No startup is perfect. We’ve all made our share of mistakes. However, wise entrepreneurs learn from the blunders of others. Those who have come before have paid our tuition at the school of hard knocks. Let’s learn from them.
Here are three common mistakes I see time and time again that, if proactively mitigated, will save you from unnecessary speed bumps and issues:
Asking for money too soon
I’m a big believer in the lean startup methodology — treating nickels like manhole covers. This practice has allowed me to get startups pretty far down the road prior to external capital raising.
For example, if you can get your minimum viable product to market without needing to raise capital, do it. Then you’ll have something to show. Nothing pulls on an investor’s heartstrings more than a proven track record of frugality and dollar stretching.
Going at it alone
It isn’t a sign of weakness to admit you need help. In fact, it’s considered foolish to believe you can do it all alone. So surround yourself with the right people.
At the same time, that doesn’t mean you should be rash in building out your crew. Think about the direction and goals of the company and the critical components to getting there. Consider where there are talent gaps and look to strategically add the right folks to plug those holes.
Whether that means full-time staff, strategic partners, a startup accelerator, hiring the right development shop or whoever — building a well-rounded team of like-minded individuals is essential.
Trusting no one or the wrong people
You need to trust people in life. You won’t get far, or be very happy without doing so. It’s the same in business — especially in the startup world.
One of the best ways to gauge trustworthiness is to observe behaviors. People say a lot of things, but their behaviors are worth paying attention to. Keep in mind that people tend to have ulterior motives for disseminating information, so a wise best practice is to deduce trustworthiness from your own firsthand experiences.
Here are some things to consider:
- What are their motivations for doing business with you? Do they believe in you or are they only concerned about dollars and cents? Do they share your enthusiasm and belief in your business or is it only about a paycheck?
- Do they shamelessly discredit others and those they perceive as competition? If so, you’re probably dealing with someone recklessly insecure and too foolish to realize they are showing you how unscrupulous they are. Watch out, because should a relationship with you fail, chances are you will become their next victim.
-
Trust your instincts. If you get a good vibe through your interactions with someone, chances are you’re right. Too often we ignore our gut, and even more often we regret it.
Luke Westerman is the Chairman and CEO of Solomon Global Holdings. Luke is a Wall Street investor turned venture capitalist and entrepreneur. He actively invests in and advises dynamic startups through his companies Solomon Global Holdings and Endeavor Forward.
