Despite the odds stacked against the success of startups, the allure of the occasional startup success story keeps inspiring other entrepreneurs to try their hands at a high growth business venture. We’ve put together a list of five actions startups should never take in order to have the best odds at having success.

 

Settle for Less Than A Players – There’s a reason why startups tend to have high turnover rates in their first few years. With limited resources, the need for talented employees is crucial to a startup’s growth and future success. Not only must an employee be hardworking and dedicated but they must also fit in well with the office culture. Often having few employees and a heavy volume of work, finding employees that bring their passion for the vision of the business is not only important – it’s vital. While there may be many skilled candidates, the most promising candidates will be genuinely enthusiastic about the startup’s future and not just landing a new job.

 

Buy More Than You Can Afford - While it can be tempting to think that your startup needs brand new computers, fancy ergonomic chairs, or modern decorations to function, it probably doesn’t need any of that. In fact, your startup should be focusing on what it’s supposed to be doing first and foremost – growing! Most startups have humble beginnings, launching from home basements, apartment buildings with limited resources and money. If you absolutely don’t need something in order to make your business function on a daily basis, you can most likely put off purchasing it for now – or buy a used version.

 

Give Into The Hype – Repeat after us. Press does not equal success. While it may be hard to remember this, the success of marketing of a product does not equate the actual quality of the product itself. In 2010, the initial launch followed by a year of slow growth of Pinterest was less than impressive. However, without the distraction of the media, Pinterest was able to quietly refine the popular site to what it is today (Inc.com).

 

Before considering who will or won’t write about your product or how much “buzz” your startup is generating, concentrate on the actual functionality of the product/service you are creating. Simply start seeing that lack of “buzz” around your startup as time to refine your processes, your product and design. Concentrate on what will bring you revenue, not press.

 

Give Away Equity Without Getting Something Back – There’s only one reason to even think about giving away equity of your business to someone else. You give equity when what you will have left of your company will be worth more than the whole company was before (PaulGraham.com). Giving away equity should ultimately be a move to add value or smart money to your startup, not to leave it less than it was before. Anyone given equity should have a long-term investment and relationship with the company, which is why the thought of paying employees in equity is never a good idea. The more equity you freely give away, the less control you’ll eventually have over the direction of the business.

 

Chase After Investors – If you find that you’re spending more time chasing after investors to fund your startup rather than actually working, it might be time to re-evaluate why you began your startup in the first place. Instead of looking for angel investors spend your time actually making your own money first. Even when investors start approaching you, it doesn’t mean that it’s the wisest decision and direction for your business. It’s always best to hold off as long as possible before even considering accepting investors.

 

Ola Ayeni is the founder of Dining Dialog and eateria.co, a digital loyalty marketing company for restaurants and food service businesses. Dining Dialog is a cutting edge, full service new media marketing company servicing the restaurant, bar and food service industry. eateria™  is a digital loyalty marketing tool that will empower our clients and help them build their customer base by generating repeat business and attracting new business. www.myeateria.com | Find us on Twitter - @eateriadotco| Check out more of Ayeni’s blogging.

 

Views: 277

Comment

You need to be a member of FohBoh to add comments!

Join FohBoh

Advertisments

 

DEPARTMENTS

Social Wine Club for Craft Wineries

Smartbrief

Eateries turn to rationing as lime prices soar

Unrest caused by Mexico's drug cartels, along with floods in Mexico and a drought in California, are taking a toll on this ye -More

25% Usage Reduction, Guaranteed!
Reduce waste and cut cost. Impress your customers and express your brand. Every single Tork Xpressnap napkin dispenser performs double-duty for your business. Find out more about our 25% usage reduction guarantee or get a free trial.

Burger King to upgrade wireless with Whopper Wi-Fi

Burger King has teamed with AT&T to replace existing in-store wireless Internet with an upgraded system dubbed Whopper Wi-Fi  -More

Late-night indulgence pays off for Jack in the Box

Jack in the Box saw its profits rise sharply in the first quarter, a few months after introducing its $6 Munchie Meal menu of -More

JOBS & CAREERS

Posting a job or finding a job starts here at FohBoh. Call us about special $25 posting packages to syndicate across all major jobs boards.

National News

Wahlburgers Announces Expansion Plans Including Franchise Agreement in Philadelphia

Wahlburgers has signed a franchise agreement with Hingham Associates, LLC that will bring five Wahlburgers to the metropolitan Philadelphia area over the next several years. The franchise group is actively looking at sites and is targeting a late 2014-early 2015 opening for its first restaurant.

Chipotle Mexican Grill, Inc. First Quarter 2014 Revenue Up 24.4%

Comparable restaurant sales increased 13.4% - Restaurant level operating margin was 25.9%, a decrease of 40 basis points

Jamba Juice Announces Grand Opening of New St. Louis, MO Location

Jamba Juice Company announced the brand’s continued expansion in the St. Louis market with the opening of a Jamba Juice® store at 11477 Olive Blvd. on April 16, 2014.

Expert in Real Estate Analytics Joins Luna Grill

Luna Grill, the San Diego-based Mediterranean restaurant chain, is welcoming retail real estate industry veteran Greg Thorburn to its leadership team. Thorburn has been brought on board to fill the newly created position of Vice-President of Real Estate.

Rita's Italian Ice Awards Area Development Agreement for Kansas

Rita's Italian Ice has awarded franchise and area development agreements for Kansas and the Kansas City area, which extends to the Missouri side of the city, to franchisees and local residents Jay Miller, Jeff Miller and Pat Reilly.

CROWD FUNDING

If you are looking for capital to start or grow your restaurant, create the next 501c3, develop and launch the next app for the restaurant industry,or want to help your peers in some meaningful way, we want to know about it.

TED TALKS VIDEO

TED: Jeremy Kasdin: The flower-shaped starshade that might help us detect Earth-like planets - Jeremy Kasdin (2014)

Astronomers believe that every star in the galaxy has a planet, one fifth of which might harbor life. Only we haven't seen any of them -- yet. Jeremy Kasdin and his team are looking to change that with the design and engineering of an extraordinary piece of equipment: a flower petal-shaped "starshade" that allows a telescope to photograph planets from 50,000 kilometers away. It is, he says, the "coolest possible science."

TED: Norman Spack: How I help transgender teens become who they want to be - Norman Spack (2013)

Puberty is an awkward time for just about everybody, but for transgender teens it can be a nightmare, as they grow overnight into bodies they aren't comfortable with. In a heartfelt talk, endocrinologist Norman Spack tells a personal story of how he became one of the few doctors in the US to treat minors with hormone replacement therapy. By staving off the effects of puberty, Spack gives trans teens the time they need. (Filmed at TEDxBeaconStreet.)

TED: Jennifer Senior: For parents, happiness is a very high bar - Jennifer Senior (2014)

The parenting section of the bookstore is overwhelming—it's "a giant, candy-colored monument to our collective panic," as writer Jennifer Senior puts it. Why is parenthood filled with so much anxiety? Because the goal of modern, middle-class parents—to raise happy children—is so elusive. In this honest talk, she offers some kinder and more achievable aims.

TED: David Brooks: Should you live for your résumé ... or your eulogy? - David Brooks (2014)

Within each of us are two selves, suggests David Brooks in this meditative short talk: the self who craves success, who builds a résumé, and the self who seeks connection, community, love -- the values that make for a great eulogy. (Joseph Soloveitchik has called these selves "Adam I" and "Adam II.") Brooks asks: Can we balance these two selves?

© 2014   Created by FohBoh.

Badges  |  Report an Issue  |  Terms of Service