According to South Summit’s “Entrepreneurship Map 2021”, Spanish startups are beginning to exceed 2.7 years of life. However, the average age of Spanish projects is still below that of European projects in general, which are 2.87 years old on average and far from Latin American startups, with 3.23 years of life on average.
For Luis Martín Cabiedes, a Spanish philosopher with a Master’s degree in Business Administration, the 4 most frequent causes of startup failure have to do with jumping to the market prematurely, or the use of poorly calculated metrics. Data collected by Statistic Brain shows that any new company, whether startup or not, has a 25% chance of failure in the first year, and this is likely due to the learning curve: the longer you stay in business , the more you learn and the more you resist difficulties. However, the constant “trial and error” in the early stages can negatively influence the future performance of your startup, bringing legal, tax or personal problems.
That is why it is very important to have the appropriate information and training when developing our business idea and maintaining it over time.
Let’s now look at some of the most common mistakes in this initial phase:
1 Not having enough capital to facilitate the work and constant redesign that our idea may need in the initial phases.
2 Do not invest in talent and technology that is the true value of your Startup in the long term.
3 Focusing on a very small niche that is not scalable or replicable, limiting the future development of our company.
4 Working on several products or for several markets or geographies, which takes time and energy.
5 Failure to make a business plan that allows you to set goals and calculate budgets.
6 Not properly researching the market and launching a non-validated product. Feedback from future customers is very important
7 Do not invest in marketing to make the most of the dissemination of your product / service.
8 Use the resources (money, time, know-how) of the company in which you are currently working for your Startup. In the future it can bring us legal problems.
9 Do not formally incorporate your company even if it is at an early stage until the product / service is perfected. You must protect the intellectual property of your company from the beginning.
10 Start the project alone. Good little teams are the ones that create great companies, not a lone CEO who thinks he’s all powerful.
11 Listen to everyone’s advice, but not the right one. Paying attention to what they do know saves us time and money.
12 Launching the project too quickly can burn the reputation of the product
13 Launching the product too late can detract from novelty or interest.
14 Create a product or service that does not solve any problem. If our idea does not cover a need, we are not generating value, and therefore we will not generate sales.
15 Problems in the founding team. The members of the project must be aligned with the objective we seek and in the way to reach it.
Entrepreneurship through a startup is difficult, but not impossible. Most mistakes are avoidable. You just have to keep them in mind, manage to recognize them in our day to day life, and act in time to correct them.
Impulsa Ventures is the site that can help you develop your idea quickly and smoothly thanks to comprehensive advice, so that you can start in the world of startups with a safe and firm step. We will wait for you!
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