October 19, 2020, 1:08 pm | Read time: 3 minutes
Whether on “Die Höhle der Löwen” (the German version of “Shark Tank”) or independently, startup founders worldwide strive for success with their own companies. Entrepreneur and investor Carsten Maschmeyer shares which mistakes they should definitely avoid in an interview with TECHBOOK.
Is the main work done once a (tech) startup is founded? Wrong! If you don’t follow some important tips now, you’ll end up losing a lot of time and money. Carsten Maschmeyer has observed hundreds of startups and knows exactly what pitfalls await. He reveals the five most common mistakes in an interview with Andreas Filbig, the editor-in-chief of TECHBOOK–both in the video and in the article.
Mistake #1: Overestimating Your Own Innovation Lead
Tech startups, in particular, should be aware that they are operating in a global market, says Maschmeyer. In plain terms, just because you developed something first doesn’t mean a competitor somewhere in the world can’t quickly catch up and even surpass your company. If the market, such as in the U.S., is also larger, the competitor can quickly achieve a breakthrough first.
Mistake #2: Failing to Recognize Missing Skills in the Founding Team
Founders need to ask themselves if they have all the necessary skills at the leadership level to lead the company to success. For example, if a computer scientist and a sports scientist develop an innovative fitness app, a great product can emerge. However, it remains unclear whether they have enough know-how for budgeting and sales. Founders must be honest with themselves and bring suitable colleagues into management, says Maschmeyer.
Mistake #3: Not Focusing Enough on the Right Personnel
Mistake number three directly follows the second. It’s not just in management that you need to find the right employees. Recruiting should be handled professionally at all levels. It’s completely wrong to do it as a side task as a founder. Maschmeyer cites a principle from Silicon Valley: “You are who you hire.”
“What was your biggest tech purchase mistake, Mr. Maschmeyer?”
Maschmeyer: “Jeff Bezos should focus on fair minimum wages!”
Mistake #4: Underestimating the Importance of Sales
Sales expert Carsten Maschmeyer places particular emphasis on this point. “Sales is the second founding,” he states clearly. Once the basic structure is in place, it’s about generating revenue. This should not be taken lightly, especially in the B2B sector.
Also interesting: “Presize” from “DHDL” receives another investment after the show
Mistake #5: Too Few Investments
It doesn’t help a startup to scrape by with small funding rounds from one investment to the next. If you then skimp on personnel and other crucial aspects to delay funding rounds further, you’re heading in the wrong direction! Don’t be afraid of being too diluted by larger investors. Maschmeyer’s tip: “Don’t save, invest and hire good people.” In the end, it’s all about the exit proceeds.