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Have you started feeling that your friends are giving you wacky looks, your parents are so nervous about your future, your relatives already started doubting your marriage prospects in coming 5 years; Ahh! Fine. It is understood that you are in the finishing days of your college education and told your peers that you want to kick off your own business after college.
Few of your peers got selected for MNCs or SMEs in campus selections; few are planning to get the one-time settlement jackpots i.e. Government jobs, others joined for some courses. But you watched a lot of movies from childhood which inspired you to be out of the box, not work under someone else, or become a multi millionaire instantly (Just joking). Though you have a great vision, an innovative idea, a cool support team, you should know that success of startups currently is only 10% i.e. 9 out of 10 startups fall flat. You might want to take a brief look at what happens in the bigger picture and the background.
1. An idea can change your life. (In both ways...)
You have a great idea, but the bigger picture here is does anyone want it? If you develop a product that no one wants, then it would be like reinventing the wheel. Your idea may be great. But you are developing the products for the consumers, not for you, not for your company, and not for a brand. Consumers pay for solving a problem they have, not just to endorse a raw brainy idea. In authentic surveys, it is cleared that, startups fail because they fail to understand the market and customers. The fantasies in mind overcome the reality to imagine big but underestimate the reality.
2. Darwin’s principle applies to businesses too
(Not strength, not cleverness, response to change decides survival)
If you are so struck by the first best idea that you envisioned and are so taken by your imagination of how the business process should flow, the market changes and new trends may surprise you in the end. Vision is important, but changing according to market trends is crucial for survival in the market. If you are stuck up at sending letters to your customers when your competitors are using WhatsApp, you may not hold your customers for a long time.
3. Need for speed (Speed kills on roads, but slowness kills business)
Speed kills on roads but in businesses, the speed of growth is which decides the success of a business idea. If a startup is growing rapidly, it implies that the business is a cool success in the hot market. If your business is growing slowly, then there is something wrong with the idea at the first place. If you do not grow faster, your investors and financiers will back away from funding you further.
“If you are not growing, you are shrinking” – Bob Pritchett
4. Teamwork makes dreams work...
How perfectly you might plan your company, there are always unpredictable’s, crises, and downfalls etc which time challenge you with. Having a mature team which can handle those worst time situations is important to have sustainability. If the team is more interested in giving up rather than persisting, then you have had bad luck in finding a wrong team. In a good team, people will work for the ‘business’, not just for minding their businesses.
If “I” is replaced with “We”, even illness becomes wellness.
5. Most import one saved for last- “Money”
You have an idea but no capital. So you gather money from your parents, friends, and angel investors and start the business with premature calculations, just thinking about starting the business. But you might fall into trouble if you forget about the maintenance costs like salaries, recruitments, and daily operational costs. If the expenditure is not calculated properly, then it becomes a burden to run the business in midway and that is a bigger way of making it a flop.
If you take a loan for starting your business, then the rapid growth factor counts again. You could not repay the loan if the growth is slow.
These are several reasons why a startup idea which seems cool in the beginnings becomes a box office flop in a midway. Going through others’ failures may teach you to avoid their mistakes and understand a bigger picture. So the vision is important and understanding is as important at the same time.