10 REASONS WHY STARTUPS FAIL
LACK OF CAPITAL
People often underestimate what it
takes to build a business by a very large margin. This holds true especially
for the first-time entrepreneurs
TOO EARLY OR TOO LATE
You may be entering too late a
market which is already captured by big players, or you could be too early like
launching ecommerce 10 years back
POOR DEMAND ESTIMATION
Your idea might just be a novelty
and may not address a big pain point.One must estimate if there are enough
people to buy the product
LACK OF CORE SKILLS
People get into areas that are not
their core expertise such as a techie getting into a gourmet chain or a chef
getting into last-mile food delivery
POOR BUSINESS MODEL
While it's rare for the first
business plan to pan out the way it is written, not having a clear business
model increases the chances of failure
SPAT BETWEEN COFOUNDERS
Starting up is like the dating
period when you see only the best aspects of each other. But startups flounder
when tough times come up
SHODDY MARKETING
Entrepreneurs, especially techies,
underestimate the skills, time and money needed for marketing and customer
acquisition
BACK-SEAT DRIVING
While it is important to be open to
feedback from investors, board members and mentors, back-seat driving can be
dangerous
NEGLECTING CUSTOMERS
Customer service is the job of the
founder and chief executive. If the founders are busy raising money, they might
push customer service to junior levels
LACK OF FOCUS
Entrepreneurship is hard and tough.
By having part-time founders, it gets even tougher.There is no concept of being
half-pregnant
(The author is a serial
entrepreneur)
|
K Ganesh
|
ETM26JUL15
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