The CEO of TouchStone, Brett Fox, says he has been punishing the team three times before settling on the team he is working with.
The first team failed as a result of the theft of two founders of the patent and left the company a day before the negotiation of an investor.
The second team failed because it was not good enough.
The third group has the required homogeneity for the establishment of the company but the departure of two of the 5 founders in the team one year after receiving the financing of the company.
According to reports, PIM 70% to 95% of startups cannot withstand failure.
Surely you do not want to be in a company team that may fail in the market at any time is one of the most difficult periods and decisions that may pass a day. So we will mention in this article the most routine errors that may cause the failure of startups.
1- Do not have the right team Does not negotiate with the founders at all because you need to have the everything clear among you and them especially because this is the key to the agreement among you and this does not mean that there are no times for difference but there must be mutual respect between all the views.
The founders need to be smart and passionate about the idea of the company and that their vision is all proportion to the vision of the establishment of the company. Because different visions may be one of the most important reasons why founders leave companies early so you must protect yourself and your company.
2- Setting the wrong rules within the company
Rules are what form the culture within the company. You need to put rules and culture within the company before you are looking for the first founder with you. Of course there is no objection to its expansion later, but there must be some building blocks that you can build on them later.
Culture of commitment. You must make sure that the team is committed to the company because laying the foundations of commitment between the founders within the start-up companies is the most important foundation for success.
Any new person you include may effect the culture of commitment to negative or positive so you should choose your partners and employees carefully.
3- Do not have a good marketing plan
It's not enough to have a good product because people will not know enough about your great product unless you have a solid marketing plan.
Just because you own a website or have a massive selling power or advertising is not enough either. Of coarse these are necessary. But you should think about ways you can reach customers and how much they will cost you. The best book that can help you with such a plan is How Any Startup Can Achieve Explosive Growth by Gabriel Weinberg
4- Money
You should be reconciled with yourself and your team about the money being lost and the money you are loosing. You must have a strong financial plan and implement it rather than the opposite so that you can control the money within your company. In terms of expenses, salaries and funds that enter the company.
5- Incompatibility with investors
Imagine with me what would have happened to Apple if the 50% of the owned investors decided to close the company ?? Or did you invest your father's money and suddenly he wanted it immediately ??
Attracting investors to the company is necessary and important but you should choose them carefully as your team chooses. You must make sure that your vision of the company's growth matches the investor's vision, otherwise you will face many difficult problems later