Many Startups fold up yearly putting thier hopes on at least these three misconceptions. If you are a startup, you are likely to be equally as guilty of these erroneous beliefs.
YOU ARE WAITING FOR AN INVESTORS
I am sorry but you are not likely to get an investor until after a year into your business – and that’s if you are being “consistently impressive”. All startups wish to get needed financial lift from investors to grow their businesses to the desired level but not many can be as consistently impressive as potential investors would want them to be before they can put their money in it. The reason is that they do not have the fund to launch big, advertise on popular media and become a household name already; our austerity marketing strategy and business plan is not likely to meet the taste of investors. So, if you are desperately waiting for an investor before you move on to the next stage of your business, you may waste a lot of time waiting and discouragement may set in.
- YOU WANT YOUR BRAND TO BE PERFECT
There is no crime perfecting your brand right from the onset, in fact it is good to get things right from the start of business. But the truth is that no matter how brilliantly you kick start, as your business grows, there would always be need to brand and re-brand. So instead of spending so much money and time getting everything right from the onset, why not start with what your budget can conveniently absorb and perfect your brand as you go.
- YOU SEE ADVERTISEMENT AS A WAY OUT.
Have you heard this saying? “If you don’t advertise your product, no one will ask you what you are selling”. This statement cannot be truer; you need to push your product across to your target market & advertise so they can get to know what service or product you are selling and ultimately patronize you. The problem with advertising at the early stages, though, is that you might be attracting the right people at the wrong time. So, I think you should take time to tidy up and make sure that by the time you would be employing the services of advertising agencies, you would be ready to meet and exceed the needs of your customers.
- YOU WANT PROFIT SOON AFTER LAUNCH
Well, for some kind of businesses it is very possible to start making profit as soon as the launch of business but for most startups, the best that can happen is to ‘break even’ within the first year. Understandably, many of us are so keen about making profit owning to the conditions that have pushed us into the business in the first place – desperation or being broke. And that’s why it is advisable that you have another source of income that enables you to pay your bills so that there isn’t unnecessary pressure on the business.
- YOU DESIRE A VERY A HUGE BRAND ALREADY
So everybody wants their businesses to be the next big thing six months into its launch and that’s totally OK by me. But there is absolutely nothing wrong with starting a business small and growing it into the big picture. Unknown to many startups, many of the big brands we know of today started off very small and it took them years to grow into the big brand they are today. So, take your time and don’t be in a hurry for your startup to be in Forbes’ startup of the year list.