Published on March 1st, 2013 | by Jose Vasquez1
The 5 Biggest Mistakes Startup Tech Companies Make
Understand and avoid the most common mistakes of startup tech companies to keep your momentum unhindered.
Making mistakes as a startup tech company is natural; some of the greatest and most successful entrepreneurs of all time built their empires only after multiple crushing failures. Still, it’s best to learn from the experiences of those who came before you and avoid mistakes proactively whenever you can.
The five major mistakes listed below are some of the most commonly made in the world of startup technology, and have been at least partially responsible for the high rate of failure in startup companies. Learn them and avoid making them, and you’ll already be leaps and bounds ahead of your competition:
- Not having a plan. This is far and away the most unforgiving of mistakes. Too many startup tech companies start trying to build momentum without a strategy. Do you have your business plan written out? Do you know what your end goals are? If not, stop whatever you’re doing and focus your attention on making a plan.
- Spending capital recklessly. Reckless spending is actually a bigger problem than getting funding to begin with. Once you have access to the funds you need to drive your business, control them and spend them wisely with a rigorous and frugal budget.
- Not listening to people. This mistake applies broadly; as an entrepreneur you have to be able to listen to your advisors, your workers, and your customers. Learn from their ideas and feedback instead of ignoring them or burying them under your own thoughts.
- Getting distracted. True, businesses need to be adaptable and startup tech companies should always be wary of the next latest, greatest advancements. But you can’t let yourself jump from shiny toy to shiny toy, or you’ll never finish anything.
- Failing to market effectively. Your marketing strategy is responsible for your company’s reputation and customer awareness. Make sure you know your target audience and speak to them effectively, and use appropriate channels to get your messages out.
Remember, you can’t let mistakes stand between you and your dreams as an entrepreneur. The important thing is to think ahead and try to see possible failures before they happen.