Startups are at their sexiest when hundreds of millions of people around the world use something that a couple of guys and girls built in their garage.
But I’ve noticed how that perception lays a trap for many first-time entrepreneurs. With their sights set on serving the masses, first-time founders often conclude that they must build a product that will work for millions of customers — before they even have one.
This is such a major problem that Startup Genome identified “premature scaling” as the number one cause of startup failure. Surveying 3,200 startups in 2011, the startup-community hub Startup Genome found that a whopping 70 percent failed because they tried to scale too early — expending resources on add-ons like expensive marketing and hiring salespeople before they truly had a product to satisfy a sufficiently large market.
Here are three ways to avoid the trap of startup premature scaling and build a successful business the right way.