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5 Things that Kill Startups
By SiliconIndia   |   Friday,August 26,2011
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lty and this will kill your company faster than you can imagine.

Raising Too Little or Too Much Funding

In every startup, there comes a point when funding has to be raised. This is a crucial point where the startup has to think deeply about who they will be b
ringing on board along with the funding. Much thought and research also has to be put into deciding how much to raise. Raising too little will be a big problem as it might not be enough to meet all the adequate needs and put the startup in a position where they will have to convince the investors all over again to invest more money. While raising too little money can be a pain, raising too much can be a even bigger issue. Raising too much money means that you are giving the investors much more stake in the company than what is necessary. This, in most cases, will not have a positive impact on the company and can impair the management from taking decisions concerning the company.

Mismanaging Finance

Financial management is not a simple layman job; it is not rocket science either. You need to have the basic understanding of finance before you go ahead with the company. But once you feel as if it is too much for you and you cannot do the calculations alone anymore, you need to get your finance manger. A person who is well versed in the subject and has some practical, real world application knowledge of it, simply put, an experienced person who can manage it well. You cannot trust the finance of your company with an amateur manager as any mismanagement of finance can almost immediately put an end to the company?s growth and kill it.


We will come up with more insights on this in a future article.
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