StartupTalky

Tag: Common mistakes that Startup Founders make in their business

  • 20 Common Mistakes Every New Entrepreneurs Must Avoid for Startup Success

    A great idea can change the life but the million dollar question is, how to find a great idea. Now-a-days, every person is full of ideas which can work as a money making machine. They want to be their own boss by starting their own business. But this is not every person’s cup of tea to turn one idea into the success tale. It requires lots of dedication and patience to observe the failure. Only 10% of the ideas can be turned into startups. The half of the ideas don’t able to face the cruel reality of the world. They won’t be able to survive even a day.

    While most of the startup ideas can be found in the dumb ground with broken pieces of many hearts. There are numerous ideas, which were firstly discarded to the bin, such as IBM thought that there is no place for PC operating systems, Microsoft never believes in the big future for search engines and browsers and Google never believes in the success of social media. But today we have all of them working great and improving our life for day to day usage. So NO idea is great or small. Everything depends on your startup execution. Here are things you must be aware to avoid mistake to stop your startup from failing.

    Also Read: Failed Startups in India – A Brief Case Study of 15 Promising Indian Startups that Failed

    20 Common Mistakes to Avoid in Startup

    Today we are going to understand the 20 common mistakes that any startup owner could do and that lead them to the startup failure. So buckle up your belt entrepreneurs and add following points into not to do list. These points are formulated by CBInsights after examining every factor critically.

    1. The every startup owner wants to come up with a unique idea or product to sell, as they assume that it will boost their sale. But my lovely fellas forget one thing that, if there is no market for the commodity presents then whom will they sell the product and it’s very time-consuming task to create a new market for the product.
    2. The new startups usually have a low budget. The startups face the biggest issue to handle their limited cash and make its optimum use. The most of the startups fail because they ran out of cash.
    3. The most important part of any new venture is it’s workforce. So the other problem that new startups had to face is to hire competent employees. The team that startup owners hire should be on the one basic ground that they have to be as passionate about the startup mission and vision themselves.
    4. The new startups have to face the competition from the existing firms and most of the startups fail to compete with the already running businesses.
    5. The relationship between the cost of commodity and it’s price is very vital. The 50% of the new startup owners somehow fails to establish this relationship. Some might fix the price of commodity to high and some fixes to low. The proper balance between the price and cost is essential for success of start-up.
    6. The quality of product is the key element for the success and the startup owners who don’t put emphasis on the quality of the product, would not able to survive a day in the market.
    7. The business won’t be able to survive without a proper business model a day. Most of the startups fail because the business model isn’t appropriate or insufficient to achieve the business objective.
    8. Marketing is the main elements of modern business. The startups need to build amazing marketing strategy in a limited budget and the startups which fail to formulate an aggressive marketing strategy well you get my point right.
    9. Customers are the king and their demand is your command. The business owners who forget to cater the needs of customers, well you can say that they fail miserably and have no chance of survival.
    10. Likewise, the focus of a startup owner should be clear and their mind should work on the growth of the business. The startup founders do the biggest mistake by chasing different ideas at once and in the end, all ideas got doomed.
    11. The startup founder is the leader of the whole project and one of his wrong decision will doom all the efforts.
    12. The timing of launching a product into the market is very important. The most of the new bees forget to calculate it and this lead to their fall.
    13. Disharmony or miscommunication among the team members is considered to be a major reason for the failure of startups.
    14. The passion towards the project and zeal to work hard makes the start-up successful. A little less passion can destroy the all game in seconds.
    15. The location of the project should be selected very carefully. As a result, many startups had failed because of bad location choices.
    16. The startups who fails to capture the interest of investors have very tough chance of success.
    17. There are numerous legal formalities that required to start a new venture and most of the startups fails in this area.
    18. The owners burn out all their energy in the beginning of the startup on useless things that in the end they have nothing left, which leads the path of failure.
    19. Almost, the startups fail due to the overconfidence of the owner, as they didn’t took the advice of the experts seriously.

    Hence, the last mistake made by startup entrepreneur is that they fail to lead the team and the failure to pivot destroys the healthy startup idea.

    Although these are a few common mistakes that startup entrepreneur do, which turns the game for them. Now don’t get disheartened fellas, as I won’t leave you hanging without giving you some solutions to re-emerge your startup.

    Also Read:

    Startup Failure to Startup Success

    “I haven’t failed, I have found 10,000 ways that don’t work .”
    ─ Thomas Edison.

    With this beautiful thought let’s find some solutions. There are numerous advice given on this topic at Oxford University on the “Dumb ways to die.” success can be improved by:

    • Targeting a potentially big market at the right time.
    • Solving a real, not imagined problem.
    • The trait of success means having a clear, simple business model starting out.
    • The High-quality founders, who have a history of working together setting up. Rather, they should actually be passionate about the problem because lots of startups fail because of some silly reasons.
    • Thriftily Spending.
    • Make sure there’s demand in the market.

    Evaluate Yourself for Startup Success

    Moreover, the entrepreneur should ask themselves a few queries before launching a startup for the first time, likewise

    • Why do you think your Startup should be successful?
    • What are the unique traits of your startup?
    • What is the estimated cost of promotions?
    • How do the revenue projections look like?
    • What is your marketing strategy?
    • How will you make customers interested in your product?

    Finally after examining all these questions I think you will know the reason that might fail you. Although the success and failure are both sides of one coin, so take decision wisely when you have a plan to launch startup. Avoid the mentioned mistakes at any cost. However, not every startup get the success like Yahoo, Amazon or Flipkart but still every startup has potential in it. So be smart and launch your startup with smartness.

  • Beginners Guide: How to Start Dropshipping Business in India

    Do you ever dream of owning your business but you step back by looking at huge investments and capital of starting the business, guess what now you can own your own e-commerce store and be the boss of your business.

    What if I told you you can start your own e-commerce business with low investment and minimum capital, yes you can have your own e-commerce business with minimum capital let me show you how.

    Dropshipping has become popular in India since the entry of Amazon and Aliexpress and many Indian entrepreneurs started their business in dropshipping.

    What is Dropshipping Business?

    Dropshipping is a business model in which the retailer does not require to
    have a stock of the products which they are selling, instead, they give the order and shipment details to the wholesalers, and then the wholesaler will directly forward the product to the customer.
    The benefit of this business is, the retailer does not have to take the hassle of storing the products in storeroom.

    Benefits of a Dropshopping Business

    1. You can choose several products from your dropshipping store.
    2. The burden of maintaining a warehouse is eliminated.
    3. You don’t require a hefty amount to commence the business.
    4. Retailers can price their products as per their  preferences.
    5. There is fewer risk involved in this Business.

    Is Dropshipping Profitable in India?

    yes it is if you follow the right steps and dedicate yourself to your business, success and hardwork go hand in hand so you need to focus on your business and grow your business .

    How to Start Dropshipping Business in India?

    Now lets talk about real business so the first step to start dropshipinng business in India.

    Also read: Impact of Coronavirus outbreak on Dropshippers

    Register Your Business

    The first and the most important step in starting your own Dropshipping business is to register your business because not doing so can you land in some serious trouble with Indian authorities so first register your business to know how to register your business you can read some articles.

    Once you register a business or company, you can get lots of benefits from the Central and state governments. These include loans at low-interest rates and tax exemptions .’

    Don’t forget you will get a Goods & Services Tax Identification Number (GSTIN) for your business. This is notably important nowadays to buy or sell anything in India. You’ll also need it for payment-related formalities.

    Also read :How to Start a DropShipping Business in India Using AliExpress(10 Easy Steps)

    Open a current account

    Clearly, your in this business for earning money so you require a current account for the investments and money transfer you’ll make while you grow your business. Having a current account is recommended by the experts if you require any foreign investments or money transfer in the future so its better to play safe.

    While the Reserve Bank of India has specific guidelines for banks to offer Current Accounts, I would suggest you scout the market and find the best bank for your business.

    Ill suggest you open your account in foreign banks because foreign banks have large networks of branches and correspondent banks across the world, which makes the transaction and money transfer more effortless for you.

    Open a PayPal account

    Having a PayPal account is total up to you if you want to ship your products in different countries or you know you will deal with foreign investments in the near future so having a PayPal account is a must for your business.

    To open a PayPal account You’ll require the GSTIN number and Current Account details. PayPal will verify your bank account and other details before accepting your application.

    List the products

    List down the products you want to sell on your online store, choose the products you want to sell with the help of an expert in this business because you need to list the products that sell fast and in huge amounts so you don’t incur a loss in the initial months of your business.

    Finalize the category of products you wish to sell as a drop shipper.

    Contact supplier/wholesaler

    For listing and selling the products on your e-commerce store you require a seller from which you can purchase the items in bulk. If you wish you can contact the suppliers by yourself or you can get the help of some services which connects the retailers and wholesaler. Our top recommendation would be Aliexpress and IndiaMART.

    These services will make it easy for you to find the products and list them on your e-commerce store

    Return policy

    if you are in an ecommerce business you have to think aboout the returns, customer can return the products if it is damaged or the customer is not completely satisfied with the product so you need to have a return policy with the seller if the product gets damaged during the shipment of thart product, you also need to look into providing the refund to the customers when they return the product.

    You can minimize your returns by paying special attention to aspects like precise handling and shipment of products.

    Open an e-commerce website

    You want a platform to sell your products on, so to start your dropshipping business in India you need an e commerce website. you can set up your own site or you can use services like aliexpress which will handle everything for you.

    If you prfer to sell your products in a small locality or only limiting to your city then facebook marketplace is what we recommend.

    To expand your customer base you also have to promote your website on different social media platforms such as Facebook and Instagram.

    After you initiate your website list the category of products you want to sell on your site finalize the price of the product carefully and also pay attention to return policies that are favorable to the customer. set up a secure payment method so that if a customer wants to pay online he/she can pay effortlessly, in India people prefer COD over other payment methods.

    Now you know the steps to start your own e-commerce business get your business going here’s a small tip for you, well suggest before entering this dropshipping market study the market properly and see if the business model suits you.

    Here are some tips that will give you an edge over others

    Before entering the business study your competitors thoroughly because they are already in this business so study your competitors and learn from your mistakes.

    Select the products which are high in demand so the chances of your loss is less than normal.

    Final Verdict

    Hardwork is the most important key to success so after starting your own e-commerce business dedicate yourself in your business strive hard and you’ll get the results. there are ups and downs in every aspect of life so if you ever fail in your business don’t give up stand up and work harder than before.