What are the most common mistakes first-time entrepreneurs make?

  • Overestimating the meaningfulness of the value-proposition to the intended target audience
  • Underestimating costs
  • Overestimating execution capabilities (we can do this and that… )
  • Underestimating how much time it takes for funding
  • Overestimating hiring and talent attraction capabilities
  • Changing business model too frequently, without investing enough time and efforts in trying to make things work
  • Taking a top-down approach to market size (Gartner says the market is USD 20 billion) instead of taking a bottoms up approach (how am I going to get my first 1000 users)

Most common mistake: Underestimating the time it taks to build a successful brand and company. Think in years and not in months.

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Author: Prajakt Raut

Prajakt Raut is the founder of Applyifi.com, and author of the book for startups - ‘Starting Up & Fund Raising’ Prajakt personal goal in life is to encourage and assist a 100,000 people to become entrepreneurs. _____________ Prajakt is the founder of Applyifi - an online platform that provides startups a 36-point scorecard and assessment report on the venture's investment readiness [www.applyifi.com], and helps them improve their odds of getting funded. Prajakt is also the founding partner of The Growth Labs, a platform where growth-stage companies get sharp, incisive advice from senior professionals and experienced entrepreneurs. [www.thegrowthlabs.in] Before starting Applyifi, Prajakt was the head of operations at IAN, founding member of a leading incubator, and the Asia-Director for TiE (2004 - 2007). Previously Prajakt had co-founded Orange Cross, a healthcare services company, and was part of the founding team member of Idealake Technologies. While in college Prajakt had founded a printing business and has spent over 10 years working in leading advertising agencies. Prajakt’s book, ‘Starting Up & Fund Raising’, helps startups understand an investor’s perspective, and helps them improve their odds of getting funded. The book also helps entrepreneurs understand the building blocks of a business.

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