Startup culture is booming across the globe. The reason behind it is that we have more creative minds, more people ready to create the difference and a majority of people wish to give up their 9 to 5 life.
While we see a lot startups excel, the number is approximately doubled when it comes to startups that stall.
As this is daunting for many aspiring startups and entrepreneurs, we have compiled a small list of dilemmas faced by various entrepreneurs. So, that the next time you work on your startup idea, ensure that you add the below points in your calculations.
Why Startups Fail: Their Big Idea Doesn’t Solve a Problem
“Everything that you think can be invented has already been invented,” the more compact and complicated the world becomes, there are more problems to be resolved. It’s observed that majority of startups and entrepreneurs favour inventing, rather than solving a big problem faced by masses. That said, it’s got to be a big problem and a way better solution than what’s already out there. An out of the box solution might do wonders for you and also help you attain what you seek.
Why Startups Fail: Empty Pockets
For every entrepreneur that manages to bootstrap a startup, there are hundreds that run out of cash for numerous obvious reasons: they don’t want to share the platter (not ready to give up a piece of the cake) , they don’t budget properly, they don’t plan for how long it takes to raise rounds of funding. As mentioned in the earlier article capital is like oxygen for any business. So, for your business to survive it’s compelling to plan for and have capital.
Why Startups Fail: They Don’t Come Up With Complete Products
Ideas and inventions are fascinating, but consumers and businesses generally buy complete products they can actually use. Ideas in some cases are just like dreams, they are charming and help boost your confidence but practically do not create any difference
Why Startups Fail: Strategy
Strategy is the only thing that can propel your business or can sink your business, depending on how you chalk it out for your business. ” Some gaps are to be expected, but oftentimes, what startups leave to be fleshed out later – little things like low-cost materials, availability of components and infrastructure – end up becoming showstoppers. It’s vital to have a rock solid business strategy if you wish to enjoy success.
Why Startups Fail: Do You Have What It Takes?
Some entrepreneurs just can’t get along. Others fall apart when the initial strategy fails, as it often does. Still others are out to make a quick buck and aren’t committed to working day and night over the long haul. Any VC will tell you, a big part of what they invest in is the management team.
Why Startups Fail: Bad Advice Or Wrong Mentores
With all the hype over entrepreneurship, the quantity of information has hiked up while the quality has sunk. That means entrepreneurs are getting lots of bad advice from unqualified sources. The worst thing about it is, when they actually get good advice that conflicts with what they’ve been told, they don’t recognize it for what it is.
Perhaps the most critical advice is: If your startup stalls, it’s worth infusing time to understand what went wrong. That’s the only way you’re going to improve the odds of making it next time. And, yes, there will be a next time. All you need to have is the zeal to never give up.