How not to do business – common start-up mistakes

 I had a great learning experience, when i was recently associated with a Start-up in my consulting arrangement. Thought, it can be a learning experience for many as to how to handle a start up with minimal capital.

Product: It is very important that product strengths are detailed about and if required trials to be carried out, so that info from the trials can be shared with potential users. When there is a untested and untried product ever buyer/user expects someone else to lead rather than be a leader themselves. This is more pertinent when a product needs certain investment in infrastructure in addition to the product cost itself.

Clarity in approach: It is very important that one sets out a road map for roll out and ensures there are enough resources to take it forward. In case the resources are limited, then the roll out should suit the fund availability rather than being ambitious.

Not being greedy: Market is there and can be captured with a good product/service. But wanting to be everywhere with not enough money in the pocket is one thing entrepreneurs should avoid at all costs. Based on the product/service useability, market trials if carried out in the closest area to where one is head quartered would help in taking necessary course corrections and also provide necessary after sale service in an efficient manner. By spreading the wings far and wide one might end up taking the risk of too much to handle.

Strategy: It is very important that any organisation invests some money on market research to understand the depth and potential for its product. In absence of a MR report, it becomes difficult in making a marketing plan. While experimentation becomes the order of the day, it can prove very costly both in terms of money and time.

Sales team: In the absence of a reputation it is becoming increasingly difficult to attract good sales people to join a start-up, as they are not sure how the product is going to perform and hence would not like to risk their careers. This is where one needs to think out of the box and try and hire go-getter with high motivation by providing high incentive for success. This is a worthwhile cost when one considers the lack of brand positioning and visibility.

Testimony: It is going to be utmost important that, testimonies from as many users are obtained to ensure conviction among future users. For this it is very important that one needs to have field trials, users (if required by providing necessary infra) and more importantly satisfied people, who will vouch for the product either in person or on video.

While wanting to be in the market is an ultimate desire, if the same task is not planned well, you will only end up delaying the actual success.