The tide has changed and so is the young and exuberant Indian youth. Also, with the initiation of startup India more and more people are getting inclined towards having their own startup and helping a cause. So far so good, right? But have you ever thought how many of us actually go on to make a real difference in the society with our idea or more precisely why is it that not all of us can have the same fairy sailing with our IDEA? I deliberately stressed over that word IDEA because that’s where most misconceptions are. Through this article, I just want to share few potholes with the familiar failings for startups which you may encounter on your startup journey even if you have a rock solid idea.
The reason behind startup?
Ah, I’m sure for most of us having a startup is merely the notion that we will earn a fortune out of it. If you also belong to the same school of thought then I’m sorry to say but the boat isn’t for you. For any particular product or idea to be able to float in the market it’s most important that it solves the recurring issue which the society is facing. Before you even think of jumping on startup idea give a long hard analytical thought on your very own idea since it has to make the currently available solution more reliable than ever. Because remember don’t try to repair something which ain’t broken.
Ambiguity of Audience
The most important thing in any venture is to know who your target audience is and does the dynamics of your products are aligned with their very interest. Often, people fail to properly analyze the fickle needs of an ever-changing audience and the product is not flexible enough to combat changing needs. This factor severely hampers your business.
Run out of Cash
Okay, this may seem as abrupt but let me tell you the initial figure which you planned to invest will run out in a blink of an eye more often than not. Basically, multiply that sum by 4 times and have it ready because when the idea is in the initial stage of deployment the cash flow will be going out on huge amount in various ways. Try to be judicious and avoid careless spending!
Although generally it is said good products don’t need advertisement but the same doesn’t hold true in case of the startup industry. Since when people start out there are already big market players in the game and for you to sustain and make a profit as a novice it can be quite challenging. And this where proper marketing strategy come to aide. You need to reach the masses through all social platforms and cater to their needs and anticipate in advance how you can further get the best for your product.
Angel Investors left on thread
Many a time it so happens that you cannot keep the investors in sync with the development of your idea. It is very important to keep in mind the interest of your investors since they are the ones who will be doing maximum funding. Similarly, make sure you don’t run behind every bet and end up rogue at the time of launching. Also, your business model should be robust because at the end of the day it’s all about monetary gains and everyone is there to have their own share pie.
Professionalism of team
This can become quite a headache in the longer run. I think you all are aware of the frustration of having wrong players on the park from your graduation project and how much vital it is to have people on the same page with same unflinching faith in your idea. There need to be faith in each others abilities and more importantly to have the knack of facing extreme situations and still having the same passion to come out of it triumphantly.
Lack of X-factor
Always before launching any product ask yourself this one question what is it extra or different that I’m going to provide which will differentiate me from the pack. Because you need to offer something which no one else can and unless that happens it’s hard to imagine you surviving the long run because your idea will fall prey to big giants.
Before you launch your product in the market make sure it provides basic intended functionalities or even you can be better off with doing some experiments on the beta product and see how the result goes. Also, you need to make sure ROI factor at least gives you something to play with because doing all these things beforehand will make sure you are better equipped to handle market adversaries and pressure.
It is really necessary to keep in mind the precise location while launching the startup because you can’t launch smart bicycle startup in the mountainous region. In short, you need to be very careful and do a thorough study of the demographics. Study statistics and choose the most favorable location not just for your product launch initially but your office too so that it is accessible easily from all corners.
Lastly Pricing issue
What if I tell you this is the trickiest thing to decide because what may seem normal may be a bit extravagant for some section. So you need to analyze how much is normal for your audience and also simultaneously sufficient for your business. Eventually, you need to make sure that you strike the perfect balance and sustain a profitable business.
Along with these vital factors, there are many other things also which causes startup failure such as marginal niche, pivot orientation going awry, getting into legal trouble, poor decision making, weak leadership. I hope this article will help you and you will try and be wise to stay clear of these mistakes.