How your startup can tumble down

Your start up should have an online presence to succeed now that everything is online. FILE PHOTO

What you need to know:

  • Sure you’re excited to be building your own company, but are you paying attention to budgeting, your online presence and what the competition is up to?

So, you have finally done it: You’ve raised some capital, maybe even attracted some investors and started to build up a team for your dream company.
You have always had an entrepreneurial way of looking at the world, and now it is finally time to apply that mindset to building your own company.
But despite your drive, and how much you care about your company, you are not doing as well as you thought you would. You have hit a few roadblocks on the way to success, and you’re not entirely sure how to handle them.
Still, the fact is, many companies face these problems. And there are eight habits preventing you -- and them -- from building a successful company. If you know what they are, you’ll be well on your way to changing things around.

Lack of planning
Especially for companies just starting out, not planning enough can be one of an entrepreneur’s biggest problems. However good your idea or service is, if you have not thoroughly planned out in advance aspects like who your ideal customer is, how much money you plan to spend month to month and what your short and long-term goals are, you’ll struggle more and more as your company grows.
While it’s exciting to get started, creating a business plan is the first thing you’ll want to do.

Underutilising technology
Even though investing in technology can seem like an expenditure you can do without, in the long run, you’ll hurt your company if you don’t. The right technologies -- whether that might be an accounting app or a subscription to a site that helps you get all the right legal documents and sign them online -- can save you not only time, but money, too.
And, oftentimes, if you find a technology you can’t afford, there are alternatives out there you can use for free. If you consider yourself more of an old-fashioned entrepreneur, it’s time to change things up and take advantage of the technologies that can really help you.

Marketing to wrong customer
One of the biggest mistakes new companies make is not marketing right. That could mean identifying the wrong customer base, or advertising in the wrong places or designing a site that turns off users.

Overspending
While it’s worthwhile to spend money where it counts, it can be easy to get carried away and spend too much. Especially in the beginning of your company’s development, you will want to throw money at new problems that come your way. But it’s important to budget correctly; otherwise you may spend more money than you have, and not have enough for the future.

Underspending
On the other side of the coin, you may not be spending enough. Sometimes, you want to hold on to money for later that you should be spending now -- for example, on very necessary market research, which will quickly generate more revenue for you, or hiring someone for your team who can handle important aspects such as fund-raising.

Lack of an online presence
Just as it is important to market your company to the right audience, you will also benefit greatly from having a strong online presence. However perfect your product, if your website is too text-heavy and hard to navigate, or if you are not spreading your content across the right social media platforms, such as Facebook or Instagram, no one is going to know about your product.

Failure to delegate
One of the worst habits you can have is relying only on yourself when it comes to running your company. When it’s your own dream coming true, your own concept, it is easy to want to control all aspects, from financing, fundraising and content creation, to marketing and social media.