WHY STARTUPS FAIL IN INDIA?

India is home to 90% of startups that fail inside 5 years of commencement regardless of being one of
the top startup ecosystems in the world.

1. When a founder is under- confident

Certainty without a doubt goes far. The Indian founders, particularly the ones who
begin on their very first entrepreneurial journey, discover entrepreneurship a nerve-
wracking experience. A founder needs to stay positive and confident about his
undertakings, which helps in keeping the spirit of the team high, thus, comprising
to building a great startup.

Solution: Sometimes, when you need certainty, follow the philosophy of 'Fake it
till you make it' by imitating certainty, capability and a hopeful mentality.

2. When a plan of action needs advancement/ innovation

All those businesses that have been able to vanquish the startup environment are
the ones that contained advancement/ innovation. However, regardless of
innovation being the focal component of a startup, most of the startups dearth it
altogether. Indian startups are generally replicating or impersonating the business
ideas from effective companies abroad, which is one reasons why our nation has
seen a critical plunge in the foreign venture funding in Indian startups.

Solution: Attempt to utilize the business model design strategies through four focal
points of business model innovation– ideation, conception, prototyping, and
situation building.

3. When the market forte is saturated

India, being one of the most crowded nations in the world, is oversaturated with
products and services that entered the market in numerous forms ages ago. It is
challenging, but not impossible, to find an undiscovered industry in the Indian
ecosystem, which comprises a successful startup.

Solution: Try to search for market gaps and brings solutions fulfilling the gap to
the table.

4. When one functions on negative cash flow and working capital

A business should keep a constant cash flow to run his/her business easily with no
interferences. A negative working capital demotivates the team as well as results in
either shutting down the business activity because of a lack of funds or in quest of
investment opportunities in the cut- throat investment marketplace.

Solution: Negative cash flow doesn't really mean misfortunes. It simply leads
towards a mismatch of expenditure and income.

5. When one works on forceful development/ expansion

Commonly, when a startup begins working with increasing sales, the core team
often ends up taking managerial decisions with their souls and not minds. Try not
to contemplate extension, essentially until you arrive at your sufficient net overall
revenue or, in all likelihood prepare to take a dunk in the misfortunes.

Solution: Prefer not to settle on imprudent choices and ensure settling on executive
decisions while examining outcomes with your core team.

6. When there's an absence of a motivated team

A business runs effectively with a group of exceptionally motivated people willing

to invest their hard work and exertion into making the business a triumph. Build a
team of enthusiastic, vivacious, and talented people that assistance in executing
your plan and vision to transform your startup accomplishment into a reality.

Solution: Instead of driving the team, try to be a part of it, which assists with
building a bond with your colleagues, in turn, establishing a strong workplace.

7. When the feedback isn't treated in a serious way

Numerous businesses consider customers their god in India as they bring in income
and help in running their household and family. Most of the startups have taken on
customer-oriented business models where consumer satisfaction is viewed as the
critical need of the company. Take customer feedback and enhance it if you don't
need your customer base to shift to utilizing the services of your rival.

Solution: Customer input and feedback increases the value of your relationship
with them, and by enhancing their grievances, you show the significance a
customer holds in your business.
Conclusion
While starting on an entrepreneurial journey requires a degree of fortitude,
remaining steady and growing in your venture is another test that should be tended
to. Ensure that you hold your grounds while dealing with making your startup
fruitful and stays hopeful, regardless of how hard the circumstance gets. Overall,
these were a some of the reasons why startups come up miss the mark in India.