The following review will provide a number of examples that every entrepreneur should try to avoid when starting a business. Some of the holes referenced below run parallel to bankruptcy. With this in mind, we strongly recommend that you carefully follow these guidelines. Remember, it is better to be safe than sorry. Each of you must make your own decisions based on your due diligence and other critical factors.

1) Have a founder. Startups should have more than one founder. The reason for this is credibility. Having at least two founders helps to diversify the work. It’s also nice if the founders are from different backgrounds, so each of them has something different to add to the mix.

Additionally, investments can be difficult to launch with a single founder. With this in mind, potential investors may feel that your ideas are not good enough. From a psychological point of view, when you are involved in a startup, there will be more bad days than good ones (yes, we know, it’s unfortunate). Having another founder support you during those days, and vice versa, is key. One of the best things about the early stages of a startup is the brainstorming sessions. It is impossible to describe in words the great satisfaction of coming together as a team with the perfect solution to a problem. Avoid individualism: that kind of spirit will not get you far. Team players are key, try to stay together as one and create an environment where everyone supports each other.

2) Wrong location. Location is key. If you are located in the middle of nowhere, it will be very difficult not only to attract talent, but also the investment that will help you build and launch your company. If you have an amazing idea and plan to execute it in the best way possible, try moving to a bigger city where there is more action. At first it will be difficult to get used to a new city and all the new changes, but you can believe that in the long run it will be worth it.

Some of the best cities to start a business are Silicon Valley, Boston, Seattle, Austin, Denver, and New York.

3) Do too many things at once. One of the biggest problems startups have is trying to do too many things at once. This creates distractions and makes you less focused on the tasks that need to be done. Don’t try to go big right away. Do something small and do it better than anyone else. Once you’ve built your initial idea, then it’s time to start adding new features. The easier you make it for the public, the better; otherwise, they’ll be overwhelmed and won’t understand what you’re doing.

Remember. There is nothing wrong with changing the idea you started with despite what the market is demanding of your product. Some of the best projects didn’t turn out the way they were planned.

4) Hiring C-employees. On average, it can take around 2-3 months to hire a person depending on your location. We encourage you to be vigilant 24/7 and never stop interviewing people. Talent is hard to find, but not impossible.

In the event that you are a new company involved in the technology industry, make sure that you hire the best programmers. Before you hire them, review the projects they’ve been working on, view case studies, and ask for a first-hand account from previous clients. This will help you make an informed decision.

Also, we advise you to stay away from recruiters at an early stage. They don’t care about your company as much as you do and all they’re looking for is your 25% commission based on the annual salary of the prospect you’re trying to recruit. This is too much money for a startup to throw out the window. It’s a pain to take care of human resources, however, someone has to do it. After all, this is your company!

5) Launch too early or too late. If a startup launches its project too early, there is a chance that the product will not be complete and will not satisfy consumers. The main problem here is that if the project is not finished, it will completely shut down its users and as a consequence, people will not come back. On the other hand, you may have the problem of launching too late. Not only does this issue give the company a bad image, but since you have not been able to meet your milestones, it also creates a hole in the company’s pockets because keeping the lights on is not cheap.

From our point of view, release when you have something solid. Don’t plan to release the absolute best while waiting for that process to complete, start with what you need and move on.

6) Raise more or less of the necessary capital. Startups make this kind of mistake all the time. Make sure you have developed a detailed business plan that you are constantly updating and carefully following. This business plan should be the guideline for the company when it comes to entering a financing round. Keep track of your finances and know when you’re running low on money. Be sure to plan accordingly so you can raise a little more of the money you need (in case of surprises) to see your business through to the next funding round.

7) Lack of budgets. When startups raise money, they sometimes forget that money is very easy to burn. Even if you feel like you have everything covered, chances are you don’t. There are always unexpected expenses that come along the way. With this in mind, we strongly recommend that you keep all expenses as low as possible. Try to negotiate every bill and stretch as much as you can for the sake of your company’s cash flow. Try to operate with only the necessary number of employees. Another example of wasting money could be moving into expensive office space before the business earns any revenue. There are many examples of startups blowing up their bank accounts by renting out very nice offices. The bottom line: Avoid getting an office space. If possible, have everything start from home and only move to an office space when it’s the absolute last resort.

8) Investors with lack of knowledge and experience. Raising money is a tough battle. Dead money is the type of investment that comes from a person who does not add value to the company. A good example of this would be startups that just bring in some of their friends or family at an early stage. These types of investors will not provide the necessary momentum to have a successful start-up. This may also alienate angel investors and venture capital firms that might want to participate in a later round of funding. Another tip is not to have a large number of investors in the Seed Round (first round of funding). Otherwise, it will go too crazy with the legal paperwork in the next funding round, and as a consequence, the start-up’s attractiveness towards VCs and private equity will be extremely reduced.

9) Arguments between founders. There are many examples of founder fights, potentially resulting in the loss of a team member. Try to avoid fights, set guidelines so that you never get into a situation that is impossible to handle. Make sure your startup has a healthy work environment. Remember, startup life is very difficult to start with, don’t add extra obstacles and always try to understand each other. As explained in our “10 Must-Know Legal Tips for Startups” article, having restricted stock will prevent founders from leaving the company with all the stock. Starting a company is no joke, and it is a long road ahead full of obstacles and darkness. Make sure you have a trusting and special connection with that person with whom you decide to share this journey.

10) Lack of marketing. Your startup may have a unique product or platform, however, if no one knows about your product, it’s as if it doesn’t exist. Be sure to spread the word and reach as many people as possible. Find out what the best marketing channels are to reach the right audience. Please note that print media or advertisements are less effective than online resources nowadays. In any case, as a startup, your company should NOT spend too much money on advertising.