Posted 08 Aug 2019, Editor's Desk
Reason #4: Lack of Talented Manpower
If you don’t build a team of highly capable, enthusiastic, energetic, and talented people to execute your plan and vision, chances of making your Startup long-lasting would be less.
You need to work on: Competency mapping, Competence assessment of your manpower, and Convert your ideation into execution.
To boost the scalability of your business, you need to create a strong base of regular customers to maintain your recurring revenue. Many Startups go on “making new customers, at the cost of losing existing ones”.
While engaging new customers, they are unable to retain their present customers, which disturb regular inflow of revenue and consequently hurt their profitability and scalability.
Reason #6: Mixed Marketing Signal and Wrong Positioning
The main reason behind why startups fail in India is that most of the Indian entrepreneurs don’t know how to position their product in the market, who is their perfect customer and who is not their perfect customer.
They launch their product, without proper segmentation of customers through studying customers.
It is imperative to position your product on the basis of its identity, price, value, feature, and reliability after studying consumer behavior. It's marketing and branding strategy will be based on its right positioning.
Reason #7: Releasing Product as a Laggard
The untimely or delayed launch of a product is the prime reason why startups fail in India, which plays the most crucial part of its market share and profitability.
Indian Startups launch their products so late in the market that the market becomes saturated, which compels them to give schemes, discounts, and offers, and end up ruining their profit margin.
While launching your business, you need to observe your competitors and be prepared to tackle any disruption caused by them.
Reason #9: Missing the Process of Converting Feedback into Feed-Forward
Taking into account the customer’s feedback and the complaint is what helps you bring appropriate changes in your product. “If you ignore their feedback and complaints, they will switch to your competitors”.
Customer’s complaints about your product signify that he wants to be with you, but the only thing that he is expecting is to bring change in your product.
Reason #10: Business Model of Complete Eco-System
Digital giants like Facebook, YouTube, Amazon, and Android are examples of those who have built a huge ecosystem by converging all stakeholders and customers on a single platform that could cause disruption in the market if they plan to exit.
Identify the reasons for your debacle. Correct it and streamline it. Definitely, you will be the next Unicorn.
From the above 10 points, you would be able to understand why startups fail in India and direct your strategy accordingly to make it successful.