8 Mistakes First-Time Founders Make When Starting a Business

Introduction

Starting a business is hard. If you're like most first-time founders, you'll find yourself making some mistakes along the way. Here are 8 common mistakes that first-time founders make when starting a business:

Doing stuff for free

When you're first starting out, it can be difficult to find work that pays well or at all. Some people would argue that if you're going to do something for free, you should get experience and not charge anything. The problem with this approach is that some work is more valuable than other types of labor. If you're doing a logo design for someone who will actually use it as their brand's identity, then they'll probably want to pay for your time.

If you do decide to take on some unpaid projects, make sure that what you're working on will benefit your portfolio in some way so it proves useful when looking for paid work later down the road.

Not picking the right people to work with

Picking the right people to work with is an important part of your startup’s success, and it’s something that many first-time founders forget.

You need people who are a good fit for your business and trustworthy. They should be talented as well. But more importantly, they need to complement your skillset or have complementary skillsets so you can work together effectively once things get rolling.

Choosing their co-founders based on skills

Choosing your co-founders can be difficult, as it's not a decision you'll have the luxury of making twice. You have to find people who are good at what they do and also make you a better person.

You should really try to like the people you choose to work with because when things get rough (and they will), it's nice to know that there is someone else on your side who cares about your success as much as you do.

Thinking it will be easier than it is

When you’re an entrepreneur, it can be easy to think that your company will be easier to run than a traditional business. After all, you don’t have to deal with workplace politics or a boss calling you into his office on the second day of your job.

However, running a business comes with its own challenges and obstacles. If you don’t plan carefully in advance and prepare yourself for the hard work ahead, then things may not go as smoothly as they could have otherwise.

Not knowing how to market their business

The first mistake is not knowing how to market your business.

Marketing is not just advertising; it's about communicating your message to the right people. It's about positioning yourself and your business correctly so that you can communicate with your audience in a way that resonates with them.

Picking an advisor who doesn't add value

• Why it's important to have an advisor.

As a first-time founder, you know that one of the biggest challenges is figuring out what you need to do and how to do it. That's why having someone who has been there before can be invaluable. An advisor can help you navigate the ins and outs of starting a business: from legal issues to accounting concerns, they'll give you the insight you need without being too hands-on with your business.

How to find a good advisor.

When choosing an advisor, look for someone with experience in your field or industry—not necessarily someone who has run their own company before but rather someone who knows what works well (and doesn't) in general terms because they've seen so many different companies succeed or fail over time. You should also look for people who will be honest with you—advisors who are trying to take advantage of their position by giving bad advice won't be worth your time anyway! One final note: make sure whoever becomes your first advisor understands exactly how much work goes into starting up any kind of the business venture; if not, then finding another one might help both parties avoid confusion later on down the line."

Trying to do too many things themselves

As a first-time founder, you might be tempted to do everything yourself. You have an idea and you want to see it through from start to finish. That’s great! We all need to know our limits, and you will definitely learn more by doing something yourself than by hiring someone else (or finding an app) to do it for you. But there comes a point when asking for help is the best thing for your business—and that point may come earlier than you think.

There are many things that can be done much better by others than they would be by you: writing content, creating illustrations or graphics, managing social media accounts, etc. If these things aren't important enough yet in your business strategy then they probably won't be worth hiring a freelancer or consultant just yet because they'll take up too much of your time before they become valuable enough. Work with what works now but don't get caught up trying too hard at every task—you'll only end up frustrated later on when one thing goes wrong after another

Being naive about how much capital they need to raise

Many first-time entrepreneurs don't realize how much money they need to raise until it's too late. The bad news is that the amount of capital you need depends on your business model.

The good news is that you don't necessarily have to raise a lot of capital, and there are many ways in which you can finance your startup without going broke or selling a kidney.

To get started thinking about financing options:

• Think about how much capital you'll need for each phase of your business life cycle (startup, growth, and maturity), and then mark out milestones within each phase that require funding. For example, if you're creating a new product line and want to roll out 5 products over 3 years with an average price point of $50 per item, then you'd need approximately $750k before marketing begins (including research).
• Next, think about where this money will come from -- friends and family? Angel investors? Venture Capitalists? Crowdfunding platforms? A combination of several sources? You may be surprised at how easy it is to raise money when done strategically!

Learn from the mistakes others made.

When you're in the early stages of building a business, it's easy to feel like you're on your own. But there are plenty of people out there who have already made the mistakes that first-time founders make:

• Learn from others' mistakes. Don't be afraid to ask for help when you need it, either from people around you or from online resources like Google and LinkedIn
• Ask for advice when necessary. There are many entrepreneurs who would be happy to share their experiences about what worked for them and what didn't work for them as they built their businesses—so don't be shy about reaching out!
• Ask for funding if necessary. This may seem scary at first, but remember that building a successful business requires money—and if taking loans or investments means that your idea can succeed sooner than later, then do whatever is necessary so that it succeeds!

Conclusion

So, when you’re starting a company there are going to be many mistakes. But that just means it's time for you to learn from the ones who came before you! Hopefully, this article has given you some helpful insight into what not to do when starting your own business and hopefully it will help steer clear of these pitfalls in the future.