4 Obvious Mistakes Startup Entrepreneurs Make

By Brian Zeng

A new page in the book of life has begun for you. You're living, sleeping, and dreaming your startup. You are on a hiring spree, meeting new clients, and getting lots of recognition for your new company.

But somewhere down the line you realize, it’s not working. Your efforts are no longer paying off. Competition is increasing and prospective clients are decreasing. What started off so well is suddenly getting tougher to do and is full of problems.

What could be going wrong? A million things, really. You need to find out and fix any problems before it's too late. Here are the most obvious and overlooked mistakes that startup founders make:

Mistake#1: Keeping Everything in Perfect Balance

Though it may seem counterintuitive, chaos and disharmony can be powerful growth propellers. When entrepreneurs try to have perfectly functioning systems right after starting their companies, it can cause problems. Systems should be established after years of interacting with clients, consumers, suppliers, and others involved with the company. Setting up rigid systems in the early stages of the business will end up blocking productivity.

Instead of creating systems, innovate constantly. Be flexible and don't be afraid to do things like trying out new technologies or targeting new customers. Let some madness and mayhem prevail; this can lead to business innovation and success.

Mistake#2: Not Communicating Enough

It is very easy to get lost in the virtual world of Twitter, Facebook, LinkedIn, sharing, posting, liking, and SEO. While it's important for your business to have a social media presence, many entrepreneurs today make the mistake of only focusing on an online presence.

No matter how powerful the Web gets, actual face-to-face communication, networking, and meeting with clients and other entrepreneurs should not be avoided. Your company's growth is dependent on your business relationships, and nothing establishes a connection better than a long chat over a cup of coffee. Good communication is one of the key tenets of running a successful, growing business.

Mistake#3: Ignoring the Aesthetics

Selling a great product is not good enough; you also need to present it well. Visual stimulation is powerful, and customers engage with people, things, and brands, that are visually appealing. Pay attention to your product packaging, hire the best web designers for your new website, and if you have a retail store, avoid clutter.

Also, aim to look presentable at all times. Many of us think it’s okay to look tired and sloppy in front of our clients--what counts, after all, is the work. Not true. You are the first impression of your work. Chuck the uncombed hair, ultra-loose t-shirts and baggy pants; invest in professional clothing. Send the message that you are an individual who cares. Most people believe that someone who looks after themselves will also do the same in their business.

Mistake#4: Messing Up the Finances

Being frugal in your new business is the way to go. And if you can bootstrap your business, this often brings out the highest degree of creativity and resource efficiency in an entrepreneur.

However, once the business starts expanding, you may need to bring in investors. Select your investors and financial partners very carefully. Realize one thing early on: the moment you rope in external investors, a part of your business becomes theirs.

Keeping your investors informed and happy is very important. Call them regularly and always keep them in the loop. Listen to their opinions and preferences regarding any expansion plans for your company. Find out their areas of strength, and tap and utilize their expertise. In the end, they will ensure your business's finances stay stable.

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