There is a trend-set of startups in last few years.
Entrepreneurship is on the rise, and for good reason.
2016- till date has been the trendsetter.
Startup India, Standup India, Make in India, Ministry for Skill Development and Entrepreneurship, Incubation programs & many such schemes of government are operated to start new venture, business, promoting entrepreneurship.
You can feel the wave of “Quit Job, Start Business”.
But something critical is happening to the start-up culture.
People are usually confused to identify between small-business & startups. They feel whatever they are doing is great.
Starting a business is different from owning a startup. What differentiates a small business from startup is that small business is focused on “consistent returns” as its fundamental goal while startups has “growth” as its fundamental goal. Innovation obviously plays a key differentiating role.
A startup is a company that is in the first stage of its operations. These companies are initially operated by their entrepreneurial founders. They attempt to capitalise on developing a product or service for which they believe there is a demand in market & also solving the problem.
As a startup, most entrepreneurs think they are building the next big thing!
In reality, over 98% of them fail.
Crores & crores of rupees are burnt-out in zest of entrepreneurship, jobs are lost, there is demotivation due to failure,
Average age is of people in startup is 27years & this problem is increasing day by day.
Why do many startup’s fail?
It’s always easy to start up but when you face larger problems, & now when you are not able to sustain, the failure is on its way & making you more critical.
Allow me to explain this with
Startup Failure Equation
You might not be astonished to say that everyone shares the success formula, why is he sharing this failure equation!
It’s thy very important & simple though.
Startup Idea >>Building Solution >>Generating Revenue >>Problem in Sales>> Out of Money>>Startup Fails
Does it sounds familiar to every business.
How?
Now This is where I want to share exactly the ‘Top 10 Reasons of Startup Failure’.
I’m helping you to prevent this from happening!
1. People think startup is an easy way of earning money. No need of prototype & validation.
2. Usually a startup fall in love with their idea & not able to realise or particulate the market requirement.
3. Most of startup think building a good product/ service is itself an achievement. What about execution, they fail as lack of knowledge.
4. #Dropouts – Lack of education. Being a drop-out & building a successful company is not a rule, it’s just an exception!
5. Curse of knowledge: Apart from company into operations, getting funded, having few customers, they are unable to communicate & differentiate.
6. Shift from entrepreneurial leadership to managerial leadership is a barrier.
7. Being another next player in the space, not differentiating from other.
8. Product/service can be great but what about revenues. The revenue-cash flow balance is low.
9. Not having innovation, just being as a self-employed or professional working for another company,
10. Money procured at early stage is not available during expansion & sustainability which becomes critical.
Indian Youth Need To Understand the startup ecosystem, culture & Innovation not only at ‘Mindset level’ But also at ‘Skillset level’.
Hopefully, these insights will help you to overcome some obstacles of your own, whether you are a startup or planning to be.
Hoping to see many more successful startups.
You can write to me at reach@sagarphuria.com,
click here for my official website
Wish You all the Best!!!