Opinions expressed by Entrepreneur contributors are their own.
Key Takeaways
- Common startup advice pitfalls include quitting after minimal investor rejections, mistaking tentative support as guaranteed and making hasty decisions on pivots or spending.
- Successful startup leadership involves skepticism, tailored decision-making and prioritizing advice that aligns with a company’s specific stage and resource availability.
Advice is one of the few things a startup CEO will never run out of. It comes from investors, board members, peers and even your own employees. And most of the time, it sounds convincing. The challenge is that not all advice is useful. In fact, some of it can quietly put your company at risk if you follow it too closely. Over time, many founders discover that ignoring bad advice is just as important as acting on good advice.
Below, I will be discussing some common examples that may sound fine in theory but can cause real damage in practice.
Related: 8 Practical Tips for Successfully Launching Your Startup
1. “Just talk to 10 investors. If none of them bite, quit.”
On paper, this seems logical. If 10 people don’t believe in your startup, maybe there is no market. But here is the reality: Investors are not a random sample of wisdom. They pass on most pitches for reasons that have nothing to do with you.
The math alone makes this bad advice. A typical venture capitalist might meet 100 companies to invest in one. Quitting after talking to 10 investors is like dropping out of a marathon after running 200 meters. The odds have not even had a chance to play out yet.
Many founders raise money only after dozens — or even hundreds — of rejections. It doesn’t mean their idea was bad; it just meant they hadn’t found the right match yet. So if you’re hearing “no” after “no,” don’t assume it’s a verdict.
2. “Don’t worry, we’ll support you.”
This one usually comes from investors, and it always sounds comforting. Until you remember there is an invisible second half of that sentence: until we decide not to support you anymore.
It’s not that investors are lying. In the moment, they probably believe what they’re telling you. The problem is that circumstances change — markets shift, funds dry up and priorities get rearranged. By the time you’re counting on that “support,” it may no longer exist.
The smarter move? If someone says, “We’ll back you,” the follow-up question should be, Great, how much and on what terms? It’s not confrontational. It’s just removing the gray area that could leave your startup exposed later.
Related: I Wish I Received This Advice as a Young Entrepreneur
3. “Hire engineers overseas. They’re cheap.”
This advice looks brilliant on a spreadsheet. Labor costs drop, output theoretically rises and your investors think you’ve discovered gold. But the real world doesn’t match the spreadsheet.
Hiring a remote team across the world adds complexity at a time when your startup can’t afford distraction. You’ll spend endless hours trying to manage time zones, quality and turnover. Cheap labor is not cheap once you factor in the headaches.
Yes, plenty of big companies have offshore teams. But they also have the infrastructure, budget and middle managers to make it work. A young startup rarely does. Most of the time, what you save in money you lose three times over in time.
4. “Pivot into another business. That’s what saved Company X.”
You’ll hear this when things aren’t going great. Investors love to throw out examples of companies that “pivoted” and then became successful. But the truth is, for every success story, there are hundreds of pivots that ended in flames.
The real danger here is distraction. If you start chasing whatever shiny new market someone suggests, you’re no longer building your company — you’re just trying on random outfits until one fits. Most of the time, you end up broke before you ever find the right one.
That doesn’t mean you should ignore reality if your business truly isn’t working. But pivoting should be your decision, based on evidence from your customers and your market, not because a frustrated board member thinks it’s a quick fix.
5. “Let’s take on the biggest competitor head-on.”
Sometimes bad advice comes from inside your own team. A well-meaning colleague might suggest you go after the giant in your industry directly, arguing that you’ll prove your strength by taking them down.
That’s a quick way to get crushed. Big companies have deep pockets, brand recognition and teams whose full-time job is protecting their turf.
A smarter path is finding where they’re weak or distracted. Aim for the parts of the market they ignore. Build strength in the shadows. Once you’ve carved out your own base, you can decide later if you want to stand toe-to-toe. Until then, avoid this move.
6. “Spend big now, it’ll prepare you for later.”
Few things are more dangerous for a startup than having money to burn. The temptation to buy big systems, hire faster than needed or invest in tools you won’t use for years is strong. Someone on your team will always say, “We might as well get it now so we’re ready.”
The problem is you’re never actually “ready.” Startups are constantly shifting. That shiny ERP system you thought would solve your problems might be irrelevant by the time you’re big enough to need it. In the meantime, you have just drained cash that could have extended your runway.
The trick is to listen without obeying. Ask yourself: Does this advice fit my business, right now, with the resources I actually have? Or is it just someone projecting what worked — or didn’t work — for them? So stay skeptical, trust your judgment and remember that no one knows your company better than you. Good luck!
Key Takeaways
- Common startup advice pitfalls include quitting after minimal investor rejections, mistaking tentative support as guaranteed and making hasty decisions on pivots or spending.
- Successful startup leadership involves skepticism, tailored decision-making and prioritizing advice that aligns with a company’s specific stage and resource availability.
Advice is one of the few things a startup CEO will never run out of. It comes from investors, board members, peers and even your own employees. And most of the time, it sounds convincing. The challenge is that not all advice is useful. In fact, some of it can quietly put your company at risk if you follow it too closely. Over time, many founders discover that ignoring bad advice is just as important as acting on good advice.
Below, I will be discussing some common examples that may sound fine in theory but can cause real damage in practice.
Related: 8 Practical Tips for Successfully Launching Your Startup
The rest of this article is locked.
Join Entrepreneur+ today for access.
