Common Mistakes of Tech Startups

Business Success

Over last two decades, technology has become an increasingly necessary element in our daily lives. As an obvious side effect, the newest and the trendiest in technology has been giving rise to new and shiny business ideas. This has resulted in the start of a new tech startup almost every day. However, not all those new tech startups reach the anticipated level of success. This article lists a few mistakes made by tech startups that account for their failures.

Absence of Co-Founders or a Team

Many startups are practically killed during their inception year because of being run by a single person. Being the only founder isn’t bad, but it severely limits your capabilities of running a business. It reduces the chances of your ideas getting reviewed by others before implementation. Also, you cannot maintain balance between all the aspects of the business. At the same time, it’s not practically possible for a single person to be an expert in everything that a business requires.

Inadequately Researched Business Ideas

Many people make serious mistakes just going by their instincts and following their passions. However, a successful startup requires a thorough study of the market, target customers, competition, location advantage/disadvantage, revenue streams, etc. It also requires creation of a product/service roadmap that gives you a preview of what you want to achieve, and in what time frame. This also becomes a tool that helps you track your progress, but does require intense analysis for its creation.

Poor Showcasing for Investors

A business idea must look good on paper before it is turned into a reality. It means that it should have a clear definition of terms, a plan of progress, listing of the revenue sources, and the forecast of the cash flow. Inadequate consideration of the cost aspects, time to market, and the market coverage is not likely to be appealing amongst investors. A poorly funded startup always struggles because of the cost compromises it needs to make along the way.

Standard vs. Ad-hoc Procedures

Standard operational procedures are almost as important as the core business idea itself. Many entrepreneurs believe that they are not required for an organization their size. However, the complexity of many tasks doesn’t depend upon the size of the project or the organization; only the scale varies. It is in the benefit of the company to keep establishing processes and reviewing them periodically so that operational activities don’t become a bottleneck in your endeavors.

Incomplete View of the Team Dynamics

For giving your ideas a shape, you require a team that works collaboratively toward the ultimate goals. For making sure that your team consistently performs, you, as a manager, need to understand their individual traits before assigning them tasks. For instance, there might be a team member who can untiringly perform the same task accurately after being trained on it once. You can assign them the repetitive tasks. On the other hand, you can assign the most argumentative of your team to review the code and the quality of the team’s work.

Insufficient Future Planning

There have been startups that grew up too fast, and their growth wasn’t sustainable because their technical expertise, infrastructure, and resources weren’t enough to match the rate of expansion. Its main reason was the lack of early planning about future scalability.

This article was written by Richard Craft, an MBA student who loves sharing his knowledge so you and your business can operate at an optimal level. He writes this on behalf of the Continental Office Group, your number one choice when looking for used desks in Dallas. Check out their website today and see what they can do for you!

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