5 best tips to avoid common mistakes during successful startup - Motivate Mania

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Monday, 3 June 2019

5 best tips to avoid common mistakes during successful startup

Want to start a business!!! In the present world, India is the country full of a rapidly growing hub for tech-based startups. According to the Randstad Work monitor survey states that 83% of the workforce is interested in entrepreneurship in India as compared to 53% worldwide. India is rapidly growing as a hub for tech-based startups. Most of the entrepreneur have full of knowledge along with they need to have financial tips which will increase their chance of success in the future. So, here I am going to tell a few quick and easy tips to start a business today.
5-best-tips-to-avoid-common-mistakes during-successful-startup
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Mistake #1 Secure funds
I strongly believe that “Cash is king” that every entrepreneur should take care of it during the period of the startup of a business. It does not matter what is your business model is but the deficient of cash will impact it a lot on the business. As funds are used to pay to suppliers and employees in order to survive the business in the modern world. If you fail to secure your funds then your business will definitely shut down at last. When you start a business, you have a negative cash flow to secure the funds from investors but when your business is not earning enough cash then your investors will become hyper and left your business.

It is important for every entrepreneur to secure finance for the business. Usually, an entrepreneur invests their own funds in order to scale their business. In order to expand the business, the entrepreneurs need to finance the funds from the external sources. It may include debt fund or equity funds; both can include which have their pros and cons. However, the entrepreneurs need to take expert advice before choosing the way of choosing funds either debt or equity funds.

Mistake #2 Value Time
There is also an old saying that “Time is Money”. This is the most important advice that every entrepreneur should remember it by heart. This will help you to find assess the value whether it is worth pursuing or not. In this way, you can take the maximum advantages of your time by taking the right decision at the right time in the dynamic world.

While an entrepreneur starts a business to create a world, so it is very important to recognize your role in the business as you are an investor and full-time CEO of the company. Firstly, you should know the value of yourselves that you have generated by working as a CEO by paying the amount to yourself. This will help you to decide the remuneration of CEO hired for your company. In this way, you will able to focus on the essential things which will lead to the growth of your business.

Mistake #3   Track inflow and outflow
During the initial period of starting of business, an entrepreneur should keep track of inflow and outflow of funds. You should keep the track until it will become consistent for your company. In this way, you can keep track of the expanding and revenues of your company and help you to maintain the balance between the expenses and revenues. An intelligent investment entrepreneur will build software regarding accounting in order to maintain the funds.

It is common for startups that they spend more in order to grow their business in the short run. But this practice is very dangerous in terms of the long run. This will lead to having insufficient funds available in the business. So, you need to check the track of outflow and inflow of funds from time to time.
    Mistake #4 Diversify wealth 
It is saying that the person has 5 sources of generating wealth. As new entrepreneurs are ready to face even the worse challenges like a failure. It is estimated that 90% of the business is failed in the initial period of 5 years. But that is not true in India. Here, the business fails due to financial crises.

As I mentioned above that the entrepreneurs should diversify their wealth in order to protect the business from financial crises. You can diversify your wealth by investing in the shares or bonds. But these investments are as per market risks. You need to take help from the financial advisor regarding the investments.

    Mistake #5 Set goals
Last but not least, this is the most important as the chance of success depends on it. As we Indians love to watch cricket not just to see that our favorite player is playing but for the target that the team will able to achieve it or not. We only have an interest in this. Sorry to say you that if you remove the target of it, then your favorite playing is playing then you may find a little boring then earlier.

But the point is that you should also set financial goals with fix deadline. If you are able to achieve it then reward yourself otherwise set punishment if you are not able to achieve it. In this way, it will help you to take actions on time as well as you can achieve your goals on time.

In a nutshell, I have discussed the 5 best tips to avoid common mistakes during successful startup so that you can avoid common mistakes during the initial period of startups of your business.  In this way, you can able to avoid common mistakes when you want to start a business. At last, it will not only help you to measure the milestones of your success of the business but also you can avoid the common mistakes of the initial period of starting off a business.

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