Despite the more intense challenges in business, entrepreneurs are still motivated to grow their business. Growing startup company is not an easy task, of course. It is common to see startups unable to survive the tight competition. Many entrepreneurs focus only on finding customers and getting financial support while overlooking some important aspects of the business.
Most Common Mistakes in Growing Startup
Do you see that your business is reaching a plateau? The following things may result in problems in growing startup companies:
Every business is looking for product-market fit. However, it is a big mistake if you stop at the point. Product-marketing fit means that a startup builds a loyal customer base for the products or services being offered. You may see streams of income from the products you are selling. The customers may love them.
The problem is that many entrepreneurs are ‘satisfied’ with the condition and stop expanding the market. Do not feel satisfy with a product-market fit. Find and build a larger fit. You can experiment with different advertising platforms, such as video marketing or social media marketing. See how different marketing platforms perform for different customer segments.
Startup companies are commonly faced with financial problems. When the issue appears, the solution is commonly to trim down the structure. Unfortunately, many entrepreneurs choose marketing and advertising department as the first target. Is this the right solution? Of course, NOT.
Marketing and advertising department plays an important role is it draws people to your brand. If you eliminate the department, your business misses the diet it needs to grow. Instead, you can begin trimming down the process. Identify parts of the practices with the least contribution for the company. You can join them with the relevant division. Therefore, you do not need to modify the structure dramatically.
In addition to trimming down the process, you can trim down the team sizes. Team that is not essential anymore for growing startup businesses can be dispersed. Then, build a new success road map for teams that stay. This will be a better decision than eliminating a department in the company.
Focus Only on Funding
As mentioned above, funding is certainly important for a business, but focusing only on funding is a fatal mistake for a startup. Many entrepreneurs target that the business will be acquired one day in the future. The problem is that many of them fail to build the right systems. In fact, building the right system is more important than simply finding financial support.
Lack of Balance
A balanced team is essential in growing startup companies. Of course, it is not easy to build a balanced team. The entrepreneurs need to understand characters of the employees in a comprehensive way. Different employee groups may expect different systems in place. If the company has a target to be successful, the team needs to prioritize balance between personal and professional life. This is particularly true when you work with millennial.
Overall, there are four main reasons why growing startup companies become a challenge. They may sound easy, but the practice is very difficult. With spirits and commitment, you can actually avoiding common mistakes in building a group.