entrepreneur, can keep from making general mistakes, your startup will be able to survive its period of rapid expansion. After that, you can start planning how to react to difficulties that start to appear in the early stages of your startup operations. We will try to highlight the most common frequent errors startup entrepreneurs make after launching their startup in this blog post.

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Start-ups frequently make mistakes while experiencing fast development: Inexperienced startup entrepreneurs may have all the potential that comes with launching a startup business, but often lack the management and marketing experience to do that. First-time business owners should focus their valuable time on learning about the potential pitfalls and unexpected turns they may encounter along the way in the planning stages. These operational mistakes may hinder business expansion altogether. Scaling up shouldn't be difficult if you know what errors to avoid and the typical mistakes known by most experienced entrepreneurs. The main errors are the following:

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• Excessive Fundraising During the Production: As the creator of a business for the first time, you can accept investors' offers of a sizable amount of money regardless of other crucial considerations. Although it may seem like a good idea to raise as much money as possible, the truth is very different. No matter what stage your organization is at, raising money at the incorrect moment can do severe harm. 

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Equally significant to the amount of money you want is finding the proper set of people to invest in your business. If you are not very attentive, you can find yourself dealing with an investor that threatens board meetings, destroys your business culture, and leads the staff on the wrong path. However, you may always decide on an initial coin offering utilizing cryptocurrency trading software like bitcoin code if you're unsure about choosing the best investor for your business.

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• Not Integrating Technology Properly:  Young business owners sometimes lack the perspective to see beyond their core businesses. Instead, most of them try to stay with tried-and-true business strategies and abstain from implementing technology that may automate corporate operations to their advantage. By doing this, they damage their organization's reputation and run the danger of losing ground in the marketplace. Most business owners stay with tried-and-true procedures when it comes to business management software, personnel management, and online transactions.

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However, if you are a startup business owner, you must be ready to experiment with cutting-edge technologies regardless of the size of your business. Try to stay up to date with the latest technological developments as they are always changing around us, and you want to be a skilled expert to benefit from them. By subscribing to tech-related journals, newsletters, blogs, etc., you may do this. Additionally, you may network in your community by going to local events. Look for solutions that can automate your firm, so you have more time to consider growing it beyond its current boundaries.

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• Bringing on the Incorrect Team Members for your Startup:  In every business, having the ideal team member is essential for their success. Nowadays, most startups struggle to expand effectively because they lack the requisite business abilities that their members should possess. It is crucial that you employ the correct individuals with the appropriate skills for your business, so take your time and be patient when looking for a new team member.

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You shouldn't hire "generalists" to fill specialty tasks since various abilities are required to perform different sorts of roles. Ensure the new employee is aware of the information and abilities they require and that they are familiar with your vision, goals, culture, and business innovations.

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Losing Business-Focused Attention:  Starting a business nowadays is not a challenging process, especially in this digital age.  At the beginning of this journey, you are most likely to be full of energy, hope, enthusiasm, and willingness to do everything for the expansion and viability of your business. The same level of commitment and zeal must be maintained over the medium to long term of your entrepreneurial journey.

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You will encounter many problems and difficulties as your Startup progresses and matures. There may be numerous instances when you'll just want to give up and be a safe employee in the corporate world. This is when an entrepreneur's genuine enthusiasm is tested. You must concentrate on and visualize your success if you want your organization to grow and have a strong brand that is recognized in the marketplace.

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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.