Three Startup Mistakes to Avoid for Aspiring Entrepreneur

Southeast Asia’s startup ecosystem is seeing continuous growth with every passing year. According to the SEA Startup Ecosystem 2.0 research commissioned by Singapore-based VC firm Golden Gate Ventures, funding for tech startups in the region has increased 50 times from US$130 million in 2010 to US$7.7 billion in 2020. The proliferation of startups fuels a competitive business climate that spurs innovation and speeds up digital transformation. To stay ahead of the intense competition, aspiring startup leaders have to always look for efficient ways to execute business plans while recognizing any risks. 

Even the smallest mistake could come with a high cost for a startup. Therefore, entrepreneurs need to watch out for any possible oversights and avoid them. So, what are the common mistakes startups usually commit?

Personal over Professional

Startup must be built upon a strong level of trust among individuals within it, because the company culture will be defined by these people. Many leaders believe that the quickest and safest way to create a close-knit team is by recruiting people from the existing network, such as friends or relatives. Trusting them as friends is one thing, but trusting them as coworkers is a whole different thing.  Turning friends into colleagues might be fun, but the process can get out of hand if you fail to separate between personal and professional matters. 

When you get too biased, you may tolerate failures too much due to fear of ruining your relationships. Failing to be objective can pose further problems for your startup as time goes by. If things get tough, you might not be able to make the much-needed decisions due to personal reasons. Therefore, you need to ensure that regardless of what personal beef you may have with them, you have to stay professional. Avoid any personal vs professional conflicts by defining ground rules early on, including what should be done in the worst-case situation.

Read Also: How Should Startups Cultivate a Culture of Social Change? 

Rushing into result

Having a clear goal is mandatory for a startup. But do you have everything in place to get to the finish line? One of the most common mistakes in a startup is rushing into a result, but not having enough plan. Pairing a clear objective with a thorough preparation enables you to feel more secure as you understand how you will get there. Remember that being realistic involves realizing that the market condition could change very quickly and without warning. The planning stage should include a primary plan as well as several backup plans in case things do not go as intended. Thus, maintain your focus and come up with definite strategies while also making room for flexibility. 

Avoiding market trends

It is no secret that startups aim to stand out among competitors. Sometimes, this means that they prefer to create their own trend instead of following the current market trend. While it is great to develop innovations, it is also important to stay relevant and realistic to meet market demands. Not being able to meet the needs of customers contributes to 42% of reasons why startups fail. Therefore, ask yourself prior to making decisions for your startup: are you listening to your own ego or to the needs of customers? Learning to adjust to trends should be on your behalf in running a startup. Know that you can still create innovations without leaving out the current trend by following the classic technique of improvise, adapt, and overcome. After all, you may not always be right in following your gut instinct. 

What makes the startup environment more desirable these days is that it grows with its people. In contrast to conventional and well established companies that primarily focus on keeping the current products and services delivered, startups offer room for new innovation while pursuing market demands. With the growing number of startups in SEA, it is important to ensure that your startup sees fit in competing with others. Pay close attention inside out by creating a healthy internal relation with employees and, at the same time, striving to meet market needs.

Read Also: Stay Ahead of Your Competitors with These SEO Trends 2021