Entrepreneur and tech expert, Parna Sarkar-Basu, shares her insights on common mistakes that startups make and offers advice on how to avoid them. With years of experience working with leaders and innovators, she has seen the struggles that businesses face and the consequences of avoidable errors. She emphasizes the importance of validating market need before designing a product, focusing on benefits rather than product features, investing in experts instead of relying on free resources, ensuring legal and regulatory compliance, and being willing to pivot when necessary.
One of the key mistakes that startups make is not validating market need before designing a product. Research shows that many startups fail because they focus on interesting problems rather than addressing a genuine market need. Sarkar-Basu suggests conducting extensive research to identify your target audience and their pain points to ensure that your product truly meets a need. By prioritizing features that matter to customers, startups can increase their chances of success in the market.
Another common mistake that startups make is focusing too much on product features instead of highlighting the benefits that the product offers. Sarkar-Basu recommends shifting the focus from building flashy technology to developing solutions that make a tangible difference. By communicating the real-world value of their product and emphasizing how it will improve lives or businesses, startups can stand out in a crowded market and attract investors and customers.
Sarkar-Basu also stresses the importance of investing in experts and advisors instead of relying on free resources. Cutting corners on expertise can have devastating consequences for a business, leading to products that do not work as intended or legal issues that harm the company’s reputation. By surrounding themselves with talented and passionate people who can help overcome challenges, startups can increase their chances of success and avoid costly mistakes.
Legal and regulatory compliance is another crucial aspect of building a successful tech startup. Ignoring intellectual property rights, data privacy laws, or industry-specific regulations can result in legal challenges and financial penalties that negatively impact the business. Sarkar-Basu advises startups to work with reputable law firms with specialty practices to ensure compliance with all relevant laws and protect intellectual property adequately.
Lastly, Sarkar-Basu emphasizes the importance of being willing to pivot when necessary to avoid failure and achieve success. Founders must be agile to meet market changes or emerging trends and be willing to shift direction to capitalize on new opportunities in their industry. By staying open to change and being responsive to market demands, startups can increase their chances of survival and growth in the competitive tech startup landscape.
