With the numerous tales of how people made it big with almost nothing, it’s easy to jump into the startup world with full enthusiasm. Startup is a business developed around new ideas. If established successfully, it can have a potential ROI. Over the past several years, a large number of misconceptions have appeared about how startups operate. 5 Common Misconceptions About Startups:
Idea is everything
It is true that everything begins with an idea but most startups assume that “idea is everything”. And this idea chosen is only one that will convert them to the grand startup. But in reality, there is another aspect that matters much more than idea and that is “execution”. Idea and reality both are different and one doesn’t guarantee the other. Starting a business without measurable, scalable and achievable business idea with lack of execution could kill your startup.
We shouldn’t think about making money
It is common to hear that if you are going to start or join startups, then you should not think about making money. You are in initial stage and you should think about offering the service or product at low cost. But this is not the only solution. Instead of reducing the cost you can offer a demo with free trial or provide coupon codes. In reality, the success of your startup is measured by the turnover and cash-flow, so startup needs to be money oriented otherwise they would never make it big.
Customers will come and pay for our service
Many startups follow the saying – “Build it and they will come”, without knowing that customers need a reason to come and stay. This saying is best fitted to the successful big companies like Apple, yes, they build and customer comes. But you are not a big name or brand in the industry yet. Customers will not buy your service or product if they don’t know about you. So it’s very important to address the questions below:
- Why do your customers need you?
- Who is the customer’s current supplier?
- How will the product or service be there in the market?
- What do you know about your customers?
- How will the audience know your product or service?
The idea of marketing comes here. Startups assume that marketing is required when they’re established, but in reality, it should be a crucial part of their business plan from day one. They need a marketing strategy to achieve the growth either through social media, press release, webinar, content marketing or journalism.
Failure means game over
If you start a business and doesn’t succeed then you should quit. There is no sense in being a fool about it. It’s not the real fact. Startup companies with new and unique technology or idea sometimes produce huge returns. Google, Facebook are the best examples here. However, the failure rate of the startups is very high. According to Wall Street Journal, 3 out of 4 start-ups fail. Startups need to understand that failure can be delay not defeat.
Our assumptions are correct
Startups make lots of assumptions in their initial stage, for example they have a product/service consumers want or it is easy to build a team if they have an idea. But reality is that there are people who are dreamers and there are people who are practical. The startups need both types while working toward a massive achievement. Without proper research and planning these assumptions can hurt startups and the goals they are trying to achieve.
However, recognizing common misconceptions can help you to overcome the challenges and obstacles in your business success. Some startup fails due to improper planning and management, while others due to large number of issues occurring in business.
Startup is like a child which needs to grow, nourished and be matured by those who really do want it. Don’t let these misconceptions discourage you!