Entrepreneurs have always been known as a great source of ideas, innovation and growth. Dropping college, leaving a job and then moving to starting an entrepreneurship journey has never been an easy task.
Prima facie, startups have always been seen as very risky. According to the Forbes magazine, 90% of startups fail in India alone due to the lack of innovation but that doesn’t mean putting a hand into it is a bad call.
Now, let’s take you to some of the reasons for the failure and how you can address them in your startup.
You actually have to take care of the following factors during your start-up journey to prevent it from failure:
Innovation in your business model
Innovation is one of the factors but not the only one. Most of the startups focus or try to build their business around their products or services instead of building business around the products, business process and services of the target audience.
Now, building a product, business process or services around a specific audience reduces your efforts of finding an audience. You don’t have to stand alone in the market. You have actually built a model around their business model. And this will ultimately help you build your startup.
Identification of the players in your team
Startup is not just a game of an innovative business idea, it is a game of the right planning and step-wise implementation.
Every business relies on two main factors:
And both the factors work only when you have a smart team with just the right mindset and skill set. Lacking any of which may lead to the failure of your business model. Right from top to bottom, an entrepreneur should understand and acknowledge the placement of the individual.
Individuals at the base are actually the executors of the business model or innovative business idea.
Drivers of executioners:
Keeping all the executioners aligned or keeping them in synchronized manner is again an important factor. Drivers, at the next level of the executioners, obviously equipped with the right amalgamation of mindset and skill set, know how to keep them in a team. They build a bond, team framework and a working environment that helps drivers execute the visions of founders.
Negative payments, Late payments or running out of cash
It doesn’t matter what your books of accounts, data or statistics says at the end of the quarter or financial year. Late payment is simply equal to no payment. We said so because, the next time you need working capital but you haven’t received it, you might have to look here and there for the same. This may tend to the loss of interest of investors in you.
Quickbite: Why entrepreneurs and startups fail?