17052021, Vadodara, VADODARA STARTUP STUDIO:
- What are the main mistakes that founders do?
- How to overcome them?
- How could StartUps scale up?
- When is the right time to go for funding?
- What is the difference between planning and execution?
Over the past few years, India has seen numerous entrepreneurs rising from nowhere and creating unicorns that is shaping the world history and standards. This is partly due to the younger population of India, which constitutes many aspiring entrepreneurs than job seekers.
Understanding the same, the State and Central Government has also come up with various policies to support these entrepreneurs and channel the potential into economic success. But, there is a huge need to handhold the entrepreneurs to navigate the journey, which in-turn leads to low venture failure rates.
However, the situation is changing gradually across India and many states, ministries are coming up with policies & support systems, to help aspiring entrepreneurs.
As per the analysis conducted by VADODARA START-UP STUDIO – PARUL UNIVERSITY, where 70+ StartUps, at various stages are incubated and generating revenues in crores.
No proper team, Improper planning and poor marketing at early stages were identified as key factors of StartUp failures, but nevertheless, proper mentorship and handholding proved to help start-ups navigate the early trials of entrepreneurship.
And below is a summary of the common mistakes made by entrepreneurs across the Nation;
- There is no proper sensitization of the entrepreneurship aspects across the Nation. Entrepreneurship as a whole requires a strong character, Business Literacy (Finance, Marketing etc), Management skills, Vision, Patience and perseverance etc.
Many do not understand these basics and are susceptible to failure at very early stages of their journey. One most common perspective among many entrepreneurs is to become a billionaire rather to build something that stands the test of time.
- Building something that people do not want: Most Entrepreneurs, because of their drive to do something, tend to build a product/service that does not address the needs of the general public or business houses.
This is one of the main factors that causes the StartUp to cease at very early stages. A proper market research is needed before starting any venture, if it needs to stand the test of time and people.
- Knowing when to raise funds: Funds and Fundraising is an integral part of venture building but raising funds at the right time plays a vital role in shaping the progress of the start-up.
Many StartUps tend to approach investors and investment firms very early in their journey, but Investors/Investment firms, like any other firms have internal processes they need to adhere to.
This creates difference of perspective and the StartUp would not be in a position to leverage the investor connection, leading to cash crunch at early stages of starting up. Thus, the entrepreneur should have a proper understanding of the fundraising processes and about the right time to approach them.
These mistakes are very common and avoidable if guided by proper mentors or StartUp support agencies. And, over the past years, India has seen a rise in Incubators, accelerators and StartUp Mentors, pooling their knowledge and support to assist the Indian Entrepreneurs.
Many schemes have been put in place by the government to support the above said bodies and many private initiatives, Entrepreneurship Development cells in Universities are also coming up to assist the entrepreneurs.
It is now the duty of aspiring entrepreneurs to take every step in an informed manner, by availing the support these stakeholders and contribute to the economic success of the nation.
The author (ANTONY DINU) is working as Incubation Manager at VADODARA START-UP STUDIO and having a global foothold in the start-up ecosystem.
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