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6 Fatal Startup Mistakes What Startup Founders Must Avoid to Keep Their Companies Alive
We interviewed Adeo Ressi, an entrepreneur who has created 9 companies in the last 20 years and who, as Founder and CEO of the Founder Institute, mentors hundreds of first-time startup founders as they grow their own businesses. He shared with us the 6 fatal mistakes that every startup founder should avoid:
1 Selecting the wrong initial team/cofounder Involving the wrong people can lead to ineffectiveness, arguments, stalemates, and power struggles. Add people carefully.
Structuring company, cofounder, and team deals poorly Managing compensation, stock, or options poorly can set the company up for failure. Take care how you create the deals for initial investors. Once it’s done, it's impossible to undo. 2
3 Adopting the wrong technology If you pick unpopular/ unusable technology, your company won’t grow as fast, you’ll have trouble finding good developers, and your product won’t be top-notch.
Selecting a poor business model It's critical to pick a business and revenue model that allows the company to grow and (eventually) become profitable. 4
5 Choosing a weak go-to-market model How your company will acquire customers will make or break your startup. Consider your sales approach, partnerships, and distribution options carefully.
Picking the wrong name Even something like picking the wrong company name can be potentially fatal. Communicate the benefits clearly. Don't be too silly or too difficult to pronounce, type, or remember! 6
In the genesis of a new business, every decision that the founder makes, large or small, can have fatal consequences. So take care with each of these six points raised by Ressi, and seek help during this important time period.
Need More? Check out our infographic checklist on the 22 steps to launching your startup successfully. d ck to rea Cli !
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