India is a young country that is brimming with promise with a vast population of budding entrepreneurs. A study from Weforum.com revealed that Indian entrepreneurs are the youngest in the world, with 72 per cent of them aged below 35 years.
This has led to a start-up boom as brand-new companies emerge daily across various sectors, especially in the technology sphere. In terms of tech start-ups, India is Number 3 in the space following the US and the UK. Moreover, a lot of Indian start-ups across multifarious domains are quickly gaining international acceptance.
Any start-up is built on the foundation of a dream, supported by the pillars of a vision. However, without a concrete plan in place to build and sustain the enterprise, the start-up may be doomed for failure.
Forbes reported that 90 per cent of all start-ups fail, so how does one ensure that his/her start-up is part of the other 10 per cent? In my experience, I’ve identified three distinct factors that must be taken into account to determine how successful a start-up will be:
Product-market fit:
The popular definition of this concept is ‘being in a good market with a product that can satisfy the market’. In simple terms, the product that you offer your customers must satisfy a pressing need and not the other way around. Many times, aspiring entrepreneurs make the mistake of looking for a niche in the marketplace after they launch the product. This is a definite recipe for failure.
So, first identify a problem and then create a product that can solve this problem. A customer will opt for your product only if it enriches her life in a significant way. This core principle determines whether a start-up will succeed or fail.
The perfect team:
There’s an element of truth in the popular adage“team work alone makes the dream work.” It’s necessary for every start-up to employ professionals from diverse backgrounds with varying levels of experience and with various skill-sets to keep a startup ticking at maximum efficiency. And while some may believe that strategy and planning constitute the main focus area of a start-up, you will need a team to execute the plans as well. Even Steve Jobs needed it.
A perfect mix of both can be the engine that keeps your start-up ticking over time. A motivated team is the fuel you need to reach all your goals.
Burn Rate:
When a startup receives funding, there may be an impulse to spend a lot of it on elements that may not yield dividends in the long run. In the pursuit of growing the business, it’s possible to incur unnecessary expenses. It’s important to keep a check on the company’s burn rate so as to not burn through the initial funding carelessly.
The ideal situation is to reinvest the capital you earn from selling your product, to grow your business. A balanced approach is the most judicious one for you.
As per Vishal Kejariwal, CEO & Co-Founder of Taxidio Travel, “There is no sure-fire mantra to ensure that your budding start-up will grow to be a multi-million-dollar enterprise. But following these steps will put your startup on the right path. And when you have a steady business plan, you can make your company stand out and prosper from among the multitude of competitors in the current start-up boom. A planned approach is always the best approach. As the saying goes, “failing to plan is planning to fail.”
Ultimately, the core product offering and how much it benefits the end consumer dictate the duration for which your start-up will dominate public consciousness.
Authored By Vishal Kejariwal, CEO & Co-Founder of Taxidio Travel India
