A startup has become one of the most prominent topics on the list of current trends of the 21st century. Almost every youngster, not just in India, but even in foreign countries , is focusing more on a startup , rather than working in a Multi National Company or at a Government job. A startup entails opening your own company, that offers services or products new to the market, selling these products, earning money, gaining profit, and finally earning a name for oneself. However not every startup is a success and several of them fail too.Let’s try to understand why startups fail..
Obviously, everyone wants to be successful. The definition of success is related to being successful in the chosen line and making a mark by way of the same, in today’s world. It is common for people to think that, startups are the easiest way to acquire success. But the question lies in the fact that, if everyone can achieve success at their startup , why does the problem of unemployment and poverty still exist? This is a question, which needs to be answered right now, else, startups will continue to rise and many will continue to collapse, and people will suffer the consequences.
Firstly, a capital is required for the establishment of the startup structure. The expenditure however does not terminate here. Sometimes, there are startups which require even more money in its functioning. Thus, there needs to be some surplus money as additional funding if the business so requires. It may be possible, that sometimes, the owner is able to cover the expenses by himself, but many a time unseen emergencies/issues may crop up. Before beginning work on a startup project, extensive homework needs to be done. A person needs to know the pros and cons of every possible situation that might occur during setup and initial running of the company. Every step needs to be properly chalked out in the beginning itself since the future may sometimes not give time for a solution when an issue arises.
Nowadays, even kids at schools and colleges , are aiming at initiating a startup, without focusing on their studies and neglecting current affairs. But the reality is, both knowledge, as well as business strategy, are the necessary ingredients in the recipe of a successful startup.
Another important factor in the success of a startup, are the consumers and the beneficiaries of the specific startup. Obviously, every time a new brand/product comes into the market, people tend to have some expectations from it. The consumers tend to compare differences between the fresh startup and companies that already exist for similar products. After all, there are so many similar brands in the market today to compare and contrast. Therefore another prominent reason for the failure of some startups is that their products fail to rise to the level of expectation of the consumer and thus fail to gain attention, finally leading to the collapse of the startup
Therefore it is important that every startup concept is thoroughly researched, processes set in place and adequately funded. Keeping abreast of current market trends cannot replace any book knowledge of how a company runs and should be a constant learning process. Above all the quality of the product/service offered is its own publicity factor, which should be borne in mind at all times.