8 Things Every Startup Should Consider – Reddy Kancharla

Every startup is different, and each has its own unique set of challenges. However, there are eight things that hurt every startup in one way or another. Let’s take a look at some tactics that can help you avoid these pain points, according to insiders like Reddy Kancharla:

1. Not doing enough customer development

Many founders believe they can get their product right by hiring talented employees and launching a great product. However, there is no way to determine if your product will solve a real problem for customers without talking to them and learning about their needs.

2. Product complexity

When you first launch a product, it’s easy to add features because they don’t take much time or effort, but as the number of features grows, not only does the product become complex, but navigating it also becomes difficult leading to poor user experience. Many startups fail because they can’t figure out how to simplify their products at the right time.

3. Not having a discernible USP (Unique Selling Proposition) / Differentiation from competition

The biggest mistake that most founders make is that they believe that what they’re offering already exists in some form in the market. This leads them to think that there is no need for differentiation, and they end up having a me-too product and strategy.

4. Wrong Pricing Structure

Pricing your product correctly is extremely critical, and often the business goes for one of two pricing strategies: either too low or too high – making it either unsustainable or uncompetitive in the market. Founders need to understand their customer’s price sensitivity and how competitors are priced before finalizing on a price point.

5. Loss of focus/Poor execution

It’s very easy for founders to get distracted by shiny objects or let their team take control of day-to-day decisions. It takes discipline to stay focused until you achieve success post which distractions become easier to manage. Along the way, you need all hands on deck to ensure that the company’s daily operations run smoothly.

6. No Scalability Plan

In case your product is a success, then there comes a time when you have to put in place a scalable business model and process that will address the growing number of customers coming in. Founders who don’t do this lose out because they can no longer handle the volume of customers by themselves and if they hire new employees, it would require a lot of effort for onboarding.

7. Not being able to raise enough capital

This causes most startups to give up even before they get started. Of course, raising money is hard, but founders must keep trying until they succeed at raising funds from investors who believe in their vision. Having a prototype helps you show the viability of your product, but revenue proves sustainable-ability.

8. Poor hiring strategy

Hiring can make or break your business, and founders often make these mistakes when they hire the first few employees: Not having proper job descriptions, either not interviewing enough people for each key role, or hiring people who are only capable of doing limited tasks rather than full spectrum jobs. Founders also end up hiring friends, relatives, or people recommended by others because they think that they’ll be loyal to them, but it makes finding the right fit more difficult for everyone involved.

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