The founder of Adventures Lab, Ruslan Tymofieiev (Ruslan Timofeev), and the managing partner Andrew Kryvorchuk share their knowledge on the five of the most common failures and mistakes that startups make during a pitch presentation and how they can avoid these slip-ups to secure that crucial funding from investors. Recently, they started a new project Hey, Pitches! That allows early-stage startups to learn from experienced investors what they should correct to attract financing.
Five Common Failures of Startups
Having Vague GoalsRuslan Tymofieiev said that some startups begin a business for the sake of starting a business, not because of a need they want to satisfy. He stated that it is a fundamental problem if the business lacks a defined objective. Most startup founders leave their jobs and gather a team to begin a startup because that is trendy. When the founders are asked why they want to begin, they often give a vague or cliché answer.
A startup should be established on filling a particular gap or meeting a specific need. Failures and Mistakes of Startups– The approach to building a startup should be innovative. Suppose the early-stage startup founder establishes his startup on problems that are either unimportant or have no feasible solutions. In that case, such a startup may be doomed before it begins because it will hardly get a client.
According to Ruslan Tymofieiev, a lot of founders confuse discomfort for problems. He said people would hardly respond to an offer to eliminate a nuisance but they would be willing to act if it’s an actual problem.
Little or No Knowledge of Your Audience
Most startups barely know what their customers need because they do not understand them. They barely know who makes up their target audience, their location, language, and what influences them. Ruslan Tymofieiev stressed that this is so because most young startups fail to carry out any kind of market research to determine “who” will do business with them and whether what they are offering is in demand or not.
Most startups are very confident in their capabilities that despite the unavailability of adequate funding, they hurriedly sink all their money into a project. Ruslan Tymofieiev (Ruslan Timofeev) says you need at least $100K to actualize a startup right now.
The problem is either the absence of a business partner or one with an identical skill-set as you. With one person at the top, most team members being inferior in expertise cannot objectively criticize their decisions. With two similarly skilled partners at the top, there will likely be no objective approach to the business.
Five Common Mistakes of Startups | Failures and Mistakes of Startups
- Not Preparing Properly for Presentations
Andrew Kryvorchuk states that most Ukrainian startups fail to prepare for their pitch properly. He said that their ideas are great but the delivery of this idea to investors is the problem.
- Information Overload
Andrew Kryvorchuk stated that the presentation should arrest the investors’ attention from the get-go. However, startups usually start their presentation with a lot of insignificant information to show off how impressive their project is. A presentation should be straight to the point and brief.
- Screen Reading
Many founders mess up their pitch by simply giving voice to exactly what’s on the screen. This is a big “No” during a pitch presentation, and it communicates your lack of preparation to the investors. Simply reading what is on the screen scores you no point. The investors can read for themselves.
- Taking Too Much Time
Startup founders often spend too much time making their case to the investors, and it gives no good unless they want to bore them and lose their interest before they are halfway through their pitch. To prevent this, one should not try to impress them with too much information and tell them what they came to hear.Inability to Connect with the Investors
- Inability to Connect with the Investors
When startups fail to get their pitch on the right track, they will end up talking to investors whose interest is no longer in their presentation.