India has emerged as the third largest start-up base and such ventures are poised to grow 2.2 times to reach 10,500 by 2020 despite a perception that the ecosystem in the country has slowed down in the last year, says a report.
India is in the third position just behind US and UK, and nearly 1,400 new startups are expected by end of 2016, up by 8-10% from last year, revealed the "Indian Startup Ecosystem Maturing - 2016" report by Nasscom-ZINNOV.
Starting a startup business demands hard work, energy, time, money and constant motivation from customer side as well as from within to keep the business running and overcoming all sorts of barriers.
Here is the list of common mistakes repeated by brand new start-ups, one can take notes what to do and what not to:
1. Thrifty or Extravagant:
Often in startups, the owners are found to have either of the two common mindsets-
(a) You have to spend money to make more money.
(b) I’ll spend the bare minimum until I have some decent cash flow.
This mentality often leads to the failure of the startup. One needs to be very wise when it comes to spending money. One should not hesitate to invest in good people, quality products.
Every minute detailing of expenses and profits / loses should be documented, to identify if the flow of money is greater than or lesser than the inflow of money.
2. Over Confidence:
Before initiating any business, the owner should be well aware of the movements of the market. One should know the rules, regulations as well as loopholes in the game before entering the marked area. Likewise, the startup owner should know the existing companies, sprouting companies as well as their position, capabilities, and weaknesses.
Some startup owners live in a superficially thought bubble that their idea is unique and no one can come up with anything better than that, which is why they think they cannot possibly have a competition. Their overconfidence keeps them blindfolded and ignorant till the thought bubble bursts.
3. Lack of Decision Making:
When one starts a startup firm, coming up with the idea is not enough, there is long way full of ups and downs to cover, which is why he/she should learn to take decisions not on a personal level but as a team.
Some startups lack the quality of decision making. Hiring low-cost employee, spending too much on decorating the office or taking too much time in unnecessary things rather than starting the work required to do.
Their unplanned journey leads them to nowhere. It is business, not a soul-searching spiritual journey to find self-goals in life.
4. Fear of Failure:
SomeSometimesr thinking, over consciousness, can spoil the game; some startups are too scared to take risk or a new experiment, which cost them in later stage.
As per Robert F. Kennedy, ‘Only those who dare to fail greatly can ever achieve greatly.’
There is no guide book to success; one might help you in not committing the repeated common mistakes but there is no step-by-step guide to success.
If you are too afraid to take risk, fight with the fear first, only them one can uncover the true potential of the startup. Moreover, the fighting spirit will provide the required push and will keep the momentum and energy up of the entire team.