Nomadiq Innovation Hub. Mistakes that novice founders make

Alisher Tolegen, city — Almaty, head of the venture direction at Investbanq and general manager at Nomadiq Innovation Hub

Founding a startup is a difficult but exciting journey. However, on the path to success, novice founders often encounter common mistakes that can undermine even the most promising ventures, regardless of the founder's age or experience. I would like to highlight the main ones that should be considered when launching your own startup.

Inadequate understanding of the target market

Before investing time and resources into development, it is important to ensure that your product or service is in demand. A common mistake among beginners is creating a product that is interesting only to themselves but does not solve real audience needs. It is often observed that founders "fall in love" with their idea and start developing it, practically without checking if there is real demand for it. They rely on personal beliefs, thinking that this is enough. But the market can be cruel: if a product has no real buyer, no amount of faith will save it.

To avoid this mistake, the first step should be thorough market research. Analyzing competitors, conducting surveys and interviews with potential customers, and testing hypotheses will help understand whether your idea solves an actual problem and whether customers are willing to pay for it.

Poor team selection

The approach of "working with friends and family" may seem appealing, but in most cases, it does not work. Often, founders tend to work with friends or relatives simply because it is convenient. Situations arise where, due to personal relationships, important business decisions are delayed, or conflicts begin within the team due to differences in goals and vision. For example, a partner who has talent in finance but does not share your passion for the product may hinder progress.

It is important to assemble a team based on necessary competencies and experience. The team should complement each other in skills and share a common vision. A written agreement on roles and responsibilities is also advisable, as it will help avoid many problems in the future.

Product development mistakes

Perfectionism is a frequent trap that founders fall into, concentrating all efforts on perfecting the product. Founders spend months, and sometimes years, refining details that may not be so important to users. This leads to a loss of time and money on improvements that may turn out to be unnecessary in practice. In a startup, it is critical to quickly launch a minimum viable product to understand how interesting it is to the market, and then improve it based on real feedback.

Real data and feedback from customers will provide a clear understanding of what needs to be improved and what are just unnecessary features.

Financial planning

Many startups underestimate the importance of financial planning, especially if initial investments seem sufficient. They count on future revenue and attracting investments, ignoring current expenses. For example, due to unforeseen costs, such as an increase in rent or sudden marketing expenses, the initial capital can quickly run out.

It is ideal to have a financial model that takes risks into account and defines spending limits. However, given the specifics of startups and frequent changes in development strategies, it will be sufficient to simply have an expense budget to maintain an adequate runway level. Whenever possible, avoid unjustified expenses, especially in the early stages, and strive for flexibility in spending.

Ignoring the importance of networking

Some novice founders underestimate the value of networking, believing that success depends only on the product. But useful connections help find customers, get advice from mentors, and attract funding. Having a wide network of contacts in the startup ecosystem and venture community significantly increases the chances of success.

Attend events, participate in accelerators, join startup clubs, and use social media to interact with other entrepreneurs and potential partners.

Neglecting legal aspects

At the start, legal issues often seem secondary. However, not concluding agreements between co-founders, paying no attention to intellectual property, or incorrectly drafted contracts can lead to big problems in the future. For example, if your co-founder leaves without signing a non-disclosure and non-compete agreement, it can lead to the leakage of business ideas and loss of customers.

You do not necessarily need a permanent lawyer from the very beginning; it is enough to consult with external legal consultants at the early stages of the project. On our market, there are already legal consultants specializing in startups, so that all key documents are properly drafted. Register all rights, patents, and contracts, even if at first glance it seems like an unnecessary formality.

Lack of flexibility and readiness for change

Beginners often insist on the initial idea, ignoring market signals. For example, a product may be aimed at solving one task, but as it progresses, it turns out that customers need other features. Unwillingness to adjust course can lead to failure.

Be ready to revise the plan based on feedback and market changes. Regular hypothesis testing and product optimization will help adapt to new information.
Launching a startup is a complex process that requires hard work, discipline, and the ability to learn from mistakes. The above are only the most common mistakes observed in our market. The earlier a novice founder realizes and avoids common mistakes, the greater their chances of building a successful and sustainable business.