Avoiding Startup Failure

Many successful founders have failed ideas, but they’ve learned from the common mistakes in the past that turned their technology dreams into startup nightmares.

But… you’re not really reading this article because you want to know about failures, are you? You’re looking to grow your idea to fruition! We’ve created this simple cheat-sheet of typical mistakes new entrepreneurs and inventors make and how to avoid them:

1.  Excessive Planning

We all may agree that it’s always better to be over prepared than under prepared, right? In many cases that can be wrong, here is maybe why. While preparation is important, implementation is critical. Proficient entrepreneurs know that paralysis by analysis could possibly kill their idea.

TAKE ACTION: Prioritize, simplify, and manage your ideas. You may want to start with a1-2 page draft of why this idea is so important to you, what change do you desire to bring to the market and how do you envision it’s success. Try to clearly state your goal and achievements within a certain time period. It may seem overwhelming at first, but a defined layout of your passion, thoughts, hopes and goals will refine your focus, clear your path, and can even help you obtain much-needed funding when the time comes.

2. Tackling Everything Alone

It’s natural to want to protect your idea. It’s your idea after all. So, while it may be feasible to go it alone, experienced entrepreneurs know that it’s not healthy or efficient to take the entire burden onto your shoulders.  TAKE ACTION:  Let qualified people help you.

There’s a saying that it takes a village to raise a child. It’s no different in this respect so don’t be afraid to utilize the help of entrepreneurial resources like technology incubators. They can help you maximize your time and effort without straining your budget. Just make sure that any team members or co-founders align with your vision, passion and the value that you intend for your business or product to offer.

3.  Entrepreneurial Naivety

The possibilities of your great idea are endless, but so are your questions around accomplishing them. The truth is certain methods work better than others so prevent yourself from wasting time, future legal issues or mistakes that can deplete your financial security.

TAKE ACTION: Research and validate your technology idea by talking to people or consultants who’ve been there, done that and that understand the purpose behind what you have decided to undertake. Attend seminars or presentations and don’t be afraid to ask questions. Hands-on experience your start up and vision approach. For instance, mentors, consultants and incubators may provide a backbone for transitioning your ideas or invention to your successful startup.

4.  Botching Your Budget

It’s one thing to invest time into your idea; but when it comes to investing your money, things can get complicated. Do you put some towards research? Hiring sales? Renting out office space? Legal or business expenses? Just where should the money go so that you can stretch your resources to achieve the maximum potential? Astute entrepreneurs know that spending and/or under-utilizing your money can be a kiss of death for your business idea. 

TAKE ACTION: Follow a process or lean startup model. These models tend to be the best cost effective and well thought out processes, that can save you a great deal of money. Speak with a qualified financial professional for advice on creating and implementing a reasonable budget.

Your Turn… Leave a comment below and tell us your start-up struggles. What additional mistakes have you seen entrepreneurs make in developing technology business idea?

Do you need help turning your failure to success? Reach out to us!