editor’s note: the author of this paper, Martin Zwilling is the founder and chief executive of CEO, a start-up company that specializes in providing products and services to startups and small business entrepreneurs.
many people want entrepreneurs to make mistakes, because the founder is exploring the unknown areas. In fact, investors believe that the founder of the knowledge learned from the failure of the case than from the success of the case to learn more, so the failure of start-up companies can improve the probability of success of investors next investment. However, investors do expect entrepreneurs to understand the common mistakes, instead of repeating them.
, as an active angel investor and venture company consultant, I’ve seen a lot of people will encounter a lot of the same stumbling block. However, repeating the 10 Mistakes mentioned below will not increase your IQ, but on the contrary, it will cost you a lot.
1, think they already know the user’s ideas and needs.
you like a new solution does not mean that your users will like. Make sure you communicate directly with potential customers, industry experts and investors before you spend money.
2, blindly confident that you do not have a real competitor.
normally, no competition means no market, or you don’t have to look closely at the market. If this is a brand new market with fewer competitors, the time and cost of educating potential users may exceed the company’s time and budget. Less risk for innovation in the face of fewer competitors.
3, trying to solve all the problems in the world with a solution.
startups need to focus on doing a good job, or a lot of things may not be able to handle. Will you show the new technology to all people, and tell them the potential use of all is a very tempting, but also there will be risks: let the user feel confused, let them wait for you to describe future solutions or the use of poor let them disappointed.
4, overestimate the company’s revenue growth.
because the company needs internal development, recruitment, training, brand building and customer support, the company’s business needs to take time to expand the scale of each, penetrate the market. The first five years of the company’s earnings will be more than 10% will rarely happen, this forecast may also make you and your investors disappointed.
5, that there is no need to register any intellectual property rights.
some entrepreneurs believe that the market share of the first will keep them ahead of other competitors. They forget that a lot of big companies have a lot of resources, and when they see a business opportunity, they wake up and steal your market share. You need to use patents and trademarks as barriers to entry.
6, count on friends