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Startups: Top 18 Mistakes that kill startups

Startups: Top 18 Mistakes that kill startups

Entrepreneurs create startups based on the belief that there is a need for a new product or service. As a company becomes operational, it is referred to as a startup. Venture capital companies often look for capital from a wide range of sources, including high costs and limited revenue.


  • Startup companies are businesses in the beginning stages.
  • Founders commonly fund startups, and they sometimes seek outside investments before they startup.
  • Venture capitalists, crowdfunding, loans, and family and friends are familiar funding sources.
  • The legal structure and where it will operate are also essential considerations.
  • The risks involved in starting a business are high, as failure is possible. Still, they can also be good places to work, as they promote innovation and provide excellent learning opportunities.

Understanding Startup

Inter-Ministerial Board Startup India Certification for availing tax  benefits

Startup want to market and sell a single product or service. In most cases, these companies don’t have a fully-developed business model and, even more importantly, lack the appropriate capital to expand. Founders typically provide the initial funding for these companies.

Families, friends, and venture capitalists are among the funding sources for many startups. The venture capital community is big in Silicon Valley, and it is a popular destination for startup, but it’s also widely considered the most demanding area.

Investing in research and developing business plans are among the ways startups can use seed capital. In addition to describing the company’s mission, vision, and goals, a comprehensive business plan includes management and marketing strategies in addition to market research.


Special Considerations

Entrepreneurs must keep several different factors in mind when launching a startup and beginning operations. Here is a list of the most critical factors entrepreneurs need to consider.

  • Location

Any business can succeed or fail based on its location. Costs associated with starting a business are often among the most important factors to consider. A startup must decide whether to conduct business online, from a physical location, or in a retail store. Depending on the product being offered, the site will differ.

For instance, a virtual reality hardware startup may require physical space to demonstrate its features face-to-face to potential customers.

  • Legal Structure

The legal structure of a startup should be considered carefully. Sole proprietorships are best for entrepreneurs who are also the company’s key employees. Businesses with several owners are often incorporated into partnerships, a legal structure that allows for joint ownership and is relatively easy to establish. Startups can reduce their liability by registering as limited liability companies (LLC).

  • Funding

Venture capitalists and family and friends are two standard methods startups raise funds. Venture capitalists are specialized investors who fund startups. Many people turn to crowdfund to get the cash they need to move ahead with their businesses. The entrepreneur sets up a crowdfunding website to raise funds for the startup.

Startups can use credit to begin operations. Using a line of credit as funding may be possible for startups with perfect credit histories. These option risks are high, wildly, if the startup does not succeed. Another option is to give small businesses loans to fuel growth. Microloans are short-term, low-interest loans geared for startups through banks. To qualify, companies must create detailed business plans.


 Startups: advantages and disadvantages

What are some advantages and disadvantages of starting/creating your own  startup? - Quora

Working for a startup has a variety of advantages. A couple of them are responsibility and learning opportunities. Compared to large, established companies, startups typically have fewer employees. Hence, employees usually wear many hats, working in various roles, which results in greater responsibility and more opportunities for learning.

Entrepreneurship is typically relaxed, resulting in a more communal working environment with flexible hours, more interaction between employees, and greater flexibility. In addition to better benefits, startups typically have shorter workweeks, nurseries for children, and free food.

It can also be more rewarding to work at startups, where employees are encouraged to experiment, and managers allow them to run with ideas with little oversight.

Startups have the disadvantage of increased risk. This mainly affects their long-term viability and success. Before a new business can start making money, it has to prove itself and raise capital. A startup’s progress must be transparent to investors. To turn a profit, there is always the risk of shutting down or not having enough money.

It is not uncommon for startups to work long hours as everyone is working toward the same goal-the success of the company. The result may be high tension moments and compensation that isn’t commensurate with the work done. There are always a few startups working on the same idea, so there is always a lot of competition.


  • More opportunities to learn
  • Increased responsibility
  • Flexibility
  • Workplace benefits
  • Innovation is encouraged
  • Flexible hours


  • Risk of failure
  • Having to raise capital
  • High stress
  • Competitive business environment


The Top Startup Mistakes

18 mistakes that kill startups! Make sure you rectify it if you are making  one! #thefounderscafe #startup #entrepreneur #nasscom #delhi #business  #success #s…

Do you have a startup? My apologies, but there’s a good chance it won’t work out. According to a recent study, 75% of startups fail.

Do not let that statistic discourage you, no matter how hard it may be. Not every startup will succeed. The team may be working on a product that isn’t particularly engaging or useful. Perhaps they are trying to solve too many problems at once. Alternatively, the co-founders might have a toxic relationship that will hinder growth. They might not have considered product-market fit. Taking advice from those who’ve been through the early startup phase can help you avoid your company’s fatal flaw. You’re in luck, time-strapped entrepreneurs. We’ve collected some tips from the pros so you can avoid some of the most common game-ending mistakes that young startups make. Take a look at why startups fail:

  1. Single Founder – Single founders have little chance of securing large amounts of funding. It’s no accident that successful founders worked in teams.
  2. Bad Location – Apartments can be changed in every way except their location. In the same way, you cannot change the location of your startup.
  3. Marginal Niche – Choosing an obscure niche would result in your startup being in the corner. Going about this is not the best for anyone afraid of competition.
  4. Derivative Idea – Remember, the Google of tomorrow may not be the Google of today.
  5. Obstinacy – Startups fail left, right, and centre due to an inability to adapt.
  6. Hiring Bad Programmers – The demand for exceptional programmers is always high. Employ good programmers.
  7. Choosing the Wrong Platform – Whether your startup survives or dies depends on how fast you scale. Scalability is difficult on the wrong platform.
  8. Slow Launch – The longer you wait until the startup’s launch, the longer it will take to find out if it should exist.
  9. Launching Too Early – By launching too soon, you may not handle any situation.
  10. Having No Specific User in Mind – You need to know who will be interested in your product if you think someone will.
  11. Raising Too Little Money – The amount of money you have may not permit you to do everything you wish you could.
  12. Spending Too Much – The moment you spend more than you earn, you’re broke—end of the story.
  13. Raising Too Much Money is easy to feel successful even before you accomplish anything useful when you raise too much money. Ultimately, it’s about impressing your users, but losing too much money is a risk.
  14. Poor Investor Management – Make users happy if you choose between making investors happy or investors happy. Customers will be happy, and investors will profit.
  15. Sacrificing Users to Profit – Making money is always possible. Making users happy, however, cannot be said. The product needs to appeal to them.
  16. Not Wanting to Get Your Hands Dirty –Meet people by going out. Don’t try to solve every problem with the coding.
  17. Fights Between Founders – Conflicts between founders are very common and can have lasting effects.
  18. A Half-Hearted Effort – If you are not determined to see your startup idea through to the end, you will fail.


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