Success stories are celebrated over and over again, aren’t they? But why do we shy away from the failed ones? Why don’t we converse about those not-so-successful stories who have invested the same amount of brainstorming like the ones we celebrate now? Experts at Atomberg Technologies, the maker of Atomberg fans and leading BLDC fan manufacturers in India, share the most common scenarios for you to learn from.
- Differences with co-founders:
Lack of communication and conflict of interest among the founders can be a reason to dissolve the firm. Search to get a right team, a cohesive one for that matter too is another reason for failure.
- Desperate to find funding:
The fast risers are always need in to get extra backing. But in the run to get the investments, quality of the business is compromised and that leads to failure.
- Lack of deep Knowledge:
Pirate’s Kitchen, a theme based dines café was closed down due to their limited knowledge in the hospitality business. Hence, you must be thorough with the research while getting in the business.
- More competition and less traction:
Problems like lack of funding and to be in track with the emerging market can also lead to failure. There is so much of competition in the ecommerce industry that consumer can easily find a substitute if you fail to deliver the product.
- Lack of out-of-box content:
The thing with today’s world is when you think of an idea, fate says 10 other people are about to execute the similar idea. Hence you must be right on your toes with the content curation.
- Lack of Passion:
Who says Money is not important? Indeed it is. But what is wrong with passion? Entrepreneurs today are in for fast and quick money, but they lack the enthusiasm that is much needed to run the business. You must be charged up with the electricity that sparkles in your team and guides them to earn the best.
- Wrong side of marketing:
FTW was a website that sold sunglasses with sarcastic messages written on them. The main reason for their failure was lack of marketing. You need to understand the crux of your business and choose the right methods of marketing. Make sure a right proportion of money is spent on advertising. Don’t be a miser when it comes to Marketing.
- Don’t make it a half-hearted effort:
The young India is bustling with ideas and is empowered to do the same. However after the initial grand launch, entrepreneurs tend to lose interest in their own effort. This is one of the sad reasons why startups dissolve early.
- Spendthrift attitude:
With the great investors to fund, startups tend to spend a little too much than necessary. This might lose the quality of product and fast clearing of bank balance. Hence, you lose the ownership of start up.
- Afraid to take risks:
Starting up with something, is naturally the biggest risk someone can ever take. However, after the initial stage, entrepreneurs get into little softer side and sidetrack themselves to get their hands little dirty. Challenge yourselves friends, you never know what life turn out to be.
Hence these are some of the top reasons for failure of startups. Moreover, startups should be about people who come out of their comfort zone and challenge themselves. Nevertheless, we always have something to learn about.
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