It is a Start-Up World. Every morning when I get up and grab a newspaper to read, I see a new start-up with new and wonderful products. Today morning the news which really brought a smile on my face is “Flipkart hits $1 Billion GMV”. Isn’t it a great news for Indian e-commerce industry. I am a strong believer of starting something on your own and when I read about companies raising huge investments for their expansion, it is motivating.
But let’s face the real world now. Do you think all the start-ups are able to sustain? Do you think all the start-ups have their strategies in place before even starting their operations?
You have to ask yourself, why do you want to start your business?
-Is it money?
-Is it fame?
-Is it because you think it’s cool to start your business?
– Do you want to solve a problem?
– Are you bored of your job and you want to do something challenging.
-Or is it because your friend started his business and you want to prove that you can also do that?
I feel you should know the reason why you want to start something on your own. If the reason is only money than my dear friends, you should just continue to do whatever you are doing. Money is a motivating factor but it should not be the only reason for your venture. I keep interacting with my friends and colleagues, and I feel disheartening when they plan “Ferrari” even before they have started working on their ideas. I am not against a person buying a “Ferrari”, but the motive behind starting your business. In fact a person should concentrate more on his product/service that he plans to offer. If all your strategies are right, no one in this world can stop you from buying your dream car/home.
I keep following new start-ups and I work only for start-ups and help them formulate their sales strategies. I have seen many start-ups failing within six months of their launch. There are many reasons; I will mention few important ones:
– Lack of vision
-Lack of market research, I have even come across companies which does not even know what their competitors are doing. What pricing are they following?
-Founders inability to find a target market for their company.
-No discipline, by this I don’t mean dress code n all, I mean work discipline.
– Lack of founders involvement in business. If as a founder of the company you are not getting involved in business, how do you expect your employees to do that? I have seen failing companies founders think that their job was only to start the company and get some investments.
– Not hiring the right resources.
– Not keeping the track of expenses. It doesn’t mean you have started the company and you can spend flamboyantly on your business trips and other things. Keep a track of your expenses, do not spend unnecessarily, as it is said “Penny Saved is Penny Earned”.
Last but not least, your product/service will not sell automatically. You have to push it to the market even-though “YOU THINK” your product/service is best in the market. It is important to show the value to the customers. Nothing sells automatically, even to sell the well-known brand in the industry you need to put efforts, after all it is a competitive world.
“Chase the vision, not the money; the money will end up following you.” –Tony Hsieh, Zappos CEO
Make your team feel respected, empowered and genuinely excited about the company’s mission.” –Tim Westergen, Pandora Founder
“If you’re passionate about something and you work hard, then I think you will be successful.” –Pierre Omidyar, eBay Founder and Chairman