13 mistakes that you can avoid to build $10M startup


13 mistakes that you can avoid to build $10M startup

Here you read Tibo's story about the lesson he learned about his mistakes before he sold his last startup for $10M:

1. A deal Is NOT done until it's signed

This goes without saying, but whatever you do: PUT. IT. ON. PAPER. I lost a huge deal for a Rayman video game I made because I didn't put it on paper. Big mistake. (I wasn't smiling 3 months after this picture) A deal Is NOT done until it's signed

2. Not being distribution focused

Being a techie I was always focused on developing the product & making it better every day, rather than even thinking about how will I get customers & take the product to them. It was a hard lesson to learn. There's no point in building a product if your target customers don't even know that you exist.

3. Envisioning the product way too ambitiously

Like any other first-time founder, I underestimated the complexities of building, launching, marketing & selling a product. I was dreaming up a product that was far beyond the scope of reality, My bold ambitions were ready to shake the world with my product. Yeah, that didn't happen!

4. Not having a clear understanding of the users

Tibo-2 I built a startup for parents but I wasn't a dad yet. I was mostly operating just on assumptions.
And let me tell you, your assumptions are just fueled by your biases. Now I'm building Tweet Hunter for fellow creators, and operating directly from experience. It's much easier to understand your user when YOU are the target user

5. Hiring friends

Don't hire your friends just because they're your friends. Hire by:

  • Motivation
  • Competence

And no matter how much time you spend choosing, no matter how high the bar is, Double it.

6. Hiring too many people

Taking on too many employees can be counterproductive; I learned this the hard way after spending countless hours managing my interns. Turns out, doing it myself was much more effective!

7. Not having a core founding team.

Not having a core founding team.

30% Of Something Is Better Than 100% Of Nothing

Great co-founders are the true hack. You can't expect employees to give their 100% if they own 0% of the company. With cofounders, they'll go above and beyond because incentives are aligned Your relationship with your co-founder is unique, so it's bound to have its hiccups. But you can use every bump as an opportunity for growth

8. Spending time & energy on raising funds

Seeking funds is not bad, but the point is to understand "when & why" you need funds. Everyone thinks you're crazy until you raise funds, but crazy is good. It's crazy that win. Don't raise funds for:

  • Press
  • Bragging rights
  • Validation of an idea Not worth it.

9. Working 2 years on a product without any substantial growth

You've to be optimistic about the product you're building, don't get me wrong; but you must know if & when it's time to pull the plug, don't waste your most valuable asset, time, on a pursuit that's going nowhere

10. Not having a financial backup

As a founder, you need to have an emergency fund ready for when something unexpected happens. The cost of starting up can be expensive, & if you don't have money set aside for unexpected costs, it could ruin things.

11. Acting on every advice anyone gives

You can always turn to others for advice, but you're responsible for how the story will play out. People with advice don't have to live with the consequences, you have to!

12. Not taking enough breaks

Trying to 'have it all' can quickly take its toll on startup founders. Juggling the delicate balance of building & networking without taking breaks can be damaging in the long run. Don't forget to pause every now and again!

I always wanted to live a Nomad life, but in order to "hustle hard", I longed for that idea for a bit too long. But now I'm living it. This is from my stay in Thailand 👇 Not taking enough breaks

13. Audience-First Approach Is The Future

Incarnate your startup on Twitter to create a following. Or partnering with influencers on Twitter/Instagram/Youtube to save you months of pain.

Source: https://twitter.com/tibo_maker/status/1641422279337730052

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