If we describe the startup experience in terms of the words of the famous tech companies, like Facebook, Netflix and Slack and for that matter even LinkedIn network, it is all about arranging for some funding and opening up an office. But, in reality the task of starting a startup is not that easy an experience. It is quite difficult to sustain a life in a startup.
But, you must be wanting your business to achieve a long-term goal and profitability. You simply cannot run your startups, only on the basis of dreams or just with funding. The thing that you strive for, is a nourishing formula which is not at all elusive or expensive to bear with.
Reasons for Failure of the Startups
- First of all what is needed from your side is an understanding on why your startup is such a failure, but you see many others with astounding success.
- As per surveys conducted, we find that every two out of the five startups die around a period of 20 months and about a period of time when they have raised a fund of around $ 1.3 million.
- The entrepreneurs must find out what is the reality that they need to face and eventually what will make them work smarter.
Now, let us explore the reasons for which the startup business usually fail.
The main reason is unable to raise the finances for your new business. You must not be reluctant so that it scares away the investors.
Generally, all of these startups revolve around a team of highly skilled professionals. The team must stay versatile, no matter whatever is the problem in hand. The team must be extremely flexible and willing to adapt to changes and must exhibit the ability to recover quickly. Taking up a new marketing strategy, adopting some more technologies and rebranding of the product are some of the qualities needed by the team in the startup company. It may so happen that startup companies need to make efforts again and again and get it restarted all over again.
Another important reason for the failure of the startup copmany is the inability to draw more customers. You must make it sure to invest more time with your customers and get their valuable feedbacks, so that you can further improve your product, before its is actually launched in the App Store. Moreover, the users must be checked at each stage.
Finally, the last reason for the failure of the startups is building a product that does not have any demand in the market.
Characteristics of a Successful Startup
Here, are some of the characteristics for a successful startup:
Resolution of the Problem
The marketplace for a particular problem handled by the startup companies may be saturated. But, if you are building the startup on the strong foundation of an unique idea, then there is always a high likelihood for the app success. It is important to gain a niche for yourself, as you address more of such unresolved problems.
Working With Professionals
You must avoid to hire the less experienced workforce as working in startup company can be extremely pressurizing and they must not buckle under the pressure.
Understanding Of the People Around
Have patience with your workforce and hire the best among the professionals. Make sure that each and every person in the organization are well taken care of, as everyone happens to a contributory factor for the growth of your business.
Finding the Right Partners
Success of most of the startup businesses are attributed to thriving on a complementary partnership, when your partner will be possessing a requisite number of skill-sets that you may be lacking and which is required for the success.
All the above factors will build stamina in your business and the resultant strong foundation will lead to achieving, more than you thought was ever possible.