Startup challenges and issuesAnandhakrishnan JM
To start a business or to become an entrepreneur will be everyone’s dream, Making It come true takes a lot of time, effort, and money. There are over 20lakh companies in India and being one of them is like being a sand in the sandstorm. Majority of the students passed out from universities are not becoming an entrepreneur, everyone needs a job.
All colleges in India are preparing and competing with each other to make their students get placed in a better firm, and except a very few colleges supports and provides training for entrepreneurship. What happens after getting placed in a company, they will work lifelong under someone maybe without satisfaction in their jobs. Everyone may not get a satisfying job. Many entrepreneurs born when they realize that they cannot continue working under someone or a dissatisfying job or if they come from a family having a business background.
Coming towards the problems faced by startups, The challenges can be categorized into three,
1. Before starting
2. When Commenced, 0-5 years
3. After starting, above 5 years
The first challenge is going to be the mindset and culture of the living environment. The family, friends, Teachers and the whole environment may not support. This is because the mindset of the majority of people is to get a better job in a better company and ah! , the life is settled. One with a clear goal must not get discouraged by all these and to go forward to achieve the goal. When one decides to become an entrepreneur there comes the next challenge, whether to start or not even if there is a little support from the environment. What will be the future, will the expected income can be obtained.
The idea can itself become a challenge, whether people really need the product or not, will people accept the product and more. these questions will go on through the mind. All these can be overcome by the courage that success can be obtained.
Getting support to start the company in another challenge. The government of India has launched a lot of programmes for supporting young entrepreneurs. Getting this support may not be that easy as it sounds, but by preparing and doing home works on the project and presenting it, may help for getting the support from Government.
In the second stage, That is when we start the company and run it. Many more challenges are going to be at this stage. All days will be ending up with more and more challenges, surviving these will make a successful entrepreneur. Being an entrepreneur is not an 8 hours or 10 hours job, Working the whole time and sacrificing for the company for making it a successful firm.
Next comes the validation process. Validation itself is a tough task. Validation of the product includes knowing the product from the customer side the changes need to be done in the product and so on, it may take time but validation is the main strategy while looking up to a successful company.
Having the correct resource is another challenge, the inventory, and the team. Hiring the right person for the right job is the way to make the company lead to success. at the initial stage, the entrepreneur needs to play the role of a better team player and lead the team. training should be given to the newly recruited team members.
Fundraising becomes another challenge.If the initial research on the company is not proper it will end up investing time and money into a product that public doesn’t want and won’t buy. Proper utilization of the fund will help the company to grow faster. Starting a business with a very little money is risky. Because finance is needed for Advertising, Buying inventory, and day to day expenses.
For an IT-based startup company getting proper projects is another big challenge. There are a lot of startup companies in India many of them become flop only due to the lack of project availability. Clients will always look up to larger companies for doing their works. In the situation when there is a lower availability of projects, there comes the advantage of some startup accelerating companies. They provide a wide range of projects for incubating startups. There are platforms where startups can find projects according to their skill and financial requirement and when the project is finished immediately they will get paid.
When the product goes on the market and when the company gets some income from the product there comes the toughest challenges of all. competing with the leading companies. The competition may be overcome byways of advertising and making people aware of the product. The competition gets increasing when the company becomes more successful. There comes the role of technology. years before Nokia mobile phones was ruling the market an now we can see where Nokia is. technology changes, new technology was introduced by other brands and the people always go for innovative products. By introducing newer technologies to the product the market can be captured. the technology also decides the future of the product, That is today the product can be sold but will it be able to sell it tomorrow, With innovative technologies, the product will stick on to the market and make a great turnover to the company.