Connect with us

Startup Hacks

6 Critical Reasons Why Tech Startups Fail

Smruthi Kishore

Published

on

6 Critical Reasons Why Tech Startups Fail,startup stories,startup stories india,Inspirational Stories,#startupstories,Why are Tech Startups Fail?,Most Common Reasons Tech Startups Fail,top 7 reasons startups fail

There are quite a few startup companies like SunEdison, Gozoomo, Picturelife, Electroloom, Talentpad etc., who kick started their companies with huge investments and after a period started declining and failed to mark their presence in a highly competitive world. There are as many as 2000 startup companies raising every year and to our shock, 9 out of 10 startup companies fail in the consumer market.

Here, we give you an inception on why these Tech Startups fail.

1) Lack of skill or ability

  • Having an idea in the brain doesn’t really mean that you start your own company. First, analyze whether that idea is really enough to execute further plans.

  • Sufficient competitive analysis must be carried out.

  • Value bracket must be identified.

  • Calculate whether your idea is marker worthy

  • Stick to the handful resources you have.

  • Analyze if your product will be unique for customers.

  • Experienced and efficient employees must be on board.

2) Poor cash flow

  • Diminished finances and poor cash flow play a pivotal role in the failure of Tech Startups.

  • 6 out of 10 startups run out of cash after setting up a company and they eventually seek funding help which further affects the company.

  • Inadequate administration, scanty finances and deficiency in sales and finances are the major reasons why companies run out of money.

3) Inadequate marketing

  • The heart of your business’ success lies in its marketing. Profit or loss of your business depends on successful marketing.

  • A successful marketing campaign can be expensive too. Many think marketing does not play many roles in business.

  • One must be aware of website developments, public relations, print and broadcast advertising and the use of as many available resources to promote your product.

4) Lack of administrative experience

  • Proper management is a key to a successful business. Proper management requires experience. Challenges like personnel management, crafting and executing a company’s strategy need experience.

  • An experienced management team is clever to discover tactics that ensure company’s success in the marketplace.

5) Marketplace Stagnation

  • The business industry is a fast moving place. What is in demand today becomes out of date within no time. This is the major reason why tech startups tend to fail

  • The time taken to diminish is almost less than the time taken for the business to get established.

  • By the time a startup gets suitable funding and start their business, they enter the market only to realize there is already tough existing competition.

6)  Poor IT Infrastructure

  • When it is about tech startup companies, these cannot survive without an IT setup and support system.

  • Startups need entire infrastructures such as powerful servers, connections, computers and workstations for employees.

  • Because of these sophisticated networks, many tech startups outsource certain sections of their work.

    The tech industry is one of the hardest nuts to crack. If you are planning of establishing a tech startup, think wisely before investing and invest the right amount in the right place.

Writer, dreamer and feminist. Smruti Kishore likes what she does and does what she likes. She's a passionate journalist obsessed with words and writing the world a better place.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Startup Hacks

How To Deal With Credit Stealers At Work

Smruthi Kishore

Published

on

How To Deal With Credit Stealers At Work,Startup News India,Startup Stories,How to Respond When Someone Takes Credit for Your Work,How to Shut Down a Colleague Who Takes Credit for Your Work,7 Tips When Someone Takes Credit For Your Work,How to Deal with a Credit Taker

At every work place, there are several dynamics. However, to narrow down the topic here, there are two types of people to pay attention. The first are the kind who make sure they get the credit for their work. The second is the kind who pretend to be your best friend at work and end up shoving the knife deep down your back when you turn around. When people come and try to burst your bubble about the work, you feel betrayed. Why not? You put in the hard work and there is no credit coming your way. A certain Mr. X has this problem and he wonders how to deal with such a situation. If you face issues like the unassuming Mr. X, then these tips could work for you!

1 Take it as flattery 

The saying, “imitation is the best form of flattery,” did not come from thin air. When working, it is quite easy to take credit from other people. However, when people chose to take credit for X’s work, it clearly meant he was brilliant at his job. Take it as praise for your ability, despite there being no quantifiable praise directed toward you.

2. Outdo Yourself 

Every time someone takes credit for your work, it makes you want to push yourself harder and outdo yourself every day. Mr. X learned this the hard way and this made him so much better at his job than earlier! Think of Apple in this scenario. Samsung is always trying to be on par with Apple and seems to do a good job with the imitation. However, Apple remains undeterred and works at making sure it gives its fan base something new to look forward to with every phone!

3. Take a look at your insecurities 

One of the main reasons credit stealing happened to Mr. X was because of how insecure he is with his work. Are you fuming that someone took your credit for something? Why? Is there an insecurity that has been unveiled, which led you to be so infuriated? Have you been looking for praise as a validation of your ability in something? Realise the “Shakti” in you and take let the world know you are not to be taken lightly!

Everyone has a point of view. Everyone puts in the same (some more) effort into their work. Give credit where credit is due and only take credit when you know your work is flawless and perfect!

Continue Reading

How To

Why Is Competitive Advantage Important For Your Start up?

Published

on

Competitive Advantage Important For Your Startup,Startup Stories,Startup News India,Good Startups in India,Positive Motivational Stories,Startup Competitive Advantage,Most Important Competitive Advantage,Startup World,Startup Business Idea

The very first thing a start up does before flourishing in the marketplace is, develop a market plan! The market plan comprises of many factors, however, the most important is competitive advantage. So, what is a competitive advantage? It is basically anything that sets your business apart from another. Any firm requires a competitive advantage to make its presence felt in the business marketplace. Only then, can you differentiate your start up from other existing firms!

The significance of competitive advantage!

The start up world has been evolving with each passing day! The competition is getting intense like never before. So, how do you create superiority when compared to your rivals in the business market? Develop a brand recognition that a company either delivers quality products at a lower cost than the competitors or, offers various services at a greater value when compared to the competitors! Ensure that your products or services are better and best in terms of quality! This could create popularity among the consumers and they would spread a word which in turns makes your brand recognizable. Consumers could recognize your brand easily and prefer choosing you over others! When you establish an effective brand name, customer base becomes extremely powerful resulting, in customer loyalty. Isn’t that pretty much any firm would love to have? Having your customer come back to you over and over! Apart from this, when you establish an effective competitive advantage, you could develop the reputation of offering the best service or support in the industry which allows your company to charge more for your offering! This makes your investments in the firm all worth it, right?

Listed below are the parameters that you should consider while developing a competitive advantage for your start up!

  • Quality of the product/service
  • Pricing
  • Marketing
  • Innovation

For example, the famous fast food chain McDonald’s competitive advantage relies on a cost leadership strategy! Likewise, the technology giant Apple, is quite famous for its innovative products! This is how you differentiate your company from others! You discover and develop a unique strategy for your firm! However, at the end of the day, it is exceptionally important to keep a track of your firm’s growth in the marketplace! Find out what is working and what is not! With time, if something doesn’t click then work on it along with your marketing team and implement the change!

So, if you develop a great competitive advantage in the market, you could survive in the long run and become a market leader! A competitive advantage could make you or break you! In today’s competitive world, standing out from the crowd is essential! The best strategy for your company is to focus on improving the quality of your product or service so that it is universally recognized as being superior to anything else available! So, choose the path wisely in order to create a better competitive advantage for your start up! 

Continue Reading

Startup Hacks

Here’s Why Hiring Millennials Is A Good Idea For Your Company!

Published

on

In the upcoming years, millennials will become the largest employee demographic around the world. Millennials are big hustlers who embrace their work with passion and dedication. They love to explore and opt for new adventures. They basically have a sense of fulfilment with regard to everything they desire to achieve. They are highly motivated and have a zeal inside to accomplish their tasks. Their aim is to climb up the ladder of success with immense knowledge and become wiser. However, due to various reasons, millennials find it very difficult to land a good job.

Gone are the days when money was the only motivational factor of a career. Millennials are highly cost effective. They work for lesser pay when compared to the regular workforce. They are pretty much focused towards embracing newer opportunities and progression. Not only that but they are also self driven. Alongside, they are team players! They love to collaborate with people and they get along easily. This work ethic helps all businesses grow as millennials are tolerant as well. Apart from that, they are highly creative with their ideas, generally, think out of the box and come up with the best solutions and ideas for the company!

Hiring young minds helps to keep your company up to date with the latest market trends. From marketing to finance, they excel in almost every field with their intelligence and smart work. You could build a relationship and offer millennials an opportunity to grow with your company and in return, they will reward you with hard work and determination.

Listed below are the reason why hiring millennials is a good idea for your company!

  • They are proactive
  • Easy to work with
  • Follows up the latest trends
  • Highly cost effective
  • They are fun to work with
  • They are optimistic
  • They are techno junkies

Today’s competitive market demands the best talent possible! So, in order to grow your workforce and attain maximum productivity, your company should definitely consider hiring millennials!

Continue Reading
Advertisement

Recent Posts