A startup has become one of the prominent highlighted members in the list of current trends of the 21st century. Almost every youngster, not just in India, but even in the foreign land, focussing more on having a startup done, rather than working under some other person at an MNC or at some Government job. In today’s world, startup means opening your own company, attracting others by their products, selling these products, earning money, gaining profit, and finally earning fame. Let’s try to understand why do startups fail?
Obviously, everyone wants to be successful. And since the past few decades, the definition of success has been modified relating it to being rich and famous. And for people, you, me, everyone, we all think, startups are the smoothest and the easiest way to acquire success. But the question lies, if everyone can have their own startup initiated, why does the problem of unemployment and poverty exists? This is a question, which needs to be answered right now, otherwise, startups will still continue to rise and still continue to collapse, and people will suffer the consequences.
Firstly, a capital is required just for the establishment of the startup structure. So, a huge amount of money is spent on this. Also, the expenditure does not terminate here. Sometimes, there are startups which require even more money in its functioning. Thus, you need to have a surplus amount of money if your startup project requires it. It may be possible, that sometimes, the owner is rich enough to pay for such expenses. But it might be possible that the whole setup is not well programmed. Before starting any startup project, a huge amount of homework needs to be done. A person needs to know the pros and cons of every possible situation that might occur in the near future. Every step needs proper manipulation at present because the future doesn’t provide time to think of a solution. Rather, for every solution, a problem can arise, during the early stages of a startup.
Nowadays, every High school child as well as a college child, has started aiming at initiating a startup, Without focussing on their studies and neglected the current affairs. But the reality is, both knowledge, as well as business strategy, are the necessary ingredients in the recipe of a successful startup.
Next thing, another’s an important factor, are the consumers and the beneficiaries of the specific startup. Obviously, everytime a new brand comes on the market, people tend to have some expectations from it. The consumers always compare the differences between the fresh startup and the previously existing similar companies. After all, there are so many brands, that do the same task and sell their products to the same lot of people. Thus, one another prominent reasons for the failure of most startups is that the products fail to stand up to the level of expectations and thus fail to gain attention, finally leading to the collapsing of the startup.