7 Mistakes First-time Founders Make!
Updated: Dec 31, 2022
Dhawal Jain: I burnt over ₹3Cr ($365K) making these 7 "less-talked-about" mistakes and eventually had to shut down the startup.
Putting them out here so that you can take better decisions.
Mistake #1: Raising Early
Institutional funding is cash that’s meant to multiply your growth.
Raising VC money before PMF is achieved can lead to founders pushing for growth where there isn't any scope.
Mistake #2: Low Salary
Founders are optimistic and do not anticipate the downside.
Going all in on your startup is great, but statistically, you will fail.
So, earn and save enough to keep you afloat.
Mistake #3: Burning Cash
You inherently know when to spend and when to not. Trust Your Instincts!
Investors want you to spend fast because they need 1 Unicorn out of the 100s they fund.
You only have 1 (startup) to run.
Read: Why Should Unit Economics to Any Business?
Mistake #4: Product Egotism
If the product is king, distribution is the kingdom.Without one the other is useless.
We all grew up fantasizing about making the next Apple. But you aren't Mr. Jobs, and this ain’t 1976.
Distribution is the key!
Mistake #5: Not Delegating
Your time isn’t scalable. You alone cannot make everything work.
Are you not delegating it because you love doing it?
Or because you don't trust others to do it as perfectly as you?
Mistake #6: Hiring Experience
You will likely do better with people you vibe with. This isn’t ageism.
Do you want ‘experience’ to be shoved up your ass when you ask for results?
Or is ‘young & hungry’ a better choice?
Mistake #7: Not Upskilling
Creativity works like a faucet. If new goes in, new comes out. or GIGO.
Upskilling when you are surrounded by 10 problems is easier said than done.
But to be honest, there isn’t any other option.