Steer clear of these common startup mistakes

Navigating the world of the startup can be challenging, even daunting. Putting a wrong foot forward at any point in the process could have serious repercussions later, and it’s a learning curve that can be pretty steep.

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Navigating the world of the startup can be challenging, even daunting. Putting a wrong foot forward at any point in the process could have serious repercussions later, and it’s a learning curve that can be pretty steep.

 

The website Technically recently shared some interesting advice from Wayne Schepens, whose 25 years in cybersecurity and his personal experience of starting two companies give him an insider’s perspective on the mistakes startups make. He writes that having the know-how to establish a new market or go into one that already exists can be a big challenge. Here are a few of the pitfalls Schepens believes entrepreneurs should watch out for:

 

1: Issues with raising capital

Having a process to raise funds that favors less equity dilution can be a concern if there are unknowns or delays. “Startup leaders tend to plan for the best-case scenario — assuming that the launch of a product will be rapidly followed by an influx of POCs and orders or expecting that a round of funding will close at the originally scheduled time,” writes Schepens, adding that this can upset the balance of running a business and raising capital and lead to diminishing returns in both departments.

 

2: Keeping the focus on the best people

Schepens cautions about “silver bullet” ideas or employees – ones which can (supposedly) quickly solve an issue or lead to a huge growth in profit. However, he doesn’t believe “silver bullets” exist. Schepens explains, “Having a group of professionals that excel in their own realms of expertise and can execute business initiatives cohesively and enigmatically is something that can make or break a company of any size.”

 

3: Pick your metrics well

Simply going off of how much money was raised in the first round of funding isn’t going to be a metric that will lead to sustainable success. “The true measure of a company’s success comes from tactful execution and, eventually, revenue, growth, team chemistry, customer traction and approval, and shareholder relations,” Schepens writes. “When worth is based primarily on capital raised, other aspects of business operations are not given the attention needed to keep the wheels spinning.”

 

Going digital is all the rave in the world and many startups begin to invest in digital tools and services without keeping the future in mind. Playing to the short-game and not the long-game. Investing in the wrong technologies or digital solutions can cost you in the long run – hindering scalability, compromise brand reputation and security. Ultimately, may not be the right fit for your business and how you operate. In the worst-case scenario, the help you need may no longer be there when you need it. Why go at it alone.

 

Lo-Key Solutions can be a great resource to help you stay on track with success as your startup thrives. We can custom-craft solutions or find the best technology ready for you to use, bringing your processes in line with the ever-changing digital world.

Solution’s that empower businesses to move from legacy to digital with ease.