The journey of a Business Entrepreneur starts with the inception of an idea. However, it requires meticulous planning and a foresight to sustain a start-up. Let’s take a look at various issues which makes 90% of the Start-up close down within the first five years.
According to a report published by Entrepreneurial India, “Despite India’s entrepreneurial strength, as many as 90 percent of startups fail within the first five years.” The 6 prominent reasons highlighted below by the 100 venture capitalists underline the common reasons which all the Start-ups face since their inception.
Have you ever wondered why so many Business Entrepreneurs give up on their high-flying Start-up ideas?
Business Entrepreneurs are guilty of one too many of the above-mentioned mistakes which leads a Start-up to disarray. It is necessary to identify the leakage points and take the necessary steps at the earliest.
Of late, there has been a significant rise in the number of Start-ups. While it is a welcome change in an ever-growing economy such as India, the statistics paint a somewhat somber picture. What we tend to forget is that while it might be easy, to certain degrees, to brainstorm an idea but to make it a profitable enterprise is no mean feat.
So, without further ado, here’s how to sustain a Start-up:
1. Technology is thy friend
Technology integration aids in a seamless operation. There are plenty of Automation tools in the market which assists a Start-ups to adopt a neat working module for effective results.
The fierce competition gives rise to new tools, strategies and ideas to better the existing tricks of the trade.
The opportunities brought forth by the Internet of Things, Augmented Reality et al are plenty. Artificial Intelligence, for example, is already being integrated to offer seamless customer experience and marketers are salivating with the future prospects.
A well-researched integration opens up a plethora of opportunities for the Start-up to flourish.
2. Networking is here to stay
In the Start-up culture, ignorance breeds failure. A Business Entrepreneur has to be constantly on toes to be in sync with the latest technology, strategies and be aware of who’s who of the business world. Lead generation, for example, is one of the by-products of Business Networking.
If nothing else, you may find just the inspiration you seek when you converse with the like-minded individuals. So be it Business seminars, workshops, lectures etc. make sure to mark your presence.
3. Cut down on unnecessary avenues
So, you have finally implemented the million dollar idea. But, how do you put restrictions on unnecessary wastage of resources? Let’s say, it is easy to hire people to waste money but to get concrete returns is what everyone aspires to achieve throughout. The only way to cut down on unnecessary avenues is to identify the aim and aspirations of the respective Start-up. You will have a clear picture once you evaluate Startup aspirations and accordingly divert the resources.
4. Share the responsibility
Every entrepreneur has his/her set of strengths and weakness. Now, for example, if you are not social it would be wise to align with a like-minded professional who shares your vision and isn’t averse to the idea of networking even if it involves weekend cocktail parties.
Also, inexperienced leadership remains one of the prominent failures for the Start-ups. The leadership has to be calm amidst unfavorable circumstances and a partner who has an adequate experience and expertise can easily weather the storm on your behalf.
Partners come along with their set of expertise in the form of contacts, experience, and actionable advice which yields fruitful results. So, don’t overburden yourself rather, align with like-minded individuals to expand your business horizon.
5. Carefully choose the people you hire
As rightly put by the American Businessman Ray Kroc, “You’re only as good as the people you hire.” The employees are an extension of the Start-up aspirations. It’s not expected from the management to err and hire wrong or incompetent professionals who’ll only pivot the Start-up in the wrong direction.
Also, there’s a lot to learn from the mistakes of others. In the last few years, many Business Entrepreneurs failed to establish their enterprise due to unforeseen events. All of it could be highlighted in their inability to adopt robust changes in sync with the changing times. So, make sure to implement the above-mentioned tips to sustain a Start-up with success.