5 TINY MISTAKES THAT CAN BLOW UP YOUR BUSINESS STARTUP (MOST FOUNDERS MISS #3!)

Vinex Official
Apr 10
3 min read

Updated: May 22

Once a rising star in the F&B business startup scene—featured on Shark Tank, successfully expanding overseas, and raising capital from major investment funds—Vua Cua quickly became a name to watch. But within just three years, this once-promising business shut down all operations in Vietnam.

The story of Vua Cua isn’t just a cautionary tale—it’s a wake-up call for every aspiring entrepreneur. Startups don’t fail because they run out of money; they fail because of weak systems and poor strategy.

Let’s break down the 5 critical mistakes that caused this business to burn through cash—and more importantly, how YOUR business can avoid them.

5 SMALL MISTAKES THAT CAN DESTROY YOUR BUSINESS STARTUP IN JUST A FEW YEARS

1. THINKING “RAISING FUNDS IS THE END GOAL” – THE MOST COMMON MISTAKE

Despite securing investments from Shark Lien and Beacon Fund, Vua Cua fell into crisis because of poor capital management and cash flow control.

BUSINESS SOLUTION FOR STARTUPS:

Create a weekly/monthly cash flow tracker, clearly distinguishing fixed vs. variable costs.
Build a capital usage roadmap for every growth phase: 0–3 months, 3–6 months, 6–12 months. Know exactly where the money goes—and when.
Right after fundraising, conduct a strategic internal meeting to redefine business KPIs, financial plans, and HR allocations from the very first month.

2. EXPANDING TOO QUICKLY WITHOUT A STRONG BUSINESS FOUNDATION

Post-COVID growth led Vua Cua to rush into overseas expansion while:

❌ Supply chains were unstable

❌ Market knowledge was weak

❌ Staff lacked the capability to scale

BUSINESS SOLUTION FOR STARTUPS:

Evaluate your readiness to expand based on: current branch performance, consistent positive cash flow, and prepared teams.
Run a pilot model for 2–3 months in new locations. Track customer traffic, operating costs, and risk.
Only expand if the pilot meets at least 80% of goals—and only with clear plans for staffing, logistics, and operations.

3. WEAK INTERNAL MANAGEMENT, NO BUSINESS CONTROL SYSTEM

Vua Cua’s internal missteps included:

A 5 billion VND debt with no accountability
Broken trust among employees due to lack of transparency and poor reporting

BUSINESS SOLUTION FOR STARTUPS:

Monitor all contracts, receivables/payables with dedicated personnel and regular review cycles
Apply a 3-step spend approval system: proposal – approval – confirmation, with limits and tracking

4. STRONG BRANDING BUT POOR OPERATIONS – A DANGEROUS BUSINESS MISALIGNMENT

Although Vua Cua enjoyed strong branding and viral marketing, it couldn’t retain customers due to:

Loose daily operations
High cost of goods sold
Uncontrolled expenses

BUSINESS SOLUTION FOR STARTUPS:

Manage inventory daily and automate wherever possible
Calculate the exact cost for each product, and eliminate unprofitable menu items
Track each store’s costs as a “mini P&L” to identify profit/loss sources clearly

5. NOT KNOWING WHEN TO STOP – THE FINAL, DEADLY BUSINESS MISTAKE

Fortunately, Vua Cua was able to halt losses in time and pivot to a franchise model. But not all businesses are that lucky.

WHAT YOUR BUSINESS SHOULD DO:

Create regular reports combining finance and legal status
Prepare three business scenarios: continue, restructure, or shut down
If necessary, rebuild a leaner, more agile model within 30 days using existing resources