A comprehensive overview of typical pitfalls and strategies to prevent them.
Part 1 of this three-part article looked at Market Research, Value Propositions, and Financial Planning as aspects of a startup business that are often overlooked. Part 2 looked at Neglecting Scalability, Failure to Adapt, and Disregarding Marketing and Branding as common business mistakes made by startups. In this part, Part 3, we will look at Not Building the Right Team, and Not Becoming a Member of Equity Match member as mistakes in business that can be made by a startup.
7.Not Building the Right Team
A crucial factor that influences the success or failure of a startup is the team, which is the group of people who work together to create and deliver the company’s product or service to its customers. They are the driving force behind every startup company, and they are the ones who bring a founder’s vision to life, solve problems at every level, overcome challenges that a startup company may face on a day-to-day basis, and achieve goals set by startup founders.
One of the many common startup mistakes is that startups do not build the right team for their startup. They either do not have enough people, skills, or diversity in their team, or they have too many people, conflicts between its team members, or turnover in their team due to any of a multitude of reasons. They also do not have a clear vision, mission, culture, or values for their team, or they do not align them with their team members.
In the recent past, perhaps the most striking example of a startup that made poor decisions from its inception and seemingly adhered to no best practices when building an optimal team is Theranos. From its founder Elizabeth Holmes, who faced and was charged with fraud, to key positions being occupied by unqualified and inexperienced personnel, to fostering a culture of punishing potential whistleblowers, Theranos was, in hindsight, doomed from the beginning. Theranos ultimately failed due to this and a variety of other reasons, but key positions being filled with those who have the right skills and experience would arguably have allowed a company with a similar product to succeed.
Founders should build the right team from the first stages of the company. They should use lessons learned from other businesses and their own experience to hire people who have the skills, experience, passion, and fit for your startup. Founders should also look for people who complement each other’s strengths and weaknesses who can collaborate effectively and efficiently and who share your vision mission culture and values. Founders should also manage their team well by setting clear roles and responsibilities; expectations and goals; feedback and recognition; and incentives and rewards.
8.Not becoming an Equity Match Member
Starting a new business is not easy but it can be rewarding if done right. By avoiding some of the common small business mistakes by taking mitigating steps such as those listed in this three-part article, you will find that your business will be more likely to succeed.
Becoming a member of Equity Match is one of the best investments you can do to ensure that your business meets or exceeds your expectations. We have multiple membership plans, based on your needs. Talk to an advisor today and find out what benefits you stand to gain from EquityMatch.co.
In Our Next Article:
Our next article in this category is entitled “Learning from Failed Startups: Case Studies in Entrepreneurship,” where we look at what business lessons we can learn from a few famous startup failures.