In India, with executives across the board looking to branch out on their own, 2015 may be dubbed as the year of the Start-up. As more individuals take the plunge, here are some aspects that might derail a young venture.
- Running out of Cash:
Your idea, pitch, execution may be brilliant, you may even have gotten the numbers right. But in the real world most people don’t pay on time. Some eminent business houses have perfected this practice, to garner larger discounts.
Tip: Till your bargaining power in the Market increases, budget additional 20% to your operations costs for the first 6 months
- Hiring the Wrong People:
You may be able to channelize and train people to increase their productivity by 10 to 15%. But as a start-up training people will take time away from your key focus. Getting people that naturally exhibit the personality traits for success in the designated role is the only way to create a great team
Tip: Don’t be afraid of interviewing a high number of people, the rewards will be tangible a few months down the line.
- Lack of Passion:
Even if it’s your dream, conducting the same tasks day after day with little scope of deviation with limited rewards can be deeply dissatisfying.
Tip: Look for variation after you have finished your fixed tasks, Example Tweet about your business or look at any physical activity post work.
- No Need for Service or Product:
Trying to tap into latent demand, or creating demand is something we all dreamed about in business development class, but unless you have the cash to sustain the endeavor, things can go from bad to worst very soon.
Tip: Talk to prospective end users before taking the plunge
- Using your immediate network for Business:
Typically banks and Insurance companies recruit people from B-schools belong to HNI backgrounds. Some are kept on to serve the bank while others solely used to pitch banking and finance products to their immediate contact base to sell Banking and Finance products.
Your immediate network should only be used as a last resort to prop up your business during tough times.
Tip: Referrals are great, but using your immediate network as a base to start your business is playing with fire.
We hope this information proves useful and if you have any other ideas you’d like to add, leave them in the below comments section. And most importantly, cheers to a successful you.