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5 Things To Not Do When Building A Tech-Based Startup By Saumya Bhatnagar

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Let’s face it – we have all blundered in life. When my co-founder and I began with our start-up, we made a lot of errors. Getting acquainted with the start-up business has its perks, one of them is picking up on the art of learning from someone else’s mistakes.

By writing this blog, I aim to assist tech start-ups in avoiding errors and slip-ups. I was 16 when I dove into the start-up world, I sold my first company at 20 and built another one, and I can genuinely label this decision as one of the best I have made.

Needless to say, getting involved in the start-up business can get tricky, failure at some point is inevitable, however, there are a few things you should definitely NOT do when starting out, here’s a list of them:

1. Stepping Into Something You’re Not Passionate About

Building a tech-based start-up is not child’s play. In the beginning, you feel enthralled and dive straight into it, but setbacks are inevitable and extremely disappointing.

My team and I have dealt with numerous hiccups, namely, being rejected by investors, losing clients etc.

During tough times, it is difficult not to lose motivation. The trick is to label these failures as learning opportunities, and using them to improve, this can only be done when you are adamant about your goals and equally passionate about them.

Therefore, it is essential that you are determined about what you wish to achieve. It is vital that you discover your calling and build a start-up focused on that. According to a study conducted by Harvard Business School, a lack of passion is one of the major reasons for businesses to experience failure. So remain confident about your idea, if you’re not genuinely invested in your business, it will reflect in every step you take.

2. Mismanagement Of Funds

Without adequate funds, it is virtually impossible for a start-up to survive. Almost half of the small businesses in the United States die out after five years in business.

I recommend that you determine your capital requirements in advance. Proper management of funds is crucial. Before you begin searching for investors, plan out how much money you require to initiate your business.

My co-founder and I spent a lot of time creating a substantial financial model, outlining potential investments and all other sources of funds. Before you apply for funds, make sure your projections seem real.

It is imperative that you maximize the use of the funds you currently have, I learned this after making a few mistakes, falling short of funds is anything but fun. So make sure you have a clear idea of where your money is going and what’s going to come out of it.

3. Not Having The Right People

You cannot expect to have a splendid command over every aspect in the field of business overnight, especially when you are just starting. However, every component of your start-up should be run skillfully, especially the technical one. As a tech start-up, you must form a team of hyper-productive front-end and back-end engineers that have expertise in the latest technological advancements.

According to a report of CBI Insights, 23% of the start-ups shut down because they fail to hire skillful employees. If you wish to increase the likelihood of the success of your start-up, ensure that your employees possess the required skill-set, an ability to learn, and MOST importantly, they should be equally passionate about the company.
Your employees need to be dedicated and willing to work hard in order to achieve the goals you share.

There are a plethora of skills that I have acquired throughout my journey, there were things that I did not know of before I began, and that is okay, however, it is necessary to grasp onto the learning opportunities that your entrepreneurial journey offers, that is how you make advancements.

I assess and evaluate every candidate based on various aspects, starting with interviews and Q&A rounds before welcoming them onboard, their willingness to learn and passion for the company are highly taken into consideration.

Another very important aspect of building a start-up is having the right kind of advisors. Your start-up needs to be pushed into the right direction, your advisors will inform you of the blunders you make, or are about to make, they will help you pave the path that your company is to walk on.

Our advisors have cautioned us against potentially catastrophic decisions, which made me realise their extreme significance.

4. Building Something of Minimal Use

I notice that many founders start building a product without genuinely assessing its usefulness in the market; there’s no revenue generation if there’s no user base. This approach disappoints not only the founders but the entire team as well.

My co-founder and I ensured the applicability and viability of our product before initiating the process of actually building it. We needed to know that the services we provide will be used on a large scale.

Most start-ups get caught up in developing an MVP(Minimum Viable Product) first, without properly ensuring their product’s viability, hence, it is ideal to explore the intermediary MTP or Minimum Testable Product. This is easy to build and consists of lesser functionalities.

This will save up on a lot of time that would be wasted in building something minimally useful.

5. Not Providing the Ideal Work Culture

In its early stages, the workplace environment of my start-up was chaotic. It took time and effort to transform it into a better place for my employees. I mainly focused on embracing transparency, cultivating strong coworker relationships, and offering employees flexibility.

Another neat trick is incorporating the use of a white-board in your workspace, I cannot stress enough on how useful this is. Brain-storming sessions become exponentially productive, a visual representation of your ideas and suggestions helps your teammates to comprehend them better.

According to, positive work culture can reduce stress. It also keeps the employees more engaged and consistent in their work. When a positive workspace is fostered, employees remain committed to their employer. So make sure you cultivate an ideal work culture in your start-up.

In the end, it is okay to get caught up in the charm of launching a tech-based start-up, but you should not dive into it without proper planning.

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