I simply love entrepreneurs, not because I am one, but because of their significant contribution in rolling the wheel of economies across the world. However, considering yourself as an entrepreneur and proving to be a successful one is a totally different ball game. It takes a lot to be one and perhaps that’s why there are only a handful of those who stand victorious against the test of time and tide. For any true entrepreneur, there is no such thing as a failure; it’s either success or learning. In fact, that is why I am here with these 7 Reasons That Result in Perishing Startups, to make sure that yet another startup does not perish hopelessly.
1 Their entrepreneurs end up being cocooned
Quite often, entrepreneurs delve so deep into their idea, become so focused and consumed, totally wrapped up in their own vision that they simply lose connection to the perspective of reality. This is especially true if they don’t have some sort of venture capital firm behind them, as these keep pushing them, pouring into their ears the needs, wants and expectations of the target market, including their own. This is what can give entrepreneurs some feedback, helping them to reflect upon their strategies and direction.
2 They fail to offer some unique solution to a significantly sizeable problem
The market is densely populated nowadays with people selling so many things and offering so much that any newbie can simply be overshadowed by the big fish in the pond, which is unless your startup is able to offer some unique solution to a significantly sizable problem. So, you literally need to jump in the pool with the biggest splash to baffle your target market as well as your competitors.
3 They “blow up” their cash
From inexperience to overexcitement and mismanagement to wrong budgeting, there seem to be plenty of reasons forcing startups to “blow up” the cash they have. One thing must be very clear to any entrepreneur, there is no way a single person can pull up all of what it takes to nurture a startup in today’s technology driven and highly dynamic market landscape. Startups need to identify and rectify any leakage areas in a bid to preserve something they need the most, the cash. So, you better choose right people for right jobs for most economical payouts.
4 People appreciate concepts but prefer buying complete products
New concepts and ideas surely fascinate people, but out in the market, people as well as businesses prefer spending their money not on ideas but on complete solutions, products or services that can actually serve them their desired purpose. You need to realise this subtle difference if you want to successfully make it through as a startup.
5 The team lacks effective bonding and strength to carry on
Some of them can’t just tag along well enough and long enough to take on any hardships or challenges on the way. Some quit as soon as the initial strategy hits a roadblock, as it does quite often. Still others are out there for easy pickings only, without any real commitment to work day in and out in the long run, thus affecting the team’s bonding and commitment to carry on. This is what repels venture capitalists away from a startup the most, as any seasoned VC will tell you, they prefer investing in well bonded and well managed teams.
6 Old crocs bite hard
In almost any direction you move as a newbie, you will find old crocs with grinding grips ready to bite harder than ever to hang on to their piece of meat. Startups shall not underestimate them at any time. With tried and tested solutions already up their sleeves, they will hang in there much longer than anyone’s expectations.
7 They fall prey to bad advice
With entrepreneurship right at the centre stage of all this hype, the quantity of information available on it has overshadowed the quality for sure, making it like finding a needle in the haystack for those seeking the right information. This means the probability of entrepreneurs falling prey to bad advice from unauthentic and unqualified sources has soared unprecedentedly high. The worst part is that all this makes it extremely difficult for them to segregate right advice from the wrong one because of the sheer volume of wrong one convincing them otherwise.
To conclude, success and failure is a matter of perspective more than anything else, especially if you are ready to learn from your mistakes. Hope these tips give you a better foresight on how to lead your startup to success rather than being the one learning it the hard way.
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