Why do startups fail in India
India today is home to more than 39k startups, still, 90% of the startups fail here. The first 3-5 years are very essential and are the time when most of the startups fail. One thing to keep in mind is that you can’t build a mansion overnight. It requires a lot of patience and hard work. So, here’s a list of common reasons why startups fail:
Most of the entrepreneurs find difficulty in managing their startup money and starts facing problems like mispricing, underestimating startup costs, lack of money from startups etc. Startups need proper time and money to run smoothly. One must add more constraints to the money supply.
We often think that our idea is the most unique one and no one in this world can ever think of it but the truth is we need to focus more on market demands instead of just having an idea. Idea is important but demands are more important than it.
A business model is something that we must always have with us. Sometimes we think launching a product, creating website and providing services is just a piece of cake. Well it is not if you’re not having a proper business model.
Ignoring customers and their needs is the mistake that we often make and realize it after the time has gone. Instead of just making your product best or your services best in the way you think, start focusing on what your customers need.
If you have heard of startups only in magazines and success stories then let me tell you it is a black box. It’s a mystery with no definite path. You must have proper market research and everything with you because you have to get your hands dirty if you want to paint your dreams.
Another reason for failure of startups is, not using upgraded technology and skilled staff. We often do inside recruitment or use less upgraded technology which affects startups a lot. However, it is very difficult for startups to deal with such high priced technology and excessive skilled staff.