your password has been reset successfully, Please login again.

How Downfall Of The Business Takes Place

Hard work, vigilance on the market trends, and right decision-making skills help the startup to outshine its competitors
BY Jaspreet Kaur
Feature Writer, BusinessEx
Feb 25,2019

Setting up a business has become a common goal for young minds. After earning a degree or diploma in a certain field, the first thought that strikes millennials is initiating a business. The idea of becoming an entrepreneur is a dire thought which should be well-considered.

In the business ecosystem, startups are conceived as a grappling student who tries hard to outdo others. Nevertheless, hard work, vigilance on the market trends, and right decision-making skills help the startup to outshine its competitors.

The Beginning Years- The Most Crucial Time For Startups

Primarily, a notion goes in every veteran industrialists mind when an entrepreneur, who runs a startup, comes across them. Inspecting the outlook of the entrepreneur, grasping the knowledge of his business and conceiving a judgmental opinion in the mind are usual behaviours of the magnates in the meet.

In essence, the initial five years are a crucial examiner of a startups potential. In the period of five years, the newly established company faces all types of challenges. Alongside, it recognizes its adversaries in the market. So, it becomes vitally important for the startups to attain buoyancy in the five-year period.

Staggering Journey Ahead

For operating a business, the first-hand experience in the market is pre-requisite. New entrepreneurs lack this aspect and thus, fail to estimate the entrepreneurial journey ahead. After setting the business, the entrepreneurs develop multiple aspirations from the venture and concentrate on spreading their reach in the market. Excessive indulgence in the business and turning oblivion to other things going in the market sometimes bear bad results.

After being devoid of market knowledge for long, the enterprise fails to recognize newer technology developments and grasp them. Meanwhile, the adversaries take a leap over the startup and thus, startups grapple to keep the business afloat. Food Panda is one such example in this context. The food-ordering platform was initially doing well in India's domestic market but gradually, it started losing its hold as it was not prepared for competition. Further, it was investing lesser in upgrading the operations. Thus, Food Panda in India turned out as a failure and later, got acquired by Ola.

Mistakes Which Lead To A Shutdown

The downfall of the startup or even, an old business arm is unpredictable. Foreseeing aftermath of the decisions is imperative or else, the company would be shattered. In the pursuit to save the company, there are some mistakes that should be avoided.

  1. Not Collecting Feedback Of Customers

In a customer-centric business, customers should be valued the most. Since the onset of the business, recognizing the preferences of the customers from time-to-time is imperative as it helps to know when changes in the business operations need to be made.

These crucial business decisions can be taken when the company garner the feedback of customers and precisely know the demands of the customers. Failing to gauge this parameter, the company may not render first-rate products to the customers and thus, face problems in the long run.

  1. Not Creating An Updated, Useable Product

Products of the business create a first impression on the customers, thus, the product should be free of error or dysfunction. In common practice, the company tests its products multiple times either through a pilot project or approach a small set of customers. In the early days, knowing customer feedback is imperative for every component of the product, from packing to its usage.

The companies who dont focus on this key strand fail to gauge the response of customers after the launch of the product. Further, not focusing on developing the product is another oddity on the part of startups.

  1. Not Creating A Simplified Product

In the digital era, customers seek to get enhanced user experience. Keeping this mind, creating an easier and simplified product is important. If the product is massively complex then it lessens the possibilities of customers preferring it.

These mistakes should be avoided by startup owners. In essence, these mistakes are irrevocable if they are identified in the initial stage of the business.

Please add your Comment
SIMILAR Articles
March 20, 2019
In an entrepreneurial journey, a business plan comprises 20 per cent share whilst the business inves ...More
By Jaspreet Kaur
March 16, 2019
For fostering relations with customers, it is vital to keep them gratified through the company’s ser ...More
By Jaspreet Kaur
March 14, 2019
“Business Failure” can happen with every type of company, irrespective how big or old the company is ...More
By Jaspreet Kaur
March 13, 2019
The performance is not fundamentally relatable to decision-making or financing alone but it is also ...More
By Jaspreet Kaur
March 12, 2019
The internet has become an important source to leverage one’s business in the form of online busines ...More
By Jaspreet Kaur
March 11, 2019
With the encroachment of digitalization, the private lives of people have not remained an enclosed t ...More
By Jaspreet Kaur
March 08, 2019
With the evolving time, issues like gender disparity, income gap and glass-ceiling have been eradica ...More
By Jaspreet Kaur
March 07, 2019
Devoid of a product or service, no company can indeed sustain in the market ...More
By Jaspreet Kaur
March 06, 2019
Despite the preferential demands of the job-candidates, job security invariably remains an unspoken ...More
By Jaspreet Kaur
March 02, 2019
The Indian pharma industry is adapting novel technologies and medicinal practices steadily ...More
By Jaspreet Kaur
March 01, 2019
Business magnates like Warren Buffett and Benjamin Graham view the market diligently and take over t ...More
By Jaspreet Kaur
February 28, 2019
Fixed deposits, savings accounts and LIC are some of the mainstream mediums of multiplying the incom ...More
By Jaspreet Kaur