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Thursday, March 23, 2023

Avoid these mistakes if you want your startup to be successful

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The originality of the idea, a founder’s enthusiasm, and the relevance of support services are some of the areas where the least acknowledged startup blunders occur.

With the introduction of the startup ecosystem, the world has witnessed two sides of the globe — one of success and one of failure — all over the world, including India.

A lot has been written and argued about the various flaws that contribute to startup failures, such as a bad concept, going it alone, no or insufficient preparation, lack of focus, ineffective leadership, irresponsible spending, launching at the wrong time, and so on.

Yet, the scope of this discussion touches on some flaws in the Indian startup environment that are not discussed or acknowledged as frequently as they should be.

Regardless of these considerations, a survey conducted by the IBM Center for Business Value and Oxford Economics predicts that 90 percent of Indian businesses fail within five years of their inception.

Among the causes for their failure might be the sort of industry or business, the geographical or market objective for business, and the founders’ abilities, attributes, and track record. These are some of the less-discussed locations where startups go wrong.

Before commencing work on the business plan, the concept must be properly thought through, pondered, and studied, with a stronger emphasis on the pros in detail specific to the company plan rather than assuming it would be the same as the original. These dreamers considerably contribute to the failure rate.

Needless to add, such entrepreneurs lack abilities, leadership qualities, topic competence, or experience, all of which assure failure. As a result, if a good idea is not thoroughly implemented, it may fail.

Finance, accounting, human resources, information technology, and other tasks are commonly disregarded by entrepreneurs in the early stages of their businesses. People with commercial and financial knowledge must work closely with the founders to understand the concept and devise a viable approach.

Ultimately, a business plan must be both viable and enticing to investors. In reality, internal IT plays a crucial role in defining internal technology requirements, tools, and systems to ensure a fluid working environment.

It goes without saying that hiring and onboarding personnel who are competent and dedicated, but more importantly, who fit the firm’s culture, is vital.

Even if the founders want to onboard resources or outsource services, the founder must have a fundamental understanding of these operations, or if there are several founders or co-founders, they should assume leadership of the function with which they are most familiar.

They must comprehend the principles of taxation and other compliances, financial tools such as cash flow management and valuation at a minimum, resource planning, onboarding procedures, and technology tools if they want to steer their organisation to success.

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