Startup and their mistakes: The business combo
Are you a Solopreneur, a freelancer or aspiring to be entrepreneur thinking to start your own startup business planning to turn your ideas into reality?
Caution!! Most of the startup fail in there early stages. Here are some mistakes that startup makes with their solution which you should be aware of for a successful startup.
According to a report by NASSCOM More than 1,200 startups came up in 2018 and likely to multiply by 2020. India stands 3rd across the globe when it comes to startup. Bangalore is the startup capital and IT hub of India as it is a home for many successful startup like zoom car and FlipKart, it is also called as silicon valley of India, Most of the startups and founded by college graduates and young professionals. But sadly Indian startups have encountered 90 percent of failure rate, says a report by IBM Institute for Business Value and Oxford Economics.
So what are the reasons behind the rate of failure of why startup fails?
No proper business strategy
For every startup business to be successful strategy is very much important, strategy basically means where you are going and what it takes to do that, it’s a chain process which we call as strategy which should define the overall mission, vision and oversight of an organization. No proper strategy leads to breakdown of your business.
Firstly, see who your target audience, what is your product, what is your value proposition? And build the strategy accordingly.
If you are looking for a good strategy to bring a boom in your business you may refer a book ‘Good to great’ by Jim Collins, ‘Business strategy’ by Tracy Brain.
Analyzing the market’s need.
This is one of the simplest things to keep in mind what the market demands. Companies lack to provide the product which is perfect for the market so analyze the market risk, face the competition and adapt it quickly in order to comprehend the market.
Always keep customer in mind and based on his problem you can generate valuable product, because they can help you get more lead and more business. Once you get to know your customers need you can sell them the product more effectively.
No legitimate unit
To build a strong business you need a strong team, people with same mind set as a team plays a key role in understanding and executing the startup vision. A wrong team may end up doing nothing productive even though they are the best individually as they don’t share the mindset resulting in failure.
So to get your startup stable and strong business get a good team at any cost that can execute the plans get the work done as per strategy and having a good team can make a loss making company to profit making company.
Startup lacking vision
Most of the companies that are able to survive have a long term vision and they know what they gonna become, this vision is brought on by the early team and it is used as a north star for the business.
Most people get this wrong despite its sounding simple they think only of being profitable company in the world, instead on targeting on a single number and running with it work on the development of the company like the production rate, customers satisfaction that will make more clearer.
I recommend you to go through the book ‘start with why’ by Simon Sinen that will help you get better vision to build you company.
Scaling up rapidly
According to Forbes scaling too fast can kill your business as many companies may not have proper resources to sustain it and eventually breakdown, not all companies are meant to be multinational with thousands of employees at the start. The smart trend in startup is staying as small as possible this gives companies the ability to adapt and reinvent themselves quickly. Also getting a co-working space instead of a traditional office space could be a viable option while scaling or cutting down the employee count.
Scaling up too fast might be the end of your company. Slow and study scaling up will help you win the race.
Not adapting quick enough
If you unable to read what’s happening with your business and how market is growing then you might be left behind. Adapt as quick as possible as a startup you never except what your customer demand if you won’t adapt the market quickly you will end up losing your customers and eventually your curve.
So understand the market curve and adapt it as quick as possible. Only then you will able to survive the market and get a colorful outcome out of your business which will make your business successful.
Following these principles of business will always fetch you success, so believe in yourself be dynamic as the market is so that you are not left behind. Nothing works better than improving your product, your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe….good luck!!
Syed Shoaib is an Aspiring Blogger who is enthusiastic about blogging and writes blogs related to entrepreneurship. In his copious free time he enjoys travelling, reading books.