India is considered to be one of the biggest ‘Startup hubSss in Asia’. All this is due to supportive government policies like ‘Stand up startup India’ and enormous incubation centers available for upcoming entrepreneurs. But, even with these extensive infrastructural facilities, startup failure rate in India is around 90% i.e. nearly 90% startups shut down within the first year of their existence. Only 10% are able to survive and mint money from the investors for their further expansion.
Clearly something is amiss in our startup culture. Are the businesses not attracting customers in the right way? Or are they competing with each other based on the prices? Whatever may be the reason, the ugly truth is our entrepreneurs are failing to start-up their businesses effectively.
Here’s a look at how an entrepreneur can start his/her business in a right way-
1) Develop an entrepreneurial mindset
‘A true entrepreneur is a doer, not a dreamer’. Having an entrepreneurial mindset is the most vital thing if you wish to succeed in your venture. A business without a passionate and determined founder is like a body without a soul. However, if the founder is strong headed and a visionary, he can do wonders to his business.
2) Generate lots of ideas
‘The best way to have a good idea is to have lots of ideas’. Therefore in order to generate efficient and successful ideas, you should brainstorm with your friends. Form a group of likeminded people with similar interests as yours and discuss trends and problems with them. You can either identify a problem or bridge a gap currently existing in the industry.
3) Analyze the industry thoroughly
Once you have generated enough number of ideas, it is very important to analyze the industry for its acceptance. It is important to understand whether your idea is worth implementing and if it adds any value to your customers. You should try to map the growth potential and the returns you expect to earn in near future. A thorough break even analysis will help you set a direction for your business. Remember- ‘Our industry does not respect tradition, it only respects innovation’.
4) Study your competitors
‘In business the competition will bite you if you keep running. However, if you stand still, they will swallow you’. Therefore, it is important to analyze your competitors’ strategy and think ahead of them. A quick launch of new product/service will help you gain the first movers advantage. This in turn will result in higher market share and better brand visibility for your company.
5) Develop a blue ocean
Although it is very important to analyze the competition but it is not the only measure of your business' success. Therefore, it is very important for companies to try to create a blue ocean (i.e. venture into the untapped markets) and focus on themselves rather than getting into a red ocean (and competing on prices). A red ocean only results in a price war and declining profitability for the companies.
Remember-‘Companies that solely focus on competition will die. Those that focus on value creation will thrive’
6) Diversify the business to sustain
‘To sustain longevity you have to evolve and to evolve you have to diversify your business’. Whenever you start a brand, think of it from the perspective of growing it in future. How you can diversify the portfolio and form many sub brands around your parent brand. This will ensure that you are able to expand your product portfolio and sustain for a longer period.
Entrepreneurship is all about discovering an opportunity and working on it to form a successful venture. It is said that –‘Most successful entrepreneurs don’t begin with brilliant ideas- they discover them on their way’. So, a right entrepreneurial mindset with a lot of passion and dedication to achieve the goal is enough to guide you through the way to success.
With the evolution of technology and government friendly schemes, starting up a venture in India is not at all difficult, however an adept entrepreneur is one who can start-up effectively and make a huge impact in the industry.
Remember- ‘being an entrepreneur is easy but being an adept entrepreneur is tough and strenuous.’