For those who believe in hoisting the sail only when the wind is fair
Start-up culture paints a fine example of what ‘survival of the fittest means.’ Even if the land is fertile for the booming proliferation of start-ups, few manage to survive. Business is all about strategic coping with the major shifts in paradigms and start-ups are no exception to it.
Here are the four major threats every start-up faces which when not dodged or manoeuvred cunningly could spell doom:
Loopholes in Partnership and Decision Making
Partnership is crucial to the success and hiccup-free functioning of a start-up in the long run. Resourcing trustworthy and credible partners is perhaps one of the key challenges of a start-up which further toughens this battle to survive and find a strong footing. Poor partner and decision-making abilities not merely plunge a business venture into the nadir of depth but might as well enable fraudulent activities and unethical ways of reaping profits. This requires acute vision and intuitive skills to find collaborations that do not imply a death blow to the survival and expansion of the start-up.
Lack of Market Reach
Inadequate reach in the market means reduced profit. This catastrophe is prompted by several factors, the chief among them being:
Low market demand
Saturated market
Zero planning to build a bridge between the business and its market
Inadequate or wrong estimate of cost and expenditures
When start-ups fail to chalk out clear-cut strategies for establishing a strong market presence and reaching out to potential customers, it is a sinking ship scenario.
Burnout and Subsequent Loss of Vision
Those who are at the helm of a start-up tend to lose their zeal too early in the journey. This results in a distorted vision of what and how they plan to achieve. This disillusionment leads a start-up, whose position could have been salvaged still, to go haywire. In a fiercely competitive start-up culture where companies are compelled to thrive using minimal resources, zeal, strategic vision, and passion play a key role to put up a good fight.
Poor Market Timing
Well, sometimes, even a brilliant idea fails to work if timing is bad. In history, even concepts deemed to create a buzz have failed. Investors inevitably bail. While it is a tricky choice to strike at the right time, striking too early or too late risks total jeopardy. It is therefore essential to brainstorm the perfect time—to carefully weigh the factors that determine if the timing has the potential to trump at all.
