Heard of that start up which had a great idea ? But with time, it began its downfall and crashed miserably? There are various reasons why that happened. The reasons for the failure differ in India and in silicon valley. The cultural differences and the consumer's preferences in different geographical places can compel the start up to fail. Some strategies work for few but the same ones won't work for others. There are few blunders which have proved to be common grounds as to why start ups failed! Lets have a look at few Indian startups who started on a high note but failed to crack success:
1. Pirate's Kitchen.
Pirate's Kitchen founded by Gaurav was a fine dine theme based restaurant. It was not scaled up efficiently. Lack of profound knowledge in the hospitality sector, according to the founder was the reason behind the failure. In this time when the hospitality field is blooming and there is tough competition, it is necessary to have a deep knowledge about the field you are entering in. Concentrating on a particular thing, have prior knowledge and instead of waiting for the right co-founder, go ahead and take the risk are some of the important tips by the founder.
2. SASLAB Technologies.
Founded by Saurav Karmakar in the field of Information Security Services and Products. They suffered problems of lack of funding, hiring the right team, stagnant growth with respect to market rate. Genuine market research and market survey is necessary for a start up. In addition to that building a coherent team is important. But refusing to give up, the founder is on their way to restart the business!
3. Follow Up Manager
The founder Vikas Mulchandani created this product which would keep a check on the employers who run small companies. There were various reasons for its shut down mainly implementation of technology too advanced; it was a difficult task to shift customers to software from paper. The other reason being that the co-founder was not able to dedicate appropriate time towards the start up. According to him, the best professionals need to be hired for the work, he had capital crunches and hence used more 'part timers' in order to save money. Also, the founder and co-founder should be equally passionate about the product, lack of passion will lead to crashing of the start up.
The founder, Vinay Mehta found Virtuplus which was a website of ecommerce for niche goods. The reason that it crashed was that it could not compete with the market leaders and thus had to shut down. An important tip by the founder is that raw sketches and rigorous research is necessary before entering the market.
5. Late night food
This is an example which teaches us the importance of capital in the startup. A strong financial backing is important for a successful start up. The company provided late night food delivery service, bouquet and other important items that you will want in dark hours. Scaling up the idea with proper mentorship is critical with satisfactory capital.
These are the indispensable situations that can be avoided in your start up. Regular communication, strong capital backing and sticking to the vision of the product needs to be the priority for any start up. Don't you think so?
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