A business executive with over a decade of experience in the real estate development sector, Scott Sohr serves as the president of STS Ventures, a startup incubator dedicated to the support of early-phase companies based in Nashville, Tennessee. Through his work with STS Ventures, Scott Sohr focuses on fueling the success of startups in a wide range of industries, including technology, real estate, renewables, and healthcare.
While research suggests that as many as 9 out of every 10 startups will fail, those companies that do manage to survive are the ones that avoid making the following three mistakes in the early phases of operation:
1. Offering a product that is not widely needed or desired
Companies that seek to produce an innovative product but fail to perform adequate market research before charging ahead with a project rarely, if ever, succeed. In order to gain market share, a company must offer a product or process that demonstrably improves upon an existing model.
2. Following a leader who lacks management skills
An entrepreneur may have great ideas and a strong vision, but his or her talents may not extend to being a capable leader for a growing company. Entrepreneurs who develop successful startups recognize when they have reached the limits of their abilities in this area and outsource the role to allow themselves to focus on the parts of the business that they know the best.
3. Being adverse to change
At its core, the most important thing that a successful startup can be is flexible. Financial circumstances, customer demand, and industry trends are always subject to sudden change, and rigid startups that don’t embrace adaptability will never outperform the competition.