From last few years, a remarkable birth of start up’s are seen in India. There is one common thing in all of them that is they are technology based. They are important to make a change in a variety of industries like healthcare, education, retail, transportation, and entertainment etc.
Startup helps in facing thrilling challenges that come from all sides and providing great opportunities to build skills etc. These play a crucial role in the growth and development of the economy in the country.
As the number of small industries is increasing with passing time, the customers are becoming more analytical. With the increasing competition, it’s becoming difficult to survive in the market. Many new and young entrepreneurs with the limited patience, knowledge, and strategies are struggling for the long run survival of their business.
Current Situation of Start-Up Survival
There is a heap of startups established in the market according to the current trend. Unfortunately, some of them started failing at fast pace. According to a survey on economy 2015-2016 by the government of India, there is more than 19,000 technology enabled startup in the country.
Many of these industries are started by people having a lot of knowledge and experience but they are still ending up within few years. There are approximately 1000 startups in India that shut down this year.
There are lots of factors which are responsible for the failure of the start-ups. Some of them are listed below:
- Timing and Audience: One of the important factors in the survival of startups is the timing of its launch as time decide whether it will go upward or downward. It is necessary to have a target audience for its survival. Because without an audience there is no one who caters
- Impatient Founders: The person without any experience in dealing with huge pressure is one of the reasons for the failure of a company. Most of them run away when they realize that things are going out of control.
- Lack of Innovation: Innovative ideas are key factors behind the success of a business. In many cases, startups have lost their glare when they start bringing out new ideas. Hence it is important that everyone have the same vision and startup continue experiments with its products and services.
- Excessive Equity Dilution: This is also one of the reasons as many startups give the large portion of their equity in the beginning. Due to which more and more investors start pouring in it. This result in a lot of conflicts.
How to Choose the Best Start Up Idea for Long Run
One should have taken care of some things to continue their business for a long time. According to a study, 94% of new businesses fail during the first year of start up. Hence, it is necessary to choose the best startup idea as it is one of the most exciting and fundamental parts of starting a business.
You should have to choose or select an industry in which you have a passion, knowledge, and experience. The quality and profitability of ideas are two factors that are behind the success of the company.
While starting up a business, you have to make sure that idea you are choosing is productive enough to bring you profit. Here are some points that one should have to consider before choosing a startup idea:
- Products or Service of good quality so That They Have Continuous Sale: This is one of the important aspects of the long run of business. It is more profitable if you have a pool cleaning company rather than a pool building company. You should have to manufacture the quality products for the continuous relationship with existing customers.
- Make Sure That Idea is Great For Making Profit: One should need to have a high level of working capital to keep running their business through the profit. It is important to have a higher margin so that one can self-finance their growth.
- Having a Strong Team is Good Because Alone Idea is Not Enough: The ideas alone are not enough for the long run of business. You should need to have a team of professional lawyers, accountant, employee, and bankers etc. Having great team will improve the chances of success of the business.
Tips to Maintain the Consistency of Start Up’s
You should have to improve the quality of products and services for the consistent growth. It’s important to constantly upgrade the technologies used to stay at the top in the market. One of the ways that help to survive a start up for a long time is to learn from others mistake. Some tips are listed below:
- Keep in Touch with Social Media: Today’s, social media becomes a crucial part of doing business. You should always have to keep a tab on the social media sites like Twitter, Facebook etc. These networking sites are becoming an important part of the promotion of your business. This will help in gauging public interest with time so that you can tailor your services accordingly.
- Standing still and Embracing New Changes: This is important to keep changes to maintain the consistency of Start up’s. If you do not change and adapt the situation then your startup
- Hire Generalist Instead of Specialist: The entrepreneur takes a wrong step while hiring new employees. You should have to hire the person who is versatile rather than those who have a specific skill. The entrepreneur has to focus on those candidates who can have a passion for learning new things rather than the candidates focus on promotions in future.
This is an important factor that one should have to take care because employees play an important role in consistence growth of the business.
- Always Focus on Quality: Quality is an important point on which one should have to focus because high-quality services will give you an edge over every competing startup.
Above mentioned are some of the tips that one should have to follow the consistent growth of the business.