After examining the activities of more than a thousand start-ups in different countries, many practical books have been written and published for those who want to turn their innovative ideas into successful business startups. So, what are the main mistakes of startups made around the world? Sometimes it is not necessary to experience everything on your own. You can learn from mistakes made by others, protect your money, and grow your business successfully.
Forget About Marketing
This is one of the most expensive mistakes made by startups. Usually, especially in the world of technology, it is believed that the hard part is to create an innovative product. Of course, it is important to focus on product innovation and technical solution, but do not forget to create a product that appeals primarily to customers, not the developers. That is where marketing begins!
Offers Insignificant Value
Many start-ups focus on solving a specific problem that is relevant to them, but not necessarily to customers. If the problem you are trying to solve is not a serious headache for customers or it does not create exceptionally significant value, such a product is considered nice to have benefit. If a startup bets all the cards on such a product, the chances of success are low. Startups looking to the prospect should focus their attention on creating essential value for customers.
Does Not Receive Approval from the Market
Almost 42.6% of startups try to solve serious problems and create significant value for consumers, but they do not test their value proposition under market conditions. It would probably be difficult to find a startup that has not heard of market fit, but it is belied that simply asking your potential buyers if they like the product and whether they would buy it is enough. However, you will never be able to be sure that your product is needed in the market until you ask customers to pay for it.
Doing Everything to Satisfy Investors
Startups often forget that the opinion of customers should be paramount to them. Usually, startups prepare their presentations for investors, lay out a variety of strategies and negotiation aspects, try to impress with their personality or cohesive team. However, investors are not the real customers. The conversation with investors needs attention and effort, but if you satisfy customers who will be happy with your product, such a start-up will be more appealing to any investor than one who will have a perfect presentation.
Believes That Advertising Will Spread by Itself
If you also believe that you have a unique product and advertising about it will spread by itself, ask yourself why customers should advertise you. How many products and services do you use and how many of them do you recommend to your friends every day? This belief is called the hope marketing: I hope all is well and I do not have to do anything. Many startups who do not think so have not even a clear name, let alone a plan of which of the three growth engines (sticky, viral, paid) will underpin their business development.