Did you know that the rate of startup failure in Nigeria is 61.07%? It is estimated that out of the 137,000 new startups/businesses that are founded every year globally, up to 90 percent of them fail.
Starting a new business is very exciting as it provides opportunities to make a profit and create an impact. However, sometimes new entrepreneurs overlook certain areas of their businesses that help guarantee that the business stays afloat beyond its first year and continues to grow.
Here are the top 5 mistakes that most startups make, and here are some tips to save you from committing them.
Here are the five mistakes that kill startups and how to make sure yours survives.
By learning from the experiences of others (both successes and failures!), you can increase your chances of building a successful business.
1. Falling in Love with Your Product, Not Your Customer
It is common for founders to develop a deep attachment to their product, investing significant time and resources in its refinement. But here’s the problem; your customers might not share your vision. I remember one founder who spent 18 months perfecting a feature nobody asked for while ignoring genuine user pain points.
Do this instead:
Leave the building and talk to real people before writing a single line of code. I’m not talking about casual conversations with friends who’ll tell you what you want to hear.
I mean structured interviews with potential customers who’ll be honest about your product and if it meets their needs.
For every hour you spend building, spend another hour understanding your users. Your product roadmap should be written in the words of your customers, not your engineers.
2. Playing Fast and Loose with Money
Nothing kills promising startups faster than running out of cash. I’ve watched founders splurge on fancy office space and team retreats before establishing product-market fit.
Some startups have huge burn rates and spend a lot in a short time with nothing to show but an empty bank account.
Do this instead:
Treat every Naira or Dollar like your last. A mentor once said, ‘Revenue is vanity, profit is sanity, but cash is king.’ Track weekly burn rates and runway calculations. Question every expense: ‘Will this directly help us achieve our next milestone?’ Create different financial scenarios: best case, likely case, worst case, and plan for the worst case. I’ve never met a founder who regretted being too frugal in the early days.
3. Whispering When You Should Be Shouting
A prevalent misconception among early-stage founders is the belief that marketing should commence only after product development is complete. I remember a brilliant fintech tool that failed because nobody knew it existed.
Do this instead:
Start building your audience yesterday. Share your journey openly. Write about the problem you’re solving on LinkedIn or Medium. Join communities where your potential customers hang out. A founder friend of mine drove her first 200 sign-ups by becoming a trusted voice in relevant online forums months before launching. Your early adopters need time to discover and trust you. Give them that chance by being visible from day one.
4. Trying to Be a Solo Hero
Many founders adopt a solitary approach, believing that no one else can execute their vision as effectively as they can.
This mindset often leads to burnout, ultimately hindering productivity and decision-making. An entrepreneur I know ended up in the hospital from burnout right as his company was gaining traction.
Do this instead:
Recognise your limitations. Write down what you’re excellent at, what you’re okay at, and what you suck at. Hire first for your weaknesses.
Can’t code? Partner with a technical co-founder. Hate sales? Bring on someone who lives for closing deals. Remember, A-players hire A-players. B-players hire C-players. Don’t be afraid to bring in people smarter than you. It’s the only way to scale beyond your capabilities.
5. Not Pivoting when it’s necessary
Markets evolve. Technologies shift. Consumer preferences change overnight. Yet too many founders cling to their original vision like it’s a sacred scripture.
A startup I know persisted with a B2C strategy despite clear indicators that a B2B model was more viable. The reluctance to adapt resulted in prolonged inefficiencies and lost opportunities.
Do this instead:
Build learning into your DNA. Set clear hypotheses and test them rigorously. When the data speaks, listen. My favourite startup ritual is the “What are we wrong about?” meeting, where team members challenge core assumptions without fear.
The most successful founders I know don’t have the best initial ideas. They’re the ones who evolved their ideas most effectively based on real-world feedback.
In conclusion, most startups fail, but yours doesn’t have to. The mistakes (that most startups make) I’ve outlined are patterns I’ve observed first hand over the years in the startup space.
By staying customer-obsessed, financially disciplined, visible in the market, supported by great people, and flexible in your approach, you dramatically increase your odds of building something lasting.
The startup graveyard is filled with brilliant ideas executed poorly. Don’t join them. Learn from others’ missteps. And when you inevitably make your own mistakes (we all do), fail fast, learn faster, and keep pushing forward. That’s what separates the startups we never hear about from the ones that change the world.
[Featured Image on mistakes startups make: Credit]
