Start-ups are coming up everywhere throughout the nation. Bangalore, New Delhi and Mumbai remain the main regions for many start-ups yet different regions like Kolkata, Hyderabad, Chennai, Pune, and so on are also on this race and not a long way behind. We can see many successful start-ups however the reality is that 80% of new start-ups are put in the category of failed startups in India. It’s a very sad reality. There can be many reasons why a start-up falls flat in the initial year of his launch and never able to recover and lastly it has to be closed.
Here are some reasons why do startups failed in India.
1. “No Market Demands”
A major reason why do startups failed in India, is that they do not realise the problem of their being little or no market for the product that they have built. Product/market fit is essential. Maybe they’ve figured out a solution to their own problem and didn’t consider that other people didn’t have the problem, too. Maybe there were already better products out there. Or maybe the market just wasn’t ready for it.
Sometimes there is a market but the supply of the products in the market is more than the demands in the market.
The market timing is wrong for Startup India PPT Program. You could be ahead of your market by a few years, and they are not ready for your particular solution at this stage.
2. “Run out of cash”
Running out of money before you can settle anywhere. Even the lucky companies that got funding can also find difficulty in surviving themselves in this competitive market, because one cannot depend on the funding and on the in-hand cash if he is not generating any capital from it. The total saved cash will also run out if you does not fit yourself in the market and become a part of it Startup India PPT.
3. “Not the correct team”
Many times, in a rush to launch their product early, new start-ups tend to hire individuals who have almost no enthusiasm for the business. This leads to disappointing results as the people working never give their best for the business. If someone has no enthusiasm, he will never think that this is his business and the success or failure of this business has also impact on the entire team. If he or she just thinks about his personal growth, he will never try to give his best. If you cannot recruit and motivate the most talented people for the jobs on which the company’s success depends, then you can’t think of success.an individual person hard work is not enough for the start-up success .it depend on the smart and hard work of the entire team
4. “Ignoring unnecessary cash burn”
Many entrepreneurs eagerly read about how easy it has been for other start-ups to raise millions of dollars and think that they will be able to do the same. So they always ignore the rate at which they are burning through cash, and assume that when the day comes to replenish their investment, investors will come on their doors to write cheques on their name.
The best entrepreneurs spend only on essentials and are always networking to meet investors and they view fund raising as a full-time job starting at least six months before their companies run out of cash.
5. Getting out competed easily
There can be many reasons for getting out competed in market easily either because it’s one of the big companies doing exactly what you do or smaller companies killing you with a thousand little bites and doing the same work in less amount because they do not have so much investment , getting out competed is the reason why do startups failed in India.
6. Pricing/Cost issues
The best way to figure out how to price your product is to put a price on it and see what happens in the market, whether the demand of the product is very high which suggest you can increase the price or whether the demand of the product is very low which suggest that one need to lower the price. While calculating company’s costs you have to balance simultaneously while simultaneously that neither your product is too expensive and nor too cheap?
Unfortunately, one reason why start-ups fail is because they can’t balance this. It’s a balancing act, but most start-ups either overrate the product or underrate it and tipping to either side can mean failure for your company.
7.Quality of product or service is not good
Many times, start-up Founders just come up short when it comes to quality of the product. That could be because they don’t actually know what they’re doing or sometimes they are little concerned about the quality because they are so much engaged in just delivering the product. But in the long run this can ruin the name of your company if the quality of the product is not satisfactory. This could also happen because they didn’t understand their field properly before jumping in and results in failed Startups in India.
8. Lack Business Model
They are very, very necessary for the success of any start-up. Unfortunately, many start-ups failed because they didn’t learn this lesson soon enough.Any start-ups should Create a business plan first so that you can stay focused and remain stick to your long-term goals Business plans are typically very long, and it requires time to draft up and objectively view the feasibility of your business. They cover everything from what your business does to your long-term goals along with an analysis on your target audience and examination of your cash flow. Once you have the plan in place, you can really focus, stick and work according to that.
9. Poor marketing
No matter how great your product is, it’s going to fail if no one knows about it. Poor marketing is also a major reason for failed startups in India. While you don’t necessarily need a professional PR team at the beginning, learn the mistake of the failed start-up pile and don’t ignore marketing.
marketing is as important as the product. If you don’t market properly, no one knows about your product and so no one can buy it, even if it is the best product in the world. Spreading the word may seem a waste of time for many individuals, but it is fundamental for a business to survive in this competitive world.
10. Ignoring Customers
User feedback is also very important for any startup journey, from the initial stage to final stage. There can be multiple reasons why any concept doesn’t work. The most important one is that one missed the product market fit. One should never ignore the customer reviews, because they can actually learn many things from it. We should never forget that a start-up owner can never think from a customer’s perspective. So, to think from customer’s perspective, their feedback is an important part
Mooze Tech is also an IT company which is supporting start-ups with the help of Startup India PPT Program in every possible way either by helping women entrepreneurs or by supporting new startups.They are not leaving a single chance to support start-ups in every possible way.
Great content! Super high-quality! Keep it up! 🙂