Taking the plunge into the world of entrepreneurship can seem overwhelming, and at times, it is.
Many founders of tech startups are the technical brains behind a revolutionary new product or service that, in some cases, are first-to-market. However, there is often a learning curve to understand the business acumen required to establish a new market or penetrate an existing one; the aspects of finance, operations, sales and hiring are unfamiliar territory.
Fortunately, there are many seasoned entrepreneurs that have gone through the experience first-hand and are willing to advise startups on how to build a success-driven leadership team and establish a brand. Whether or not a new entrepreneur has easy access to such individuals or accelerator and incubator resources, it’s important to prioritize finding a reliable mentor group and partners to help navigate the challenging waters. For those in the process of launching and gaining momentum for a tech startup, here are six common mistakes to avoid.
1. Underestimating capital requirements.
Most entrepreneurs think they can get further with less. In an effort to minimize equity dilution, they forget to factor in unknowns, challenges or delays along the way. Startup leaders tend to plan for the best-case scenario — assuming that the launch of a product will be rapidly followed by an influx of POCs and orders or expecting that a round of funding will close at the originally scheduled time. This mentality can be attributed to leaders’ excited energy and positivity. While positivity has its place, when it comes to