How to Avoid Common Startup Pitfalls

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The popular saying that ‘knowledge is power’ holds true in business as many other areas of life, considering the fact that most startups have a lifeline of 5years. Here are some pointers to help you avoid some of the most common startup pitfalls:

1. Use a contract – You need to always have a contract with partners, clients and employees in order to keep things straight and defined;

2. Create agile business systems – Create a network of operations that guide you towards attaining your strategic and operational objectives;

3. Understand your payment terms –  Be financially prudent and ensure that costs are well appropriated;

4. Cover your legal bases – Hire an attorney to help define legality and compliance issues in your business;

5. Know the difference between employee and independent contractor – Know what roles and commitment levels you need a regular employee for and what roles could be outsourced;

6. Don’t consider joint ventures without an agreement – Clearly communicate your expectations, responsibilities and limitations about joint venture agreements with your collaborators and ask for formal documentation;

7. Find the right tools – Use electronic business tools like outright: a simplified, secure online bookkeeping service and  Evernote: an online “everywhere” app  to capture and access ideas by voice recording, text, documents, and so on, to make your business operation more efficient.

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Author: 234Finance

234Finance.com is an online platform that promotes African entrepreneurship. We achieve this by bridging the gap between investors and early stage startups in Africa’s emerging market.
234Finance.com is strategic for promoting entrepreneurship through the power and effective use of information.

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234Finance
234Finance.com is an online platform that promotes African entrepreneurship. We achieve this by bridging the gap between investors and early stage startups in Africa’s emerging market. 234Finance.com is strategic for promoting entrepreneurship through the power and effective use of information.

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