StartupTalky

Tag: business mistakes

  • 13 Common Mistakes That Startup Founders Make in Their Business

    ‘Money can solve anything’- this is the first thought that comes to the mind of most of the startup founders. The startup founders live in the biggest myth of life that, once they have funds for the business, their startup will automatically run. This is the biggest lie and one of the common mistakes that startup founders make and that has ruined many great startup plans. The seed funding is the first step in the path of a successful startup, but never assume it as a final destination, because the road is very long after this. Launching a new startup is like a raising baby. After the launch of the startup, comes the biggest responsibility. You need to plan the whole life of your baby and provide everything to them. So just like it, after getting the initial investment, planning and using it properly to boost the startup is important

    When you are beginning with your startups, with all your excitement and passion, the only thing that you want to concentrate on is how to become successful. You do every possible thing to achieve your dreams but being an entrepreneur is not an easy job. One needs to burn their midnight oil for that. While being an entrepreneur, there are mistakes one can make which may disrupt the process of reaching the top.

    Numerous startup founders fail to manage it after the seeding step, as they had utilized their all energy in getting the funding. The startups usually fail because they fail to deliver their promises and fail to manage their team. These are the two major reasons behind the downfall of many startups. However, they are not only mistakes made by the startup founders, there are many other common mistakes that startup founders make in the bucket. I have rounded up a few mistakes that you need to avoid at any cost to be successful. In this article, we will talk about the Common mistakes that Startup Founders make in their businesses.

    Overthinking and Underthinking
    Wrong Investments
    Poor Planning
    Incorrect Estimations
    Decision Making
    Hiring
    Being Organised
    Avoiding Suggestions
    Neglecting Budget
    Marketing
    Confusion
    Forgetting About Bookkeeping
    Unwanted Expenses

    Overthinking and Underthinking

    Thoughts should be big and the start should be small. Overthinking in terms of business may affect the revenue and process of work, plus it doesn’t help you in reaching a conclusion or solution to your problem. Instead, it leads to the creation of problems that are not even there in reality. Decisions should not be risky and should be taken after thinking and evaluating the entire situation properly but too much overthinking can lead to a missed opportunity.

    On the other hand, underthinking any situation is also one of the main causes that may affect the business. One needs to dwell deeper, when there is a need, rational thinking is needed so that effective leadership can be formed.

    “Take time to deliberate, but when the time for action comes, stop thinking and go in” – Napoléon Bonaparte

    Wrong Investments

    In terms of startups and new entrepreneurs, investment is quite a big concern. Be aware of your expenses and savings. Higher Investments in a product without assuming the demand may damage the economy. Investments should be made after analysing the demand for the product.

    Poor Planning

    Everything needs a plan, especially when you are starting a new business, planning becomes mandatory. The plan will guide you through every stage, it is like the GPS that will take you to your ultimate destination. However, wrong planning can create havoc in your dream business. Rough ideas for saving money should not be encouraged, it can cost you your dreams. Pre-planning for saving money should be made keeping the situation in mind be aware of your target audience and concentrate on making products and services according to them.

    Incorrect Estimations

    Estimations of cost should be appropriate. Underestimating the order for developing the business may lead to loss of money and affect the financial state of the company. Thoughts should be appropriate to the situations which include time, surroundings and environment of the market. Always estimate the value higher than that of the original price to keep any sudden expenses in check.

    Decision Making

    While taking decisions entrepreneurs should take care of the situations they face. One wrong decision can lead to the death of your dream startup. The decision should not be risky and made at the right time. Taking risky decisions at the beginning stage should be avoided in order for better growth.

    Hiring

    The hiring of the staff should be less during the initial stages. A huge number of staffs in the starting point with less amount of work will cause a crisis at the time of salaries. Hiring a fulltime staff when a part-time can do the job perfectly is unnecessary.

    “It’s expensive to hire the wrong people. If they leave it’s expensive. If they stay it’s expensive.”― Nathan Mellor

    Being Organised

    Avoid being unorganized. You have to follow a procedure in order to make your startup work. Have your plan and goals sorted in your mind. Jot down on paper your list of priorities in order to stick to the plan. Maintain an organised format for all you want to accomplish. When you begin with a startup, a number of things happen at a time, so listing them according to your priority and then finishing them is the best you could do.

    Avoiding Suggestions

    Don’t avoid suggestions and decisions that people give. Learning from the experts always helps to avoid some loops in the field of A particular business. a person with experience can definitely be of your help if you decide to listen to them. The words of the peers should be paid heed to.

    Neglecting Budget

    Maintaining the budget should not be neglected. Planning on the budget in order to avoid spending extravagantly is required. The budget should be maintained for growth and development. Budget planning should be made locally so that it helps us to maintain the economic growth of the business. High budget tenders should not be encouraged.

    Marketing

    Marketing of the business should not be neglected, it is one of the most important factors for the survival of your startup. It should be clear and sharp so that it reaches the target audience. Marketing at the starting stage should not be very elaborate as these marketing conditions affect growth. A proper marketing strategy has to be made so that your business can be visible in front of your customer and they can get attracted to it.

    Confusion

    Avoid confusion in assigning work while maintaining the budget. Confusion may lead to stress which in turn affects progress. Confusion should be avoided in terms of marketing too. It should be straight so that people can get convinced easily. Creating confusion will only be haphazard for the business.

    Forgetting About Bookkeeping

    To utilize the money properly and keep it from wastage, make the required documents and accounting records perfectly. To avoid the common mistakes that startup founders make these points to be noted. Bookkeeping is a major part of a successful business. You need to record all the expenses and incomes accounts to tally the growth of the business. You need to record all the petty and big cash expenses daily.

    Unwanted Expenses

    You do many unwanted expenses in the daily course, which can be easily avoided or can be minimized. So identify those expenses and reduce them to a minimum level. Don’t spend money on the decor of your office to attract customers, as they are here for the product. Don’t hire unwanted employees like receptionists, if you are capable of handling your own business calls and making your own coffee.

    Conclusion

    Startup founders make many mistakes after getting the seeding. While building a business, mistakes need to be avoided. Although mistakes are a part of our life and they are inevitable, it is important to avoid these mistakes that will do nothing but lead to problems in your business. Even when you make mistakes, learn from them and try to not repeat them.

    FAQs

    What causes startups to fail?

    Most startups fail due to insufficient financial resources.

    What percentage of startups fail?

    90% of startups fail in the first 5 years of the company in India.

  • Common Mistakes to Avoid while Creating Advertising Campaigns (With Examples)

    Ad Campaigns are a great way to communicate with your consumers and spread a positive message about your brand. But not all ad campaigns are successful you need to make sure you convey the right message. If you are planning to create an ad campaign here are few mistakes you should avoid.

    An ad campaign can do wonders if the idea is well executed.

    What is an Ad Campaign?
    Why are Ad Campaigns created?
    Mistakes to avoid while creating an Ad Campaign
    Example of Failed Ad Campaigns
    FAQ

    What is an Ad Campaign?

    An Ad Campaign is generally made to send across a message revolving around a constant theme. These campaigns have a specified duration following questions like:

    • When will it air? And for how long?
    • Is it supposed to be a television commercial?

    The campaigns are tweaked a little accordingly to fit the mediums that are being used. These campaigns are not limited to only a single medium. Mediums like social media, hoardings, newspapers, emails, etc. Can be used, a campaign could also be a series.

    Why are Ad Campaigns created?

    • To inform the audience about a new/existing product or a brand in the market.
    • To stay connected to the audience.
    • To communicate a message or bring awareness among the consumers about a certain thing.

    The mediums are chosen based on the objective and the message that a brand is trying to communicate. For example, your brand might have completed 75 years since it was established. So, to celebrate/inform the consumers about it, you create a campaign that delivers the message.

    Mistakes Done By Entrepreneurs Which New Entrepreneurs Need To Avoid
    There are some common and avoidable start-up mistakes which entrepreneurs do. So, let us see the tips on business mistakes to avoid or startup mistakes to avoid.
    StartupTalkyYash Gupta

    Mistakes to avoid while creating an Ad Campaign

    Stick to the Time

    Media scheduling is important, but along with considering your current theme and the current situation. As the tweets came from Zomato on Twitter, that clarified that the ad campaign that was made back six months ago is bizarre.


    Make the Plan Flexible

    Zomato did not consider for once that once its TVC (television commercial) series would be out, how would people react? All the damage could have been avoided if simply they had a backup plan or would have bent their idea around something else.

    Considering the audience was already engaged in a conversation around the treatment of the delivery workers of Zomato and other food delivery apps on various social media platforms.

    Encoding and Decoding of the message

    We often forget this, especially when we are making ad campaigns these days. Your brand needs to be super careful. Back in the days when ad campaigns were created, people would maybe talk about it. But now with social media platforms, the audience has the power to give feedback. Communication is a two-way process.

    While there are anonymous handles emerging on social media. Not wanting to reveal their identity but to bring attention to the issue of long work hours and low wages. Bringing it to the notice of how the food delivery staff is being treated.

    Be your own critic, revaluate, learn, and do better

    You should consider a small test marketing exercise before releasing your ad campaigns. Evaluate the campaign with your team, gather data, and analyze it.

    Another part of it came when people also pointed out the money that might have gone into the creation of the Ad campaign. Rather than addressing the real problem here and looking for a solution.

    Study the behavior of your audience:

    • How did they take it?
    • Was the message clear?
    • Does the campaign work?
    • Do you need some changes?
    • Is research needed?
    • Can you improve?
    • Is there more that you can do?
    • Is there space to grow?

    See if it could be misinterpreted? Or could send out a wrong message to the audience.

    Remember, marketing plans should always be flexible as the only constant in society is change. One is dealing with human emotions, competing with other markets, trying to stay on top, and when so much is happening mistakes are often made.

    Example of Failed Ad Campaigns

    Zomato’s ‘Har Customer Hai Star’ recent Ad Campaign

    Recently, Zomato’s Ad campaign series with stars like Hrithik Roshan and Katrina Kaif were aired and have received backlash from the masses on social media. The campaign ‘Har Customer Hai Star’ glorifies the delivery boys. With the situation being the delivery personnel delivering his order despite the bad weather in case of Hrithik Roshan. Hrithik addresses him as jadoo and requests for a selfie saying “Ek selfie to banti hai”

    But the personnel leaves anyway, happily without taking the selfie, in the rain, where we later discover the notification that he receives is for another order. With the voice-over following the lines:

    “Hrithik Roshan ho ya aap, apne liye har customer hai star”

    In the case of Katrina Kaif, when the delivery staff gets her the parcel, she asks him to wait while she brings him a piece of her birthday cake. There is the sound of a bell with the notification of another food order that he has to deliver. And the delivery guy goes on outing his duty first, without the cake.

    The one mistake that Zomato made was the mistake of not keeping up with the opinion of the public. And was blamed for diverting the conversation that was going on around social media.

    Remember when Facebook’s rating dropped from 4.0 to 2.6?

    Facebook rating dropped to 2.4
    Facebook rating dropped to 2.4

    This happened on Play Store and it happened quickly as Facebook, the famous social media app, kept flagging and deleting posts, censoring Palestinian accounts who were protesting Israeli military. Its rating also went down on the Apple Store with thousands of one-stars.

    Common mistakes that Startup Founders make in their business
    Numerous startup founders fail to manage it after the seeding step, as they had utilized their all energy in getting the funding. Let us see the complete story on the topic- Common mistakes that Startup Founders make in their business.
    StartupTalkyYash Gupta

    Here is a quick revision of what you can do:

    • Keep your audience in mind while creating an ad campaign.
    • Remember, you can always do better.
    • Make a clear-cut message when thinking. Ask: what is it that you want to deliver?  
    • Test marketing helps.
    • Do your research. Plan and schedule the campaign based on what is going around right now?
    • The key message should not be miscommunicated.
    • Remote communication is a two-way process.
    • Be sensitive.

    Conclusion

    We are living in the age of the 21st century. People on social media are well informed. The youth today talk about politics, gender equality, feminism, revolution, and care about issues that matter to them. Movements are made in a blink to make sure that change is made for good.

    FAQ

    What should be avoided when creating a marketing campaign?

    Make sure your message is clearly conveyed, Be your own critic and do a test run before releasing your ad.

    What are some marketing mistakes?

    Making assumptions, Ignoring customer complaints, Faking popularity, and Ignoring the emotional drivers of choice are some of the common marketing mistakes.

    What is the impact of advertising?

    An ad campaign can create a positive impact on consumers mind that in turn can influence future behavior.