Best advice to avoid startup failure

Mar 25, 2022

startup advice

1. LOVE is a MUST!

Running your own business is not an easy ride. Chances are it will be a lot harder (and more rewarding) than you ever could have imagined so make sure you’re working on something you love and care about. Instead of going after any old market opportunity, try to solve a problem close to your heart. If you’re only in it for possible financial gains, you will lose stamina and won’t persevere through all the setbacks you’re bound to encounter. However, two things are worth mentioning here:

When you’re running your own startup, a great chunk of your time is spent on tasks such as sales, marketing, customer service, networking, strategy development, figuring out logistics, and administrative tasks like invoicing and payroll. So, even if your business is solving a problem you’re passionate about, be prepared to spend a lot of time on things you might not love so much. As a business owner, you MUST get comfortable being uncomfortable and be willing to embrace uncertainty.
It’s important to love what you do, but don’t fall madly in love with your own idea. You and your business are better off if the object you love is the problem you’re trying to solve, not the idea. Get feedback early on and iterate on the idea. Listen to your customers and the feedback – don’t take things personally and be willing to learn.

2. Cashflow is key

There is no such thing as an overnight success and getting steady income from your startup will take time. Having sure stream(s) of income will save you from many sleepless nights and unnecessary stress.

Once you have calculated the expenses related to your business idea, prepare to double, triple or quadruple the number. It’s likely you will face unexpected costs, so it’s good to be both financially and mentally prepared.

Besides making a budget for your business, spend time making your personal budget. If possible, you might want to hold on to your day job, do freelancing/consulting or get a part-time job before giving your all to the new business (this may be tricky, particularly for women who tend to bear the brunt of childcare and household management. See more on that below).

As a small business owner, it’s crucial to get to grips with managing cashflow. Track where your money is going and ensure you can justify every expense. The investor Mark Cuban says “never buy swag. A sure sign of failure for a startup is when someone sends me logo-embroidered polo shirts. If your people are at shows and in public, it’s okay to buy for your own employees, but if you really think people are going to wear your branded polo when they’re out and about, you are mistaken and have no idea how to spend your money.” That might sound a bit harsh but serves a good reminder to track your money and be savvy with your expenses – you will have a lot of them.

3. Work-life balance

You may have several priorities to manage, such as childcare or household management responsibilities, which make it difficult to bring in extra money or find enough time for everything you need to do when you start your own business. If you have a (romantic) partner, make sure you discuss how to find ways of making it work during the inevitable ups and downs before they happen.

Just as important as discussing money is looking at how you manage your time as a couple or family. If you are a woman, this is extra important:

Women are five times more likely to spend 20 hours per week – that’s half a standard working week! – on household chores than men when both are in full-time employment
Women are eight times more likely than men to look after sick children or manage their children’s schedules
Globally, caregiving tends to be performed by women

These factors are not only costly in terms of time that could be spent earning money or on your business, but emotionally draining too. The value of these services and how to distribute them fairly should be part of any (particularly heterosexual) couple’s discussion on how to support a new business in a way that ensures the greatest chance of success in both personal and professional terms. There are many ways to approach this, but you may find this article helpful as a starting point.

If you do provide unpaid care to a family member such as an older person or someone with a disability, then do try and share this with other members of the family (challenging as this might be if there is an expectation for you to provide it) and investigate whether there are other resources available to you from elsewhere which may help. For instance, in the UK the charity Carers UK provides advice and resources, and other countries may have similar.

4. Get out there

If you want to run your own successful business, be prepared to put yourself out there and get over the fear of public speaking. Attend events, use social media and offer your help to others (might sound counterproductive but often pays off and leaves a positive lasting impression).

You might also want to consider, for instance, starting a blog or creating video content. No matter how great your idea is, chances are it will not sell itself so make yourself and your idea known.

Develop your communication and public speaking skills, tell people about your idea and get comfortable selling. Also, aim to build relationships instead of just chasing transactions.

Building a network of likeminded supporters will also help buoy you up during tricky times and give you the confidence to keep on going. Look for entrepreneur support groups – whether that’s in your local area, or online bringing together a particular niche that you relate to. This is particularly important for entrepreneurs who are women and/or from an underrepresented background (BAME, LGBTQ, those with disabilities or any other marginalised group), as these groups face unique challenges.

4. Knowledge is Power

Before getting started, it’s useful to arm yourself with as much knowledge as possible. You should understand what’s ahead of you and have some understanding of general business concepts. Beyond doing lots of reading, a great way to get started is to talk about your idea/concept to as many people as possible. Many entrepreneurs feel the need to be secretive about their idea, but most people
don’t start businesses, and there is a big difference between having an idea and actually executing it. The benefits of talking to people – friends, family, industry experts, potential customers, people you look up to, researchers – will be immense: they help expand your
thinking and develop your network. So, don’t be shy, reach out to people and get started!

Read more at: startupmanual.eitfood.eu

← Tips from Startups: What you need to know before starting an agrifood business Do I go at it solo or should I have a co-founder? →

Hub Locations

Aarhus, DENMARK

Belfast, UK

Bilbao, SPAIN

Quakenbrück, GERMANY

Warsaw, POLAND

Hub Locations

Bilbao, SPAIN

Haifa, ISRAEL

Helsinki, FINLAND

Munich, GERMANY

Paris, FRANCE

Member States & Associated Countries

Albania, Armenia, Austria, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Faroe Islands, Finland, France, Georgia, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Kosovo, Latvia, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, North Macedonia, Norway, Poland, Portugal, Republic of Cyprus, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Tunisia, Turkey, Ukraine, United Kingdom

Privacy Policy

1. WHO WE ARE

We”, “us” or “our” means EIT Food and its affiliated companies. The controller of your data is the EIT Food branch that initially collected your data and decided the purposes and means for using your data. Please find information about all our branches via https://www.eitfood.eu/contact.

This Privacy Policy is solely intended to provide you with information in relation to the processing of personal data through your use of the website. For our privacy practices in relation to our services, we refer you to the agreement as may be concluded between us.

Your privacy is important to us, so we’ve developed this Privacy Policy that sets out how we collect, disclose, transfer and use (“process”) the personal data that you share with us, and which rights you have. Please take a moment to read through this policy.

If you have any questions, concerns or complaints regarding this Privacy Policy or our processing of your personal data or you wish to submit a request to exercise your rights as set out in article 4, you can contact us:

Via email: privacy@eitfood.eu
By post: EIT Food iVZW Ubicenter A Philipssite 5 bus 34, Belgium

This Privacy Policy was revised last on 17.09.2020.

2. HOW WE USE AND COLLECT YOUR PERSONAL DATA

Personal data is defined as any information relating to an identified or identifiable natural person. Identifiable refers to identifiers (such as name, identification number, location data, etc.), that can be used to directly or indirectly identify a natural person.

The personal data we collect, is collected and used for the purposes as listed hereunder:

In the event you use the contact form on our website, we will use your personal data in order to reply to your query, via email or telephone.
In the event you register for our newsletter, your email address will be used in order to send you our newsletters, which may include invites to events, seminars, etc. organised by us.
We process your personal data for the purpose of supporting the website and enhancing your user experience, which includes ensuring the security, availability, performance, capacity and health of the website.
We process your personal data to enforce or exercise any rights that are available to us based on the applicable law, such as use for the establishment, exercise or defense of legal claims.
We may also use your personal data to fulfil our obligations as set out by the applicable law.

The following categories of personal data can be distinguished:

Contact data: in the event you make use of the contact form, you will be asked to provide the following information: name, address, email address, phone number, and any personal data that you choose to put in the designated blank field (please do not provide us with any sensitive information, such as health information, information pertaining to criminal convictions, or credit card/account numbers). This is information that is provided directly by you.
Newsletter: if you register for our newsletter, you will be asked to provide your email address. This is information provided directly by you
Usage data: we collect personal data regarding your activities on our website: IP address, device ID and type, referral source, language settings, browser type, operating system, geographical location, length of visit, page views, or information about the timing, frequency and pattern of your service use. This information may be aggregated and used to help us provide more useful information regarding the use of our website. In the event the usage data is completely anonymised (and can therefore not be traced back to you as an individual), this will not be considered personal data for the purpose of this Privacy Policy. This is personal data that is automatically collected through your use of the website.
Transaction data: we collect personal data relating to transactions that you make through the website, including your “contact data”, payment information and the goods and/or services purchased. This is personal data provided directly by you.

The legal basis for the processing of your personal data is based on consent. You have the right to withdraw your consent at any time. This will, however, not affect the lawfulness of any processing done prior to the withdrawal of consent.

Your personal data will solely be used for the purposes as set out in this article.

3. RETENTION OF YOUR DATA AND DELETION

Your personal data will be retained for a period of 3 years.

In the event you withdraw your consent or you object to our use of your personal data, and such objection is successful, we will remove your personal data from our databases. Please note that we will retain the personal data necessary to ensure your preferences are respected in the future.

The foregoing will, however, not prevent us from retaining any personal data if this is necessary to comply with our legal obligations, in order to file a legal claim or defend ourselves against a legal claim, or for evidential purposes.

4. YOUR RIGHTS

This article lists your principal rights under data protection law. We have tried to summarise them for you in a clear and legible way.

To exercise any of your rights, please send us a written request in accordance with article 1 of this Privacy Policy. We will respond to your request without undue delay, but in any event within one month of the receipt of the request. In the event of an extension of the term to respond or in the event we do not take action on your request, we will notify you.

The right to access

You have the right to confirmation as to whether or not we process your personal data and, in the event we do so, you have the right to access such personal data, together with certain additional information that you also find listed in this Privacy Policy.

You have the right to receive from us a copy of your personal data we have in our possession, provided that this does not adversely affect the rights and freedoms of others. The first copy will be provided free of charge, but we reserve the right to charge a reasonable fee if you request further copies.

The right to rectification

If the personal data we hold about you is inaccurate or incomplete, you have the right to have this information rectified or, taking into account the purposes of the processing, completed.

The right to erasure (right to be forgotten)

In some circumstances, you have the right to the erasure of your personal data without undue delay. Those circumstances include:

The personal data are no longer needed in relation to the purposes for which they were collected or otherwise processed;
You withdraw your consent, and no other lawful ground exists;
The processing is for direct marketing purposes;
The personal data have been unlawfully processed; or,
Erasure is necessary for compliance with EU law or Belgian law.

There are certain exclusions to the right to erasure. Those exclusions include where processing is necessary,

for exercising the right of freedom of expression and information;
for compliance with a legal obligation; or,
for the establishment, exercise or defense of legal claims.

The right to restrict processing

You have the right to restrict the processing of your personal data (meaning that the personal data may only be stored by us and may only be used for limited purposes), if:

You contest the accuracy of the personal data (and only for as long as it takes to verify that accuracy);
The processing is unlawful and you request restriction (as opposed to exercising the right to erasure);
We no longer need the personal data for the purposes of our processing, but you require personal data for the establishment, exercise or defense of legal claims; or,
You have objected to processing, pending the verification of that objection.

In addition to our right to store your personal data, we may still otherwise process it but only:

with your consent;
for the establishment, exercise or defense of legal claims;
for the protection of the rights of another natural or legal person; or,
for reasons of important public interest.

We will inform you before we lift the restriction of processing.

The right to data portability

To the extent that the legal basis for our processing of your personal data is consent, and such processing is carried out by automated means, you have the right to receive your personal data from us in a structured, commonly used and machine-readable format. However, this right does not apply where it would adversely affect the rights and freedoms of others.

You also have the right to have your personal data transferred directly to another company, if this is technically possible, and/or to store your personal data for further personal use on a private device.

The right to object to processing

You have the right to object to the processing of your personal data on grounds relating to your particular situation, but only to the extent that the legal basis for the processing is that the processing is necessary for:

The performance of a task carried out in the public interest or in the exercise of any official authority vested in us;
The purposes of the legitimate interests pursued by us or by a third party.

If you make such an objection, we will cease to process the personal information unless we can demonstrate compelling legitimate grounds for the processing which override your interests, rights and freedoms, or the processing is for the establishment, exercise or defense of legal claims.

You have the right to object to our processing of your personal data for direct marketing purposes (including profiling for direct marketing purposes). If you make such an objection, we will cease to process your personal data for this purpose.

The right to complain to a supervisory authority

If you consider that our processing of your personal information infringes data protection laws, you have a legal right to lodge a complaint with a supervisory authority responsible for data protection. You may do so in the EU member state of your habitual residence, your place of work or the place of the alleged infringement. In Belgium, you can submit a complaint to the Authority for the protection of personal data (Privacy Commission), Drukpersstraat 35, 1000 Brussel (Contact@apd-gba.be)

5. DISCLOSURE TO THIRD PARTIES

To the extent necessary or appropriate, EIT Food may disclose your Personal Information to external 3rd Parties, such as IT consultants carrying out testing and development work on our IT systems and other service and software providers who we may appoint as data processors such as e.g. for CRM purposes.

Where applicable, we will impose appropriate contractual, security, confidentiality and other obligations on to 3rd party providers and processors we have appointed, based on the nature of the services they provide to us. We will only permit them to process your Personal Information in accordance with the law and our instructions. We do not allow them to use your Personal Information for their own purposes and when our relationship ends we will ensure your Personal Information is securely returned or destroyed.

The above mentioned third parties may be located both within and outside the EEA. In the latter case, we will take the necessary measures to ensure that your Personal Information is adequately protected, secure, kept confidential and that we have a lawful basis for the transfer.

In addition, we may disclose your personal data in the event such disclosure is required or necessary in order to fulfil a legal obligation. We may also disclose personal data in order to protect your vital interests or the vital interest of another natural person.

As such, we do not disclose your personal data to our social media partners. We do, however, make use of social media plugins to direct you to our social media channels and to allow you to interact with our content. These social media channels are Facebook, LinkedIn, Twitter, Instagram and YouTube. In the event you click such link, such social media service provider may collect personal data about you and may link this information to your existing profile on such social media.

We are not responsible for the use of your personal data by such social media service provider. In such case, the social media service provider will act as controller and we refer to the privacy policies of those social media channels for information about the use of your personal data.

6. SECURITY

We have put in place appropriate security measures to prevent your Personal Information from being accidentally lost, used or accessed in an unauthorized way, altered or disclosed. In addition, we limit access to your Personal Information to those employees, agents, contractors and other third parties who have a business need to do so.

We have put in place procedures to deal with any suspected Personal Information breaches and we will notify you and the applicable supervisory authority of a breach where we are legally required to do so.

7. INTERNATIONAL TRANSFERS

We will ensure that any transfer of personal data to countries outside of the European Economic Area will take place pursuant to the appropriate safeguards.

8. COOKIES

Our website makes use of cookies. For further information relating to our use of cookies, we refer you to our Cookie Policy

9. AMENDMENTS TO THE PRIVACY POLICY

From time to time, we have the right to modify this Privacy Policy. You will always be able to consult the most recent version of the Privacy Policy on the website

The RisingFoodStars (RFS) addresses early scaleups that are past the ideation phase with a solid customer base, and ready for global market expansion. During this programme, we help companies to grow and scale their impact faster – through market testing new ideas, support from experts in the food industry, tailored networking with our world-class corporate partners, and privileged access to our investors community. Programme members are also invited to join a consortium of leading industry and academia to co-create in part-funded agrifood projects

The EIT Food Accelerator Network (EIT FAN) is a four-month programme that aims to fast-track science and technology-based innovations that are helping to solve global food system challenges. The programme is managed by our leading EIT Food partner organisations, operating from different regional hub locations in Europe. Each hub connects impactful agrifood startups with industry-leading corporate and research partners, to pilot innovative technology, and drive the ultimate goal of every business: a successful market adoption.

This is your opportunity to move your startup beyond acceleration – to become part of a rich ecosystem of business and research institutions, setup to help you transition from an early-stage company to a global scale up, disrupting our food system to make it more sustainable, healthy, and trusted.

So, what are you waiting for? Apply to EIT FAN to pursue pilot projects, investments, and benefit from expert coaching and mentorship. You will also have access to specialist facilities such as labs, pilot sites, maker spaces, and agricultural land, as well as financial support to help you raise your seed or series A investment round.

The Seedbed Incubator is a six month programme that aims to transform science and technology based innovations, that can help solve global food system challenges, into market-validated businesses. The programme is delivered by world class EIT Food partner organisations, operating from different regional hub locations in Europe.

All entrepreneurial teams and newly-formed startups accepted onto the Seedbed Incubator receive equity-free grant funding and access to our network to facilitate market testing activities with potential customers or end-users. Each cohort team is supported by business coaches and sector experts to prepare you for a successful business launch.

EIT Food Regional Offices

CLC Central

Austria
Germany
The Netherlands

CLC North-East

Albania
Armenia
Bosnia and Herzegovina
Bulgaria
Croatia
Czech Republic
Denmark
Estonia
Faroe Islands
Finland
Georgia
Hungary
Latvia
Lithuania
Moldova
Montenegro
North Macedonia
Norway
Poland
Romania
Serbia
Slovakia
Slovenia
Sweden
Ukraine

CLC North-West

Iceland
Ireland
United Kingdom

CLC West

Belguim
France
Luxembourg
Switzerland

CLC South

Cyprus
Greece
Israel
Italy
Malta
Portugal
Spain
Turkey

Cookie	Duration	Description
cookielawinfo-checkbox-analytics	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional	11 months	The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy	11 months	The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.

Best advice to avoid startup failure

1. LOVE is a MUST!

2. Cashflow is key

3. Work-life balance

4. Get out there