Member-only story
Top 5 Mistakes Startups Make in Their First Year
3 min readFeb 6, 2025
Starting a business is exciting, but it’s also fraught with challenges. According to studies, 90% of startups fail, and many of these failures happen within the first year. Why? Often, it’s because of avoidable mistakes. If you’re launching a startup or already in your first year, here are the top 5 mistakes to avoid them.
1. Not Validating the Idea
Many startups fail because they build a product or service without validating whether there’s a real demand for it. They assume their idea is brilliant, only to find out too late that no one is willing to pay for it.
How to Avoid It:
- Conduct market research to understand your target audience.
- Build a minimum viable product (MVP) and gather feedback from potential customers.
- Test your idea with a small group before scaling.
2. Running Out of Cash
Cash flow is the lifeblood of any business. Startups often underestimate how much money they’ll need to survive the early stages, leading to premature failure.
How to Avoid It:
- Create a detailed financial plan with conservative revenue projections.
- Secure enough funding to cover at least…
