WHY DO

ENTREPRENEURS
FAIL?
- PRATIK,
- DEEPRAJ
- DEEPTAMAN &
- JUYANAL
Globally
INAPPROPRIATE PLANNING

• Without prior planning, an idea is just an idea and no

matter how innovative and fruitful it may sound, the
results will not be satisfactory.
• Planning is just not limited to financial budget and
investment, it also relates to finding the target population,
marketing the product and services, and keeping in mind
the risks that come associated with it.
LACK OF SKILLS

• The fascinating stories of the business world inspire

thousands of individuals who dream of becoming
successful like Steve Jobs. However, there are numerous
differences between the successful entrepreneurs and the
ones who fail.
• One big difference lies in their business calibre. The kind of
practical intelligence or street smartness required in the
field of business is certainly missing in such entrepreneurs.
INADEQUATE FUNDING AND POOR
SALES
• Most entrepreneurs find it difficult to raise funds at the
right time, and as a startup, they need a financial backup
at every stage. Most of them fail at anticipating the
financial assistance that would be required, while others
start swindling the financial institutions, which leads to the
big institutions backing off.
• The poor sale is one repercussion of this situation, as with
constrained financial resources entrepreneur avoid
implementation of marketing programs and thus end up
having limited or no sales, thereby leading them into debt.
MANAGEMENT

• The entrepreneur heading a new venture or rather the

inefficient one is somewhat oblivious of what is happening at
the lower levels of the organization.
• While it may not be a great idea to micro-manage at every
single point, but keeping eyes open to the ground realities is
one of the least steps an entrepreneur can take.
• In many cases, such entrepreneurs are seen to leave this on the
subordinates while paying attention to the big picture.
UNAWARENESS AND ALTERNATE
PLANNING

• When faced with adverse and unpredictable conditions,

entrepreneurs often find it difficult to stay in the game and
persist with alternate game-changing ideas.
• These ideas converted into products and can get an online
trademark registration to secure the brand’s unique
identity.
WHY INDIAN START-UPS FAIL?
 TOP 10 REASONS OF FAILURE:

#1. MISSING INNOVATION AROUND CUSTOMER’S MONEY

MAKING MODEL
Start-ups lack the exactly needed innovation to cater the problem of
customers.

#2. NEGATIVE CASH FLOW, NEGATIVE WORKING CAPITAL

Absence of adequate working capital owing to delay in cash inflow.

#3. EXPANSION WITH NEGATIVE MARGIN

Many companies without having gross margin go on expanding the
business.
 TOP 10 REASONS OF FAILURE:

#4. LACK OF TALENTED MANPOWER

Lack of energetic and talented people to execute the plan and vision.

#5. SCALABILITY WITH RECURRING REVENUE MODEL

One needs to create a strong base of regular customers to maintain
recurring revenue.

#6. MIXED MARKETING SIGNAL AND WRONG POSITIONING

Most Indian entrepreneurs don’t know how to position their product in the
market.
TOP 10 REASONS OF FAILURE:

#7. RELEASING PRODUCT AS A LAGGARD

Indian Start-ups launch their products so late in the market that the market
becomes saturated.

#8. SAVE YOURSELF FROM GETTING OUTCOMPETED

One needs to observe the competitors and be prepared to tackle them.

 TOP 10 REASONS OF FAILURE:

#9. MISSING THE PROCESS OF CONVERTING FEEDBACK INTO FEEDFORWARD

If you ignore your customers feedback and complaints, they will
switch to your competitors.

#10. BUSINESS MODEL OF COMPLETE ECOSYSTEM

Identify the reasons for your debacle. Correct it and streamline it. Definitely,
you will be the next unicorn.
 Overview
• Just by live is an e-distributer that connects shopkeepers
with consumer brands.
• Just Buy Live connected retailers to buy goods directly from
brands across multiple categories such as food, drinks,
personal care, auto, smartphones, fashion, stationery, etc.
• In january 2016, the company raised $20 million (around rs
136 crore) in a series A funding round from alpha capital
• In August 2017, the startup raised $100 Million (INR 699.25
Cr) Series B funding from a Dubai-based investment firm, Ali
Cloud Investments.
 Currently
• The firm’s app on the google play store cannot be
downloaded. Almost 10 users comments dating since
July 2017 on its Google play store page point towards
either a shut down or problem with the app.
• The company’s official twitter handle, which was set in
2014, is almost inactive.
• However Bharat Balachandran, one of just buy live’s
co-founders, said that the company has temporarily
been shut down and would resume operation after
raising fresh funding. Its website is currently down.
 Why it failed
• B2B e-commerce failure.
• Un-scalable business model.
• Negative cash flow.
• Poor Management Team
• Product Problems
 Cont…
1.  The company is stuck in a website mentality.
2. The leaders are setting the wrong goals.
3. There is no overall commerce strategy
4.  The sales team is not aligned with the digital commerce environment.
5. Nobody’s paying attention to the post-purchase experience
6. Picking the wrong technology.
“A wise man learns from the
mistakes of others.”