5 Common Mistakes Tech Startups Should Avoid at All Costs

It has been said that most entrepreneurs think they’re building the next big thing when in reality, over 90% of them fail.

This is a harsh and pessimistic statement. 

Well, that might be the case for some, but not for you if you avoid making the following mistakes. 

1. Making A Solution to A Nonexistent Problem

An entrepreneur should spot a problem from customers and not use their imagination to create a problem and then fit a solution to it. Instead, think about a group of people who might have a problem, e.g. Millenials having a tough time saving money. Then talk to them, understand the problem, and consider a solution to it e.g. a sanction every time the person withdraws from their savings. 

2. Not knowing the Ideal Customer

Another mistake to avoid is not knowing the ideal customer. You need to know the ideal customer, or target audience in order to better cater for them and be successful.

3. Launching too Late

Oftentimes entrepreneurs want everything about the app to be just right and absolutely perfect. Yes, your app should be good, it should be the best it can be, but it doesn’t have to be perfect at the time of launch. “Done is better than perfect” is a saying that applies in this situation.

This is based on a concept known as a Minimal Viable Product (MVP). It says that to minimise waste of time and resources, customer feedback from early customers is necessary to make the product a perfect fit for the market.

4. Not Having a Clear Business Model

“Startups don’t fail because they lack a product; they fail because they lack customers and a profitable business model.” — Steve Blank, author of the four steps to the epiphany.

This is to say that, the most important indicator of your startup’s success is your revenue or potential revenue. If you are not clear about how revenue will be generated, you will not only have a very hard time pitching your business to investors but also at later stages you might not be able to come up with a business model.

5. Being Impatient

“Rome was not built in a day”. Neither will your project be. Many entrepreneurs make the mistake of being impatient with a lack of results and this can bring burnout and anxiety. As much as you should strive for every success, know that it won’t happen at lightning speed.

So there you have it, 5 mistakes every tech startup must avoid!

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