Things to Avoid from Letting Your Venture Meet its Doom

- BY Jaspreet Kaur
Feature Writer, BusinessEx
- |
- Apr 01,2019
- |
11 Mins Read
A cliché “startups grapple for survival in the initial five years” is massively known in the industry. As a result, when an entrepreneur introduces himself as a startup owner then people, essentially industry minds, questions his ability. In the first place, setting up a company is a big deal for first-time entrepreneurs as choosing the right business idea and executing it in the right manner are both extremely important.
Even though business plans are implemented as decided; sometimes, they are loopholes in the system or say, the need of plan B. Making the plans and strategies fool-proof is significant for businessmen or else, they may lag in the race.
Pitfalls to Avoid
The initial days of a startup company are the golden ones as the entrepreneur’s zest is on the peak during that time. Companies work aggressively in the beginning to survive in the business ecosystem; later, as the stability is attained, the startup works on all the pain points. Once the profitability becomes constant, many companies stop toiling and begin to think about business expansion and revenue numbers.
Such drifts, from customer-centric to revenue-centric, are mostly taken by all the business ventures; owing to which, gaps in the system appear that are not identified for a long time. Overlooking business-related problems can ultimately lead to business failure. Besides the cash crunch, there is a multitude of other problems that arise in the business.
- Problems in Coping with Partners
For setting up an organization, the entrepreneurial hands should have expertise and capital. As a result, most companies are founded by conjoined hands than single entrepreneurs.
Before establishing the company, it is imperative to find business partners with whom one shares mutual interests. More so, the co-partners should be trustworthy and should guide each other well in the business-related matters.
To avoid any breach or disagreement, one should check one’s prospective business partners on certain parameters and subsequently, take the decision.
- Bootstrapping Plan
Business organizations essentially need money for growth as well as survival. If an entrepreneur starts a business with a meagre amount then he will be earning the revenue in the same proportion.
For earning higher, the entrepreneur needs to invest more money in the business or seek investors for the same. Operating a pea-sized company for a long time does not guarantee success and good revenue. Thus, the company needs to look for external investments and, accordingly, approach investment capitalists.
- Lack of Foresightedness
For predicting the business environment, one needs to monitor the market and plan things in advance. If one starts the business today, then one needs to map out business plans and strategies for the next ten years now.
Usually, new business owners plan things up to a period of one year or so and later stop planning ahead. Owing to this, their companies stagger and fall down before completing the five-year tenure.
Therefore, entrepreneurs should emphasize planning and strategize than achieving profitability in the business.
- Not Willing to Adopt Changes
The business ecosystem is highly dynamic and thus, an entrepreneur needs to be prepared to adopt the newer changes. An entrepreneur who remains adamant to a certain business idea and abstains to change the course, ultimately, gets shoved off the race. To keep the business afloat, a business owner should be adaptive and embrace changes which yield out positive results in the business.
Avoid the aforementioned problems in the business as they can lead to business shut down if not fixed immediately. Further, it is important to keep one well-versed with the changes happening in the industry as it will help prepare the business in advance against unforeseen events.
More from Jaspreet Kaur
5 C’s Entrepreneur must be aware...
Getting a Loan is a difficult task so one must be prepare...
July 11, 20173 Min Read
What incubator provides startup...
Startups need incubators for their overall development...
January 10, 20183 Min Read
When Is Debt Better Than Investment?
An entrepreneur must consider lending as an option...
January 17, 20183 Min Read
8 Food Business Ideas Pick Up Steam...
Seeking business opportunity in the food industry then...
January 18, 20183 Min Read
How to maintain a good business...
A good relation between mentor and entrepreneur builds...
January 20, 20183 Min Read
How online networking helps small...
A one stop solution for all business related problem...
January 22, 20183 Min Read
Why invest in the leisure and entertainment...
Investing in the leisure and entertainment industry...
January 23, 20183 Min Read
Why you should invest in a startup?
Investing in a startup is the fastest way to get a...
January 24, 20183 Min Read
When is the right time to exit...
Starting a business is not a child's play so it is...
January 29, 20183 Min Read
6 mistakes to avoid after raising...
Entrepreneur makes mistakes after raising funding which...
January 30, 20183 Min Read
What Startups and SMEs can expect...
Let's see what experts have to say on this year budget...
January 31, 20183 Min Read
Union Budget 2018: Highlights for...
Union Budget 2018 has revealed some policies that impact...
February 01, 20183 Min Read
Recommended for you
- September 30, 2021
- September 07, 2021
- August 11, 2021
Latest News & Articles
- July 11, 2017
- January 10, 2018
- January 17, 2018