Before you invest your life savings in a game-changing start up study both start up successes and mistakes. Start ups which flopped quickly can give you great insight into what not to do when bootstrapping your fledging company.
Partying Frequently
You know that launching your start up is a stressful but fruitful experience which comes with fun trappings. Partying hard at networking events is one benefit of launching a successful start up. You are king or queen of your enterprise and want to let off some steam while making valued connections. This is well and good but partying too much can cloud your vision and diminish your efficiency.
Quit partying like a rock star. Get back in the boardroom!
Partnering with Multiple Co Founders
Diminishing your company share can hurt you in multiple ways. If you start up with 3 other founders you have just 25% of the of the company before hitting the fund raising circuit. Starting with 3, 4 or more founders also confuses potential investors. Who will be the face of the business? Although Mark Zuckerburg built a team to grow Facebook he was always the undeniable face of the social networking site. Do a start up on your own or if you want to partner with a friend use that approach to avoid confusion and mismanagement.
Lone Wolf Syndrome
You cannot launch a start up on your own. Too many moving cogs will overwhelm even the most driven entrepreneur because you lack the skills to effectively embrace the stunning workload you will face.
Starting off with a team helps you to hand off tasks to skilled people. No one is adept at all the skills needed to launch your business. Working with others can also reduce your stress levels. Tap into the concept of teamwork, save yourself time and energy and being your startup with a community of like-minded folks.
Raising too Much Capital at an Early Stage
Watching your cash flow dissipate can be a terrifying experience. Most start up founders eat through their life savings quickly to fuel their vision. Bootstrapping however is the best approach for raising cash because receiving too much start up funding influences founders to spend too freely. Raising too much capital at an early stage also puts you on the hot seat. Investors with a vested interest in your company may fire you quickly if they are not self-sustaining and can’t secure better terms to your investors.
Grabbing for Press Too Early
Check your motivators before you gain too much press too soon. Why do you need to be highlighted before you made it big? Getting an infusion of popularity from a well-time, early interview can give your company a boost but being overexposed before the company proves itself can be the kiss of death.
Study start ups which got too much press before they crashed and burned within months or a year. Most founders with a substandard product or lack of confidence grab for press too early in their careers. Focus on your business model and serve customers to attract press naturally.
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