A startup is a process to establish a new business by an individual or a group. The concept of the startup is to supply or provide something which is in demand. There are 11 thousand new startups every hour, which shows the vastness of this concept. However, only 10% of startups get the needed success and meet market demands. It is a long process to change an idea into reality and then establish it.
Today everyone wants a fast and comfortable life, to provide such kind of life there should be more efficient services and products. Omnichannel shopping is the best example of, how can ideas revolutionize the service and marketing industry. Startups are adding quality in life, and improving living standards.
When a startup is getting successful and expands its limit, it directly effects on the people and the geographical area. Companies like Microsoft, Alibaba, and Google have transformed their cities. There are many benefits a startup can offer, some of them are-
- Development in infrastructure.
- Opportunities for youth.
- New ideas and suggestions get entertained.
- Geographical recognition for small places.
- Providing Employment at the mass level.
The ratio of failed startups is 90%. It is huge and shows the uncertainty in the market. It is evident that every idea is not approachable no matter how innovative you think it is. First, do not mix Entrepreneurship and startups, both are entirely different fundamentally.
Entrepreneurship starts with an innovative idea, but it is not always intended to get big or need high investments to get established. Startups need to come up with highly approachable ideas and big finance to get a head start. These are the reasons behind the failure of a startup-
Failed to scale – An idea can change the world, but in the business world every idea and innovation has its own limitation. Many founders make mistakes on the scaling of the team, required finance, expansion, capital, and area this shows the lack of vision and overconfidence in decision making.
Uncertainty in Finance – Capital investment is a basic and most valuable thing in a startup. Even the most successful startup faces capital problems due to lack of product’s expansion and low demand in the market.
No Need of Product- Many startups face hard to keep up with the market because of low demand in the product. It happened due to low interest in the product, not satisfying public demand, low productivity and quality issues.
Leading a Wrong Team- A startup needs big finance as well as a team of experts which would equally visionary and dedicated to the product as the founders and co-founders. It is very important to realize that your team is your first audience not connecting with them shows a lack of leadership. A founder should understand his needs and expertise related to his business.
Marketing Issues – Low marketing strategy effects sales growth and disconnect the product to market.
A Startup’s growth depends on its design and planning. Without proper research and evaluation, it could be just losing money on nothing. An idea is just a beginning; proper planning and calculated risk are what makes a startup successful. There are 42% of startups get failed due to lack of consumer interest, 29% due to funding, 23% by team and staff’s problem, and 19% by competition. It is very critical to analyze that is market will certain about any particular product or service. Evan established product face uncertainty eventually. However, digital media, automation, and modern technologies make easy to connect with the target audience and establish a startup according to required preference.