Startup Red Flags To Avoid

Most startup fail because of some occurring problems that could have been prevented before they have emerged. Here are some of the flaws that you need to avoid if you own a startup.

Unscalable idea

Investors are more into large nets possible in terms of potential consumers. They would rather invest on the next Google that will appeal anyone than a small startup that only targets small market.


It is best to always research the market. You may have great ideas, but you also need to look into its market. Market location is very important if your startup is more into food and services.

Go to market strategy

You need to think far ahead even if you are just starting. Do not forget to look into your startup’s go-to-market strategy and plan on how to achieve your proof-of-concept to attract growth capital.

Lack of focus

Do not launch multiple businesses at the same time. It is best to focus on one startup first and move on to the next once the first one is already doing well.

Long term road map to ROI

It is important to clear roadmap at least ten times return on your invested capital.

No revenue model

It is understandable if you do not have a revenue model on day one. However, there should be a clear communication of your startup revenue plan along the way. Your revenue model should be credible assumptions that could justify your current valuation. It should also encourage investors to bet on you.

Advisors or mentors

If you are new in the world of business and entrepreneurship, a mentor or advisors are always helpful to give you some additional suggestions in creating backup plans for the future.

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