Mumbai, Dec 2016 – The Indian markets are raining start-ups. These range from Retail to IT in industry type; B2B to B2C in nature of business; invested to boot-strapped in terms of being funded; these could also be rich in experience or could be youngsters just out of college; these could be doing business in either local, domestic or the global market. What’s more, these start ups could be started by folks who have stepped out of a corporate and want to start on their own or could be kids of a rich dad with an already established business empire who want to make their own mark. The reasons, backgrounds, experiences, markets and industries could all be different, yet they’re all here to make it big with that ONE IDEA which they feel is a path-breaker.
Each of these start ups are enthusiastic about how ‘different’ they are among their competition and how passionate they are about that ‘one idea’ they have. It is amazing to see their conviction when they begin their journeys. And that better be, because it is this very conviction that keeps them afloat in the early days. Lamentably, however, as days pass many of these start-ups are not able to sustain.
Studies say that only up to 5% to 10% startups become large and scale up and as much as 70% of the start-ups fail.
So what leads to such startling figures and the sad state of affairs? Most people would term the reasons to be uncontrolled high costs, and particularly, high marketing costs. Others would say that start-ups fail due to either poor economical conditions of the country or competition that entered as their copy. Some would also attribute the failure to lack of feasibility on the product or service.
So is there one way to save a start-up business from failing? The good news is yes, to a large extent there is a fool-proof way to play it safe. It is when a start-up business must have the right ‘strategy’. While strategy is a loosely used expression these days, a start-up business must essentially think through several key aspects like the right customer segment, offer, relationship and approach to begin with and several other key areas.
Hardik Harsora, Co- founder of Effex Business Solutions, a management consulting company, said, “Startup businesses must answer if their product or service is either resolving an existing discomfort, or providing an additional benefit or is it simply getting some task completed for the customer. Strategy also involves profiling the customer segment in detail. Zeroing in on what age group the customer belongs, what location, gender, their preferences, likes and dislikes. Understanding where one will find that customer segment and how therefore should the business approach them. They have to design an offer so well that it becomes tough for the competition to engulf the market. Our methodology ‘Propel’ helps the promoters of startup businesses brainstorm and think through several aspects in a scientific and logical manner. This helps the business to be safe from many stumbles that they would otherwise have on their way once they begin operations.”