The first months of a startup are often compared to an obstacle race. With a large number of challenges to be met and an omnipresent uncertainty, it is easy to make mistakes that can compromise the future of the company. Although the success of startups is often associated with the ability to innovate and meet unsatisfied needs, young companies frequently face strategic, organizational or financial errors that prove to be fatal if they are not quickly corrected. How to avoid these traps? Here are the fatal errors of the first months of a startup And the advice to deal with it.
1/ Ignore market research
One of the most frequent errors at the launch of a startup is to believe that the product or service offered will sell by itself. Many entrepreneurs, led by an idea that they deem brilliant, launch their business without having carried out a serious market study. This lack of analysis can lead to dramatic consequences: a product that does not meet the real needs of the market, an offer too early or too late, or even a poorly adapted economic model.
Market study is not only to identify a target audience, but also to understand its behaviors, expectations and points of friction. A study conducted by Bpifrance in 2023 shows that almost 45% of startups fail in their first months because of an ill -aligned product with market needs. This highlights the importance of early validation, whether by surveys, product tests or first user feedback.
Before even thinking of developing a product, it is essential to conduct an in -depth study on the market. This includes competition analysis, the precise definition of consumer expectations and the evaluation of project profitability. It is also recommended to test a minimum version of the product (MVP – minimum viable product) to obtain tangible feedback before entering fully.
2/ Subsequate the importance of financial management
Many startups are experiencing difficulties because of financial mismanagement from the first months. Whether by excess spending for unnecessary equipment, poor calculation of margins, or optimistic financial forecasts, a startup can quickly be found in a precarious situation if it does not manage its resources rigorously.
One of the major reasons for these errors is the difficulty of providing cash flows. In France, according to an INSEE study, around 30% of startups are closing their doors in the first two years due to liquidity problems. Reckless management of funds can quickly lead to a lack of capital for essential investments, the paralysis of growth, even to bankruptcy.
It is therefore essential to develop a solid financial plan and to follow strict cash flow management from the launch. Entrepreneurs must have a clear vision of their fixed and variable costs, as well as beneficiary margins. In addition, having financial reserves and being ready to rotate if necessary is essential to navigate in periods of doubt.
3/ Negline the importance of the team
One of the pillars of the success of a startup lies in the quality of its team. Often, entrepreneurs underestimate the importance of surrounding themselves with good people from the first months. At first, each member of the team must not only have solid technical skills, but also share a common vision and be ready to face the daily challenges.
A study conducted by The Bpifrance hub In 2022 revealed that 60% of startups failed in their first months cite internal problems linked to a poorly constituted team, including disagreements on strategic management or poor role management. It is therefore crucial to have a complementary team and aligned with long -term objectives.
From the start, it is important to recruit people who share not only the vision of the company, but also its values. The teams must be able to work together in an environment where roles are clear and where communication is fluid. The recruitment of a co-founder or employees with additional skills, whether in marketing, finance or product development, can also make the difference.
4/ Ignore the need for a solid marketing strategy
One of the major errors made by many startups is to focus exclusively on the product without investing enough in the marketing strategy. A great product is not enough to guarantee success. Without an effective communication strategy to attract and retain customers, even the best ideas can be forgotten.
The study carried out by Kpmg In 2023 revealed that more than 50% of startups fail for lack of effective marketing strategy. In France, many young companies underestimate the importance of making themselves known quickly and to create a faithful user base. This can result in a lack of visibility and declining sales, despite the quality of the product or service.
It is essential to define a marketing strategy from the start, adapted to its target market and its resources. This may include the creation of an online presence, advertising campaigns on social networks, the use of influencers or participation in professional fairs. The main thing is to build a solid relationship with its customers from the first months. In addition, it is essential to regularly measure the effectiveness of the actions carried out and to adjust the strategy according to the returns of the field.
5/ Ignore user feedback
One of the traps in which many entrepreneurs fall is to believe that their vision of the product is perfect from the start. Too often, startups continue to develop a product without taking into account the real user feedback. Ignoring these returns can cause expensive errors and products that do not meet market expectations. However, startups that regularly integrate their users’ feedback into their development processes manage to improve their product in a faster way and avoid expensive errors by adjusting their offers according to market needs. Continuous iteration is the key to ensuring that the final product is in line with the real consumer expectations.
It is recommended to create a continuous feedback loop with the first users. Organizing test sessions, sending surveys and being reactive in the face of criticism makes it possible to improve the product and get closer to market expectations. The sooner you adjust your offer according to feedback, the more successful your chances of success.
