If you want to start a proper business, one that will remain profitable after the first 5years, that will make it to the top, then these do’s and don’ts you are a must-know before hitting the startup road. Startup can be very fragile but if you get the rules right the chances of your startup not making it is nonexistent.
Don’t try to keep your idea a secret: You need to talk to people about your idea. That is how to be sure if it is an actual good idea.
Do make mistakes: Most of the things you will do in a startup is going to be trial and error. Mistakes are made so that we are able to learn the right thing to do. Do make the mistake. That is how you know what to do and what not to do.
Don’t repeat mistakes: If things aren’t working out, change your direction. In as much as Mistakes are essential, failure to learn from them will just result in poor business. Things don’t miraculously change you have to make calculated decisions based on what you learnt from the mistake you made. That is how you learn to do thighs right.
Do choose investors wisely: in the early stage of your business when cash flow isn’t so great, you can get investors to help you get your business off the ground. But don’t just pick anyone as an investor. Do your homework, find a reliable and trustworthy investor.
Don’t Take the first offer that you get: when an offer sounds too good to be true, then it probably is. Think long and hard before you entrust significant part of your company to an investor. Take time to weight your options. Be objective in choosing an investor. Conduct a background checks. Make sure investors are trustworthy, and their offers are a legitimate and reasonable one you can work with.
Do be frugal: Don’t waste money frivolously. Especially when money is tight, evaluate each purchase, make sure it is necessary before you make them. Ask yourself if it will help you grow. If not, save it.
Don’t avoid necessary costs: Make sure to invest where it matters. Make this analysis; that particular resources may be an upfront cost now, but might save you time and money in the future.
Do talk to your customers as often as you can: know that if what you are doing isn’t in the interest of the customer, at the end of the day, it is all for nothing. Your customers are the key factor to your success. You need to talk to them often! They are the ones buying or using your product/service Find out what their likes and dislikes are. That is the one of best way you will know if what you are doing is right or wrong.
Don’t break your promises or obligations: As a startup, all you have is your word. You have just started building up your reputation. That means if you go back on your word it will be hard to gain the respect and trust of customers. You don’t want to get a reputation that you break your word often. So be careful!
Don’t start a business without putting in place all the solid legal basis and all legal contracts required: if you have a business partner even if it’s you and your best friend starting a business, make sure to get a founders agreement to state what happens to all the intellectual property and equity.