5 Things You Must Not Do as a Startup 2024

5 Things You Must Not Do as a Startup [2025]

Things you must Not Do as a Startup – Who doesn’t dream of becoming an entrepreneur? What sounds better than running a business, where you are your boss and in control of everything? Becoming an entrepreneur and running a small business is no easy endeavor. If you’re planning to start a business yourself, then you must have the following qualities.

• Creativity
• Competitiveness
• Extremely strong determination
• Confidence
• And passion

If you possess the aforementioned qualities then keep collecting them as we send a ton of appreciations your way because these are enough to make you a successful entrepreneur. Did you know? In 2014, 280 people out of 100,000 started their own ventures. By 2016, the number had gone up to 330 out of 100,000. It implies that the rate at which people are turning toward starting their own businesses, has increased with time and it will continue to do so.

However, for every startup, numerous bottlenecks come in the way. Setting up a business and making sure it functions smoothly, is undoubtedly difficult. Many little things play their part to make a startup survive, while there are only 5 things that can literally push all your hard work into a pit of in-compensable failure. So if you’re a startup, or planning to start one, put your reading specs on because you’re about to find out the things you must never do as a business in its infancy. So without further ado, let’s begin:

1. Begin by Forming an Effective Business Plan

What do people do when they wake up in the morning? Have dinner, go to work, brush their teeth, change into work clothes and then at night, have lunch. Something, just doesn’t feel quite right over here, does it? Well, that’s how your startup would be if there is no business plan.

A business plan entails details about your business’ niche, its target market, marketing plan, finances and the key features you offer. Without a business plan, the survival of your business would be shaky. So if you are planning to start your own venture, then start off by devising a solid plan.

2. Don’t Waste Time Hiring Wrong People

For startups, it is super-crucial to hire employees who actively play their part in making your business grow. Usually, out of desperation of filling the positions, startups end up hiring a person who has little or no experience at all. And the next thing you know, things begin falling apart one after the other. Thus, take your time with the hiring process and hire the ones with top-notch technical and behavioral skills.

3. Refrain From Forming Partnerships

There is a cliché associated with entrepreneurial ventures that they don’t survive unless they partner with another business. Well, partnerships might work in some cases; but not all. If you’re a startup, no matter what others tell you, never get into a partnership for that is the worst way to start a business. Build your business with your workforce only and don’t panic if things take time. Make ‘slow and steady wins the race’ your motto, and you’ll surely succeed.

4. Never Act Like a Know-It-All

Nothing, nothing, and nothing are more deteriorating for a startup when its owner has a ‘know-it-all’ attitude. When you’re a startup, you can never know enough about your customers. Period. The needs of your customers are changing all the time and to make sure you’re addressing those needs as a business, never feel awkward to talk to your customers through surveys and focus groups to find out what they need.

Thatis where your marketing research skills would come in handy and you will be able to determine if your product or service has a place in the market or not. Almost, 42% of the startups fail due to the lack of need for their product in the market. Of course, you wouldn’t want to picture yourself in this situation, would you?

5. Don’t Waste Your Money on Unnecessary Things

Lastly, never over-spend your money on your business if it’s in its early stages. Don’t go for expensive setups right from the beginning. A simple garage with enough space to accommodate you and your team, along with a high-speed internet connection and the right equipment would do just fine. Many startups fail because they don’t plan their expenses thoughtfully. Remember to set a budget and ask for cooperation from your employees in that matter. All the free food, fancy-looking workspaces, and more can be achieved when your business has stable finances. Remember, money spent smartly, is the key to a successful startup.

All Things Concluded

For startups, there is no challenge bigger than escaping the bottlenecks and surviving through them all. Repeatedly making mistakes and ignoring some of the crucial things vital in keeping your startup running can ultimately push you towards failure. Thus, instead of embracing your failure and stereotyping it by saying ‘I knew this would happen’, learn to avoid making such mistakes. All the top brands that have become an integral part of our lives, were once startups themselves. It is their perseverance and dedication that has made them thrive among their competitors.

9 Things Not to Do When Starting a Business

Interested in launching a business and looking to avoid mistakes along the way? Moving too quickly can lead to hiring the wrong people, spending too much time or too many resources in the wrong areas or being too rigid about your roadmap, among other rookie missteps. Bentley consulted some expert professors and successful alumni entrepreneurs and uncovered some surprising tips.

For starters, understanding the current business landscape is paramount. Don’t mistake your expertise in your company’s product or service as mastery of starting and running a business. Research the industry your company will be part of and learn what customers and investors expect from good businesses — for example, by reading the Bentley-Gallup Force for Good survey, which polled thousands of Americans nationwide on their opinions of the role of business in society today.

Here’s some advice from entrepreneurs and experts on what NOT to do when starting a business.

DON’T WASTE TOO MUCH TIME ON YOUR BUSINESS PLAN

Of course, when you start a company, it’s good to have structure for your ideas and a vision that is tangible and presentable, but a formal, meticulous and micro-detailed business plan at your seed stage could be a waste of your time and resources, since you will likely toss it out or rework it completely after your first meeting.

Bentley alum, entrepreneur and investor Cort Johnson ’06, vice president for business development at AtScale, cautions that you shouldn’t waste months and months honing your business plan. Instead, he suggests using a simple 10-page slide deck that covers all the important bases, including your market, team, advisers, competition, existing problem, solution to the problem, product or brand development strategy, projected traction, early financials and needs.

Bentley Professor of Management Tatiana Manolova agrees. “Having the perfect pitch presentation with visuals can be more important than having the perfect business plan. This is particularly true as we are facing so many audiences on social media crowdfunding growth and financing. Entrepreneurs must have the perfect pitch for every occasion.”

DON’T BE AFRAID TO PIVOT

There is always the risk that even the best-laid plans will face disruption, from revenue streams to regulatory or other limitations. But don’t let the fear of changing your ideas hold you back. Be flexible and embrace pivoting early on.

“The severity of the COVID-19 pandemic’s impact caused both a supply and a demand shock to the global economic system,” says Manolova, referencing a coauthored study on women entrepreneurs.

The research — presented at the World Trade Organization — found that although the pandemic disproportionately affected women entrepreneurs, as their firms are more likely to be younger and smaller, they were able to pivot their business and incorporate digital strategy. A few ideas to lower risk: cost-cutting, changing the pricing model and moving into a new line of business.

DON’T RUSH TO BE FIRST TO MARKET

Especially in the “speed wins” era of consumer startups, there’s culture of panic that can take over and make even veteran entrepreneurs anxious about the need to be the first company or product to market, or the first to “disrupt” a particular industry in order to secure market dominance.

But being the first to market doesn’t mean that you will always be the consistent market leader. Instead, create a bona fide example of market need and traction that you can use to execute your business plan even more successfully — maybe even grease your wheels on the road to recruit investors.

If you’re a software company or mobile app, this could mean learning from the design, functionality, marketing, funding or adoption mistakes of your early competition. If you’re launching a traditional brick-and-mortar business, this could mean simply creating a bigger market for the type of product you’re selling and then exploring ways to innovate.

DON’T IGNORE PAPERWORK

Even at the earliest hypothetical stages of your business, take the documentation of your ownership stake and your partnerships seriously. Look around for resources near you or online that can help create your legal framework for free or pro bono. Don’t overlook the importance of dotting your I’s and crossing your T’s from the beginning.

“We all think working on paperwork, budgeting and keeping up to date with insurance is miscellaneous work, but it’s important and necessary,” says Gerly Adrien ’11, co-owner of Tipping Cow gourmet ice cream. She shares important points she learned when starting her business: Know your budget and review it often; figure out what your expenses will be and how much revenue you need to make it balance. Do not get behind on figuring out what taxes you need to pay; make it a priority and work with an accountant on setting it up the right way from the beginning. Get general liability insurance and any other types of insurance you may need; look at the options to keep your business safe.

DON’T ASK EVERYONE YOU KNOW FOR FUNDING

Yes, if you’re working on a small project and only need $50K, asking friends and relatives for money is fine. But involving people you know for larger projects can be tricky.

You also shouldn’t reach out to every possible investor out there. Some venture capitalists want to be the first ones in the door, and shopping your opportunity around may make you used goods. You could hurt your chances by going to the wrong investors or too many of them.

“There are so many funding opportunities, but you have to be aware of timing — who comes when — because they are different stages of financing,” Manolova says. “Coordinate and calibrate your message accordingly.”

DON’T HURRY THE HIRING PROCESS

Finding the right people to join your team is always tough. Sometimes you want to rush to get people on board. But taking your time can be a major value-add in the long run. Spend the time and energy up front vetting candidates.

“You cannot do everything,” says Adrien, who is teaching a Global Business Strategy course at Bentley. “You need to find people who will be able to execute your vision, your strategy, your operations, finances and other areas that are crucial to your business. When hiring, do not hire fast and under duress. Think about if you are not there, who is going to be able to do it for you the right way.”

Bring in people who can not only do the job, but also think a little deeper. Look for colleagues who offer distinct skills and unique resources and networks, or even just distinctly culture-creating personalities.

“When you think about the role you are hiring for, think about not only what the person will do for you on a day-today basis, but think about what they can do for you that will provide value, who will be part of the vision and who will be there even when times are tough,” Adrien says. “Also remember ethics when hiring. Don’t try to hire people who want to nix the full process and find quick fixes.”

Top of mind for Adrien: “I try to think of the areas I am not the best in and hire that person to teach me. I love being able to tell my vision, and for someone to respond by telling me their ideas for how we will do it. I continue to learn every day and even take the time to be in each person’s role so that I can see how I can be a better business owner.”

DON’T FORGET THE BIG PICTURE

Modern entrepreneurship culture loves to harp on the statistic that nine out of every 10 businesses fail. But those numbers can be misleading as to the definition of failure.

If you define failure as the inability to IPO, that’s one thing. But you can also think of a successful company as one that gets a high valuation and decent payout, especially when weighing the option of how much equity to give up in exchange for investment.

DON’T FOREGO YOUR SALARY

Entrepreneurs have a tendency to put all of their available funding and liquidity back into their businesses, sometimes without thought for their own personal finances. But paying yourself a salary — even if it’s a small wage, even if you’re bootstrapping — will be crucial to your longevity and your future success.

“You’re not creating a side hustle,” Adrien says. “Think about how your business is a true business with a long-term strategy and vision. What problem are you solving? What legacy are you trying to build? Are you wanting to build generational wealth?”

She shares five guiding principles to create a long-term strategy for your business: What are your goals, in terms of revenue, expenses, salaries and emergency savings for the first 5 years — and how will you meet that? What are the monthly goals that you must achieve and complete to meet the yearly goals you want to create from your business? What is your salary each year? Who do you need on your team internally and externally to build this business? What impact are you creating from your business?

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