The article below lists 11 common reasons start-ups fail. But I feel it left out a vital one... Talent Acquisition.
In any business, hiring the right people is paramount to the businesses being a success, but even more-so for start-ups. Making the right hires can help to build a strong culture, have a team that are committed to making the business great and create a company that people want to work for. Making the wrong hire could just be the reason the business fails. This applies to all levels of recruitment and across all departments.
Here's a few tips to avoid making mistakes when hiring:
1. Build a hiring strategy. Before you've even considered if you have hired the right person, you need to make sure your own house is in order. Know what it is you need and what you're willing to offer in return. This isn't just about salary and benefits, but also about the role, level of responsibility, the progression opportunities etc.
2. Don't limit your options. It may be tempting to hire from a competitor, but some of the most successful start-ups actually hire outside of their industry. This can promote a fresh approach, new ideas and inspire innovation.
3. Avoid job hoppers. The basis of any successful candidate is longevity (unless you're hiring a contractor, obviously!). If someone has had 5 jobs in as many years, there may just be an issue there.
4. Trust your gut. Even if everything seems perfect, your gut feeling can still be an important factor. Make sure you listen to it.
5. Use a reputable recruitment partner. The key benefits they will bring to the table are a network of contacts in their specialist areas and a strong knowledge of the skills required. Any agency worth their salt will pre-screen all candidates as well, which removes the risk of meeting candidates that just aren't suitable. Whilst this is method is often seen as the most expensive way of hiring, the vast majority of agencies will offer rebate schemes to protect you from unsuccessful hires.
Here are some mistakes I see founders make extremely often, leading them into the deadzone of not being able to raise money/make revenue/properly launch their company: