The article highlights three common pitfalls that can hinder a startup’s success: lack of founder-market fit, an unrealistic plan, and poor planning. Here are the key points from each section:
Lack of Founder-Market Fit
- A strong founding team is crucial for a startup’s success.
- Investors want to back founders who have an unfair advantage or unique skills that will help the company succeed.
- If your founding team doesn’t have an unfair advantage, it’s hard to resolve; only extraordinary traction can make up for a lacking founder-market fit.
Unrealistic Plan
- A plan that doesn’t make sense is a major pitfall for startups.
- Investors want to see a clear and achievable path to growth.
- Be ambitious, but don’t bend the laws of physics to your will. Sense-check every plan, and question your assumptions.
Poor Planning
- Building a startup takes time, and it’s unrealistic to expect rapid growth.
- A good operating plan should show how the company plans to scale efficiently.
- If your plan is impossible, you won’t come across as a high-quality founder.
