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3 Common Mistakes Every Tech Startup Needs to Avoid

21 December, 2016 | By Sakshi Sharma  |   (No Comments) | 18,178 Views


With nearly 20 years in the business, SDI has seen it all – which startups do it right and which don’t, which entrepreneurs have it in the bag, and which entrepreneurs missed their golden opportunity. This extensive experience gives an insight that only a select few development companies have.


In other words, we know how to run a successful startup, from app marketing to website development and even comprehensive custom software development. We know how the world of Tech operates – because we are an integral part of this world. From Silicon Valley, to London, to Melbourne, we’ve helped startups go from dreams to wildly successful realities.


However, we talk on this blog a lot about what entrepreneurs should be doing, so we thought we would change it up. Today we’re going to cover what are some common mistakes Startups make – and how we help our clients avoid them. So without further ado, here are the 3 most dangerous mistakes we see the most often.


But before we start, we should mention that Startups rarely ever fail because of the idea. Enterprise venture fail for a whole variety of reasons, but the idea is just the kernel, a seed that will sprout – as long as it gets the nourishment it needs. So if you have an idea, get in touch with our experts to learn how you can make it a smash success.


The Business Plan


There are several elements that necessarily go into a business plan:


1. The service or product you’re offering;


2. Your target market;


3. How to reach product/service launch;


4. How to scale;


5. And the most important step – how to monetize.


This all sounds pretty basic, but more startups trip up here than anywhere else. Let’s take this a point at a time. First, you may have a great product or service; it may solve a glaring problem; but that doesn’t mean it’s sustainable. In other words, your idea is a business. It’s just the start of one. A business means adding constant and current value, not a stagnant service. It your startup isn’t evolving, it’s dying.


Your Target Market is obviously vital to a successful business, so extensive research into this is absolutely necessary. Who is best served by your product? Who needs your product or service, but doesn’t know it? Many entrepreneurs just try to launch, assuming that the awesomeness of your app, website, or software will just naturally trickle down. It won’t.


Launching your product or service is obviously a critical step and preparing for it is about more than just being aware of your resources. At SDI, we have a whole checklist of prelaunch steps that have almost nothing to do with the actual coding or programming itself. Everything from using beta testing groups to intrigue key influencers to generating a social media buzz to get people excited about your startup


Scaling goes all the way back to our first point on adding constant value to your startup. We pretty much covered this, so we will only lightly touch on it. But basically it’s essential to know how you can improve and add value to your product or service from the get-go. So when you write your business plan, make your growth goals clear.


How you will reach Monetization is another thing that you need to know from the beginning. There are a variety of different options startups can use to reach monetization, often changing depending upon which platform your startup operates (app, website, custom software, or any combination of the three).


Common Mistake #2: Thinking You Know Best


Often the temptation many entrepreneurs and Startup founders face is to ignore data, or not realizing that their startup succeeds only when users start, well, using the product or service. Occasionally, we see clients who think that they know best; after all, look at what they’ve accomplished by following their own counsel, or by their own grit.


And that’s very true – a startup gets no where without a strong leader at the helm. But here’s a piece of advice for free: it’s not about you. I’m going to say that again, in a different font so you really get the point: it’s not about you. If you want a successful startup, you need to:


A. Think about the what the best value your startup provides to your end customer’s perspective. What is the best feature to the user, not to you. Sure your app has some of the best written code out there – but the average user couldn’t care less. Seriously. They care that it performs quickly flawlessly and it meets their needs.


B. Trust the data. Spend the money to have good data analytics (including Artificial Intelligence for Smart Business Management) that give you full control over your business – and then trust that data!!!


Common Mistake #3: Trying to do it all


This is heavily related to mistake #2 but delegating is a big, big problem. You need to learn to delegate. Startup Founders especially have a hard time with this one. Again, they’ve reached where they are in their lives because of their own skill and determination.


It’s that whole saying “if you want something done right, do it yourself.” But you don’t know everything in the world, and you simply can’t master every aspect of your business. Plus you hired your people, so trust yourself to have chosen wisely. Learn to delegate and to recognize when you’re out of your depth is key to succeeding in this world.


Delegating include knowing when to hire outside help for your development and Marketing needs. SDI is the team you want on your side, saving you money without requiring you to employ a full-time development team. Think about it: Development doesn’t have to be an ongoing expense. By hiring SDI, you get 200+ programmers with extensive coding experience and superior skills. By hiring SDI, you get experience when you need it, and burning through your budget with a full time staff that isn’t needed.


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