HUKM supports start-ups and SMEs through business development, consultancy and investment. Its Chairman, Alex Raubitschek, says founders need focus, market understanding, trusted networks and fast decision-making to avoid common mistakes that stop promising businesses from scaling.
-- From pivoting too often to relying on one major client, experienced investor Alex Raubitschek reveals the red flags entrepreneurs should avoid when building a business
HUKM Chairman, Alex has revealed five of the most common mistakes that can stop promising start-ups from scaling – as entrepreneurs navigate an increasingly fast-moving business landscape.
Operating within the start-up and SME space, HUKM works across business development, consultancy and investment, with a focus on the entrepreneurial ecosystem.
Alex believes some of the biggest barriers to growth can come from decisions made by founders themselves.
With around 20 years’ experience working across SMEs, start-ups, private equity and venture capital, Alex says he repeatedly sees the same problems – from founders constantly changing direction to becoming dangerously reliant on a single customer.
He believes three fundamentals underpin many successful companies: focus, clarity and people.
Alex said: “For businesses to be successful, and for people to be successful, typically it is focus.
“I always think that focus and clarity are the two most important things.
“An entrepreneur has hundreds of ideas, so the successful entrepreneurs are the ones that are able to be like that, but also have that absolute, almost military-focused discipline of focus.
“You double down on the basics.”
One of the first mistakes Alex warns against is pivoting too often.
Start-ups are regularly encouraged to change direction when something isn't working, and Alex acknowledges that the ability to respond quickly is one of the advantages smaller businesses can have over large organisations.
But constantly chasing the next idea can prevent a company from ever establishing itself.
He said: “People always say, ‘Don't be scared by pivoting.’ That's true.
“But I think if you keep doing it, then you'll never scale.”
A second major warning sign is becoming overly dependent on one customer.
For a start-up searching for revenue, securing a major client can initially appear to be a breakthrough.
But Alex says founders can naturally gravitate towards whichever customer is providing the most cash, potentially leaving the entire company vulnerable if that relationship ends.
He said: “In the early stages – or in any business actually – you go where the cash is and you can be sucked into one particular client.
“That's risky.
“If that goes down, it stops you from scaling.”
Another common problem is failing to properly understand the market.
Alex believes entrepreneurs can become so convinced by their idea that they fail to conduct enough research into whether customers genuinely need what they are attempting to sell.
Asked about the mistakes he most commonly sees in early-stage businesses, he said: “Not understanding their market, and not doing their research enough for what the problem is that they're solving.”
While entrepreneurs now have access to an enormous amount of business information online, Alex believes speaking to people with genuine experience remains one of the best ways to learn.
He said: “The best way to do that is through networking and connections and talking to people who've been there and done it.
“You kind of want to have people who've actually been there and done it.”
However, the fourth mistake can come from going too far in the opposite direction – listening to too many advisers.
Running a company can be a lonely experience and Alex is a strong advocate of founders surrounding themselves with good people.
But seeking multiple opinions before making every decision can create paralysis.
He said: “I'm a big advocate for advisers, but I think it's a double-edged sword because you want to have the right advisers.
“Some businesses have hundreds of advisers. They can't make a decision.
“It's a real balance.”
The fifth warning sign is taking too long to make decisions.
Alex believes entrepreneurs should have enough information to make an informed choice, but warns that waiting indefinitely for certainty can be just as damaging as rushing.
He said: “Sometimes people can rush to make a decision without having all the information.
“You want to be informed, but typically the wrong decisions can also be made if you leave them for too long.
“Quick decision-making is key.”
While having trusted people to act as sounding boards can help, Alex believes founders also need confidence in their own judgement.
He added: “You can question yourself sometimes too much and often the instinctive direction will probably be the right one in terms of your own decision-making.”
For Alex, much of entrepreneurship ultimately comes down to execution.
Asked for the best business advice he has received, he pointed to two simple principles: “back yourself” and “just do it.”
He said: “Loads have got great ideas.
“The people who are successful are not necessarily the people who've got the ideas. It's the people that actually did it.
“Just back yourself and do it.”
Alex's own career has spanned around two decades in business.
He started within recruitment and staffing and helped grow a professional services recruitment company to around 100 employees, approximately £8million in revenue and £2.5million in profit before the business was sold.
He later worked with former Dragons' Den star James Caan's private equity business, Hamilton Bradshaw, where he was involved with portfolio companies.
Alex also became involved with the government-backed Start Up Loans scheme and has since moved further into private equity and venture capital.
He believes it is an increasingly fascinating time to build a company.
Artificial intelligence in particular is changing how businesses operate and compete, with Alex arguing that companies are moving from a “labour-based advantage” towards an “intelligence-based advantage”.
He also believes AI is compressing traditional organisational layers and increasing the importance of speed and data.
He said: “Speed becomes a competitive weapon and speed and data actually become very valuable assets.”
But despite the explosion of interest in AI, Alex believes many established UK companies have yet to meaningfully embrace it.
Older businesses face the challenge of effectively “rewiring” existing operations, while new start-ups have the opportunity to build around AI from the beginning.
He said: “There's still quite a large number of businesses in the UK that are not adopting it.
“There's still quite a large number that say they are, but they're not.”
Looking ahead, Alex believes areas including healthtech, medtech and defence innovation offer particularly interesting opportunities for entrepreneurs.
But regardless of the sector, he says there is no single route someone must follow to build a successful company.
Instead, aspiring founders should become as informed as possible, recognise the opportunities in front of them and develop a trusted network.
Alex said: “There are always opportunities out there. You've just got to be able to identify them.
“If you can develop a very strong network of trusted, good-quality people, which can take years sometimes, that will [help].
“The ideal is to be doing something that you truly believe in and enjoy.”
Contact Info:
Name: Alex Raubitschek
Email: Send Email
Organization: HUKM Development
Website: https://www.hukmdevelopment.com/
Release ID: 89205451
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