This is guest column is by Puneet Gupta, Founder & Director, Buzzmeeh.
The startup industry has seen major expansion in recent times with new businesses coming into existence every day with a specific goal – Innovation and Growth. The term startup can be defined as a new company or business venture which is built up from scratch and aims to grow further with technological and innovative assistance. Startups are also perfect examples of pure ambition and desire to make an idea click with investors and consumers in order to become successful and reap profits in the long run.
Building a startup requires rigorous planning and thoughtful consideration since all new ventures need a strong foundation in order to attain future success. To build a profitable technology startup, an entrepreneur should be able to assess the technological requirements, needs and desires of the masses and plan a business module accordingly.
Startups come in all forms and can vary in size; therefore, different sectors must be approached differently. In order to have greater potential growth, startups need to have a strong team managing different responsibilities across verticals. An excellent support staff facilitates better understanding between every party involved and minimizes friction. Therefore, entrepreneurs mostly look for personals with such key skills required to build a successful business.
The initial and most important goal for startups is growth, and for that entrepreneurs need to convince potential investors who would assist them in financing and expanding their businesses. Investors look for the best in the market and the up-and-coming entrepreneurs should possess the ability to convince them in order to gain their trust and assist in the venture’s scalability. Startups also need to come in partnership with other firms in order to accelerate growth and improve their business.
The startup ecosystem is very diverse and dynamic in nature, and unlike traditional business models, doesn’t adhere to fixed rules or hierarchy. Therefore, startups require active and hard-working personnel who can put in effort and time to build a successful business. Technological advancement is the key in facilitating growth in startups and assisting in developing the business further.
There are many startups that fail to survive the market in their first year as a business due to weak design and improper planning. New business ventures come with their own set of risks and they need a strong base in order to survive and beat the competition. This is a very competitive market and startup owners need to be aware of the latest market trends so they can take informed decisions.
Despite their genuine efforts, most startups fail to make a mark in the business world due to lot of competing players in the same sector, or unfavorable timing. Startups have varying degrees of success/failure in different sectors. According to a report by the Statistic Brain Research Institute, the chance of failure in the first year of a startup is up to 25%. The maximum success percentage of a startup was found to be 58% in Finance/Insurance & Real Estate sector, while the minimum success percentage was 37% in the Information sector. Additionally, a major reason for most startup failures was stated to be incompetence, which involved inadequate knowledge about the market structure, lack of planning, and no experience in record keeping. Therefore, a lot of serious consideration and research needs to be taken into account before building a startup.
Sometimes, failed startup owners, or re-starters decide to build their business again when they anticipate the market to be in favorable conditions. In such cases, some businesses tend to gain mild success as they would have already experienced the market and knows the aspects that need to be factored in to avoid another failure.
Technology-based startups are at the forefront of innovation and design as they provide a glimpse of how modern technology can be used to demonstrate efficiency and better standards of living. With the help of modern technological advances, many such startups have inspired people to upgrade their lives and make it more convenient. A technological advantage gives such startups an upper hand over other competing players and helps them stand out in the ocean of innovation.
Many technology-oriented startups have attained success over the years due to breakthrough innovation and greater understanding of consumer needs. People can now access all kinds of services, be it banking or bill payments, shopping, and online transactions with the help of different online service providers. Most well-known companies today had humble beginnings as startups and grew with time due to constant innovative ideas and consumer satisfaction.
With changing times and higher disposable incomes, people are living a fast-paced life and to fuel that that kind of living, better technological advancements are the need of the hour. This is a chance for technology-based startups to shine irrespective of the risks, since progressive technological ideas can help both startups and consumers to grow and innovate each other.
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