Entrepreneurship is a streak, a passion that inhibits all. The young generation today is better informed and has been blessed with technology to make things happen. In this situation the passion of entrepreneurship has ignited the creations of startups targeted at innovation and service around the globe. However as much as this development is preferred by the industry, a major concern is that maximum of these startups fail within the five years of their inception. There are various well documented reasons for this recurring rampant situation, some of which are illustrated before:
PRODUCT: This essentially refers to the product or service that the startup aims to offer. For any enterprise, startup or not, to succeed it is key to make their offering relevant and catering to the needs of its target customers. Failing this the chances of a startup succeeding are negligible and this is the thing most startups fail to nail. It is of utmost importance that startups nail the market research to ensure that the innovation they are bringing has an audience to support the profits in business.
BUSINESS ETHICS: Professional Interactions are hard work in themselves and startups need to appreciate the same more than they should. Establishing concrete business relationships on delivery and high performance rather than instant results and short term goals.
REPLICATING THE WEST: Every country has its own startup ecosystem and replicating Uber, Amazon and Alibaba won’t help which is where most Indian Startups fail. Snapdeal is the latest addition to the category. Every country has a different customer base and different consumer reactions which startups need to research and analyze the same before launching operations.
STRONG BACKUP TEAM AND LEARNING FROM FAILURES: Every venture faces difficulties in the initial years and in face of daunting circumstances it is important to have a well rounded team trained in crisis management as well as a lesson to improve from these failures.
It is extremely crucial to learn from the mistakes made however it has often been found that in spite of clear indications of failure like low traffic and no profits startups keep moving in the same direction in hope that they are gonna have a major eureka moment and their offering will woo the target audience which is generally not the case. It is essential to figure out the problem and address the same as soon and as well as possible.