When it comes to beginning a startup company, there are plenty of different obstacles that must be overcome. Without the right amount of knowhow, you may find that your ventures have ended before you have even had a chance to begin. If you are not the most knowledgeable individual when it comes to the complicated world of business, you might feel a bit at sea. It is an incredibly competitive marketplace out there and, even if you have an amazing idea, there is no guarantee of success. The best that you are able to do is plan accordingly for your business and make sure that you follow the right advice. Here are a few basic mistakes that you can avoid in order to be more likely to see success in your startup’s future.
Remove Doubt
When you are marketing a product, you have to believe in what you are selling. If you do not stand behind what you have to offer, how can you expect anyone else to? The way to snag investors is by speaking with bold confidence about what you have and why it is a viable investment to get involved with. Josh Tetrick, the founder and CEO of the startup Hampton Creek, was able to get people interested in his Just Mayo product because he had a simple plan and believed in what he was selling. If you are going to find funding for your endeavors, it is essential that you remove any signs of doubt that you might have within you and exude the confidence that investors will be looking for.
Do Not Act Alone
Once you have figured out what your business is going to sell, there is a lot of work to be done. Not only do you have to find investors, but you also have to make sure that you are on top of your budget, distribution, marketing and all other areas that must be covered when a business is beginning. An important mistake to avoid during this time is acting alone. People tend to accomplish more when they work with others, and there is good reason for this. Every single individual that you know has a unique skillset that he or she is working with. Some of these skills will come in handy as you move forward with your business. If, for example, you are not good with social media, you will be doing yourself a favor by connecting with someone in your circle that is exemplary with modern technology. Doing this will allow you to see success on fronts that might otherwise be lacking. It is also a good idea to compensate your friends accordingly. Even if you are just offering up a nice bottle of wine, it will go a long way to show that you are not looking to take advantage of the good graces of those that you care about.
Avoid Verbal Agreements
The marketplace can often be cutthroat. There are hundreds of startups emerging every month and each one is trying to find investors. In order for you to be able to see success, you cannot simply rely on a vague promise. Some investors are going to tell you that you have a good idea on your hands without making a commitment of any variety. This usually happens when an investor does not want to say no, but also is waiting to see if there are any better ideas out there. While it is understandable, investors have to be smart with their money, it still is not helpful to you and your cause. Ask for agreements in writing and, should you not be able to obtain this, politely mention that you will have to look for other interested parties. This is a game and everyone respects someone who knows how to play it. Do not wait around for money that might not be coming, be active in how you pursue financial options, and make sure that you do not wait around for anyone.
There are plenty of challenges that you will have to face when you are just starting out with your startup. Following the examples put forth by companies such as Hampton Creek, you will be able to see exactly what it takes to survive. Be confident in what you are selling, be sure to take advantage of the services that those around you offer, and always utilize caution when you are speaking with investors. Following these points will help to steer you in a direction that will work well for the future of your startup.