In the startup culture that of today that encourages newer ideas and execution, starting a business can be an exciting decision. But then comes the reality: There’s a big difference between starting and growing a business. The latter is much more challenging – and that’s what many entrepreneurs struggle with. In that context, here are three mistakes startups make that hinder their growth:
1. Hiring the wrong people
A company will be only as good as the people working there. Sadly, so many startups have a flawed recruitment process. They focus more on the person’s CTC over talent and pros they bring to the table. They focus on the wrong and outdated metrics and factors when hiring someone. Don’t be one of them! Improve your recruitment process. For the starters, hire a reliable recruiter who has experience of working in your industry. And then set your priorities correct as to what kind of person you want to add to your team. In short, spend more time in this department and be more careful of who you bring on board.
2. Not buying SME business insurance policies
In the business world, you never know where the next lawsuit is coming from. Companies are always exposed to getting sued by third-parties (customers, partner, employee, more). The defense cost against legal claims can be quite expensive. And if you’re indeed found at fault, the compensation the court may order you to pay can be high, at times even resulting in bankruptcy. So, having relevant liability insurance like small business errors and omissions insurance is not optional; it’s essential. Sadly, many startups undermine this – until they face their first lawsuit. Stay prepared and protected to fight any legal claim. Connect with an insurance broker, establish your needs and risk exposures, and buy SME business insurance policies accordingly.
3. Under-spending on marketing
While many startups are catching up with more focus on marketing and branding, the number of those under-spending in this department remains high. You can have a great product but if people don’t know about it, that product is essentially a waste. The new-age marketing has gotten much smarter and cost-effective. In a relatively small period, with adequate investment in marketing, a company can achieve significant growth. But again, this is only possible when you’re spending enough resources in marketing, which, sadly, many startups refuse to do. Remember, provided you have a good product, the more you spend in contextual marketing online, the more growth opportunities you will discover.
These are three mistakes startups make that hinder their growth. Steer clear of these mistakes and take confident strides to scale your business.
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