startup in people’s minds

Most startups do not fail Because they lack ideas or funding. They fail because they think like a startup & not like a business. I know it looks very complex. So look, In today’s date What is the definition of a startup in people’s minds? One such company that has a big name. An entrepreneur who has articles everywhere. One brand whose valuation is more than 1 billion dollars. Until these things happen with people, Noone gets the startup to feel in the startup. And this is where the problem begins.

why does a startup fail?

Have you ever thought, why does a startup fail? Which is a mistake, Because which entrepreneur needs to close his shop. And most importantly, What can we do? Because of this, we don’t do such mistakes. And in this video, you will get to see that side of the startup That is not known by anybody. Have you ever thought, Where does the startup failure start? From ideation. I know what you are thinking, If a startup idea is bad then the startup is going to fail. What is the new thing in this? Well, it is not like that. Ideation does not mean a startup idea. Ideation means thought process. This means how an entrepreneur sees his journey. For example, there are two people Jyoti and Nishu. Jyoti wants to make a billion-dollar company. she wants that his articles should be printed everywhere. she should have a big name. her brand valuation should be more than one billion dollars. And on the other side, there is Nishu. Who wants to create such a business, That provides value to the society, along with it should be profitable. Now, look what is the difference. Now listen to this very very carefully. As Jyoti wants to make a billion-dollar company So She searches for an idea, That gives him a billion-dollar company. If that idea is not feasible then to it is ok. But the billion-dollar company should be made. Now, these two things happen. Either Jyoti will think of something very unique. She will think extraordinarily unique. Or in place of thinking unique, she will keep on waiting for a long time. And no one will take action. On another side, Nishu wants to create a business That is focused on value and profitability. So he creates a business, That focuses on delivering value in the market. and along with that pays attention to profitability. Because you can get many things that deliver value. So Nishu takes quick action. and his vehicle starts running. Business does not happen because of thinking. But because of your doing. Selling momos or running an Amazon store Are they not a startup? They definitely are. But the problem is by watching the stories of entrepreneurs We have considered that startup means very unique. Startup means billion-dollar valuation.

Startups start with what you know

Practically not everyone can make Google, Facebook, Swiggy, zomato, and Zepto. So by watching all these success stories, Getting worried is not a solution. There is only one solution. You start with what you know. Valuation of billion dollars is made or not made, But there is a guarantee of one thing, That your vehicle will start moving. The second and very deadly mistake, Confusing between research & assumptions. Often we give our assumptions the name of research. As in court media reports are not admissible Similarly, Instagram stories & searching on google cannot be said as startup research. If you had some problem or you saw some problem, Then start to solve that. Thinking that you are doing a startup. But before that, it is necessary to see that, How many more people are facing that problem? Have you talked to people? Have you conducted any surveys? Have you traveled to different places And analyzed the market scenario over there? Often we give our assumptions the name of research We try to move our story forward. and guess what? We fail. So doing research is more important than taking action. I know what you are thinking? If we do research, then how should we do it?

Ideation of startup

First of all ideation. In your idea, it is necessary to check these 3 things.

Number 1, your idea should be simple & practical.
Number 2, Your idea should be executable. Is it something that you can’t execute?
Number 3, Your idea should be desirable. Means the thing you trying to create Do customers need it or not?

Second thing, Feasibility analysis Before implementing any idea, Studying its feasibility is necessary. Is it economically feasible or not. In your economy the thing that you want to provide, Can that be afforded by people or not. Number 2, Financial feasibility.Do you have that much money? Or how will you arrange the funding? To execute your idea. And last and most importantly, Technical feasibility. The thing that you are trying to create Is it technically feasible or not? It is like this, that your technology is so advanced That you can’t implement it today. After both these things, One pilot market test should be done. To check your executability, Firstly make 1000 customers. From this, you will know that Your idea is actually feasible. Can you implement that or are you living in an illusion? All these things are done. After this what should we do? 2 things, Number 1, Market analysis. The industry that you are trying to go in Firstly check that it is the sunrise industry or sunset industry. That means, what is the growth potential over there? And number 2, competitor analysis. Closely analyze the competitors.

What is their COCA?

COCA That means the cost of customer acquisition. With how much money do they acquire the customer? Which technology are they using? What is the competitive advantage of your competitor? What is the thing that makes their business special? How much funding do they have? From this, you will know that, If they sit for cash burn, Then for how long can, they burn the cash. In all these things if you get some guidance, Then there will be a huge difference in your results.

startups ignore networking

Many people while doing startups ignore networking.I believe that networking is the most powerful tool. the mistake, Playing it all alone. If you are playing a game alone,Then it does not matter how good you play. If there is a team in front of you, Then you will definitely lose. Business is a team sport.If you are doing all things alone, Then you are not a startup or business owner But you are self-employed. Many people start They even get a little bit of success. But they never think of making a team.

startups core team

Everyone does not know everything. So it is very important, That from time to time You educate yourself through business field learning resources. Interestingly,The starting 12 people of your business decide What will be the future of your business? And many people do mistakes over here. Now the question is how to hire good people?

So your core team should have these 4 things.

Number 1, your core team should be very reliable.
Number 2, your core team should be goal-oriented. It means that your vision and your goal should be visible to them & should be able to work on it.
Number 3, Purpose-driven. Your core team should be purpose-driven. It should not be money-driven. Because if someone gives them more money, Then they will leave your team. And because of this, the loss will be yours.
fourth and most importantly, In your core team, all people should be action takers. There shouldn’t be anyone who just creates ideas. Everyone should create ideas, But also focus on implementing them.

startup dependency on funding?

The mistake is startup dependency on funding. If your startup is only dependent on funding, Then you are at high risk of failure. A business’s first rule is profitability. If there is no profit then there is no business. If in your business there is a low scope of profitability, Then you need to rethink. In today’s date by using lean fashion methods Your MVP means the minimum viable product you make and test the market. For this thing, you don’t need huge funding. I know what you are thinking. OLA, Uber, Swiggy, Zomato, blinkit These all were loss-making startups But they are still working. And this is where 99% of people are wrong. And now I will show that side of startups,Which is not known by anyone. Now listen to this very very carefully. In an untapped market, one guy searches for an opportunity. After searching for that opportunity, He creates a small startup. As the startup starts performing good, By watching the growth potential of that startup, Many venture capitalists fund that startup. You just focus on your growth. You earn more and more. We will give you the money. After receiving funding, As the startup starts getting successful At that many startups starts coming into the market.

A venture capitalist invests in startups

The market starts getting saturated. But have you thought, How do these many startups come into the market? Well, These startups are also funded by the same venture capitalist. Who previously funded that startup. I know what you are thinking. These startups are loss-making. But then too venture capitalists give them money repeatedly.One venture capitalist invests in two different startups. Startup A and startup B. Consider that startup A is profitable. Now, this startup will have to give more taxes. Whereas startup B is funded by the same venture capitalist. Now, what happens? Consider that this startup B Is facing many losses. But these losses,He is growing through it.It means by burning the cash they are growing their business. So in these cases, They will not need to pay taxes. And moreover, they will have more money to spend. Because the company that is making a profit They are already paying taxes. And the second case,Losses. Venture capitalists funded both the startups. Startup A and startup B, Now, after this using the same money Both startups compete between themselves. Both startups give heavy discounts to their customers. So that they can grow quickly. By repeated cash burn, both startups acquire customers. Because of this, they show losses on their balance sheet. And as a result, they do not need to give any tax. So basically both startups are in loss-making. But both startups, are growing their market share. And who is investing money? Venture capitalist. At the end of the day, the question remains profitability. If there is no profit then there is no business. Startups loss-making style runs in the market until Until the competition is not reduced in the market. And who gives support to this competition? Venture capitalist.This means on one side venture capitalist funds the startups. So they can dominate the market. And finish the competition. And thereby funding other competitive startups They increase the competition themselves.I know what you are thinking. What is their benefit in this? Well, listen to this very carefully. Soft bank, OLA, and Uber. Is investor in both these companies. And Softbank has invested in snapdeal also and Flipkart. Basically this venture capitalist, By investing in both competing startups Reduces their risk. Because if two people are fighting or 10 people are fighting Then anyone among them will win. And when someone wins, These venture capitalists earn more money. And the losses that they get by investing in other startups Those are recovered. Taking funding is not a bad thing, But being more dependent on investors’ money Can be proved very dangerous. Tapzo and ask me bazaar Both startups are big examples of this thing.

startups Unplanned scaling up

Many people among us do one mistake from these two.

Number 1, they start scaling from the start in the startups. Which means I want to make it big and big. I want to make a startup huge in any condition. I have to grow my business.
Number 2, they can never scale. Any business scales up when it is fundamentally strong. If any business’s fundamentals are weak, It is just like you are making a 50-story building on wet soil.

The best way of scaling is First, to win the small market. Win the small market. Become the king After that start expanding yourself. Firstly, dominate your local market. After dominating one small area Go into the regional market. After dominating the regional market, Focus on the national market. Now, we will capture India. And once you capture the national market, After that make a plan for international expansion.

Startup Wrong customer identification

Wrong customer identification. Find the right customers. Not everyone needs your products. Sell the products to those who need them. I know what you are thinking. How to find the right customer? Why are we not able to find these right customers? Well, I will tell you why. When we segment our market, At that time we can’t do proper customer profiling. And the result is, We are not able to identify the decision-makers. That means the person who will actually purchase our product. Now, why does it happen? Well, the reason is There are many types of customers. While doing market segmentation.

We need to keep 3 things in mind,

Number 1, what is the size of your market? Is the market very small?
Number 2, what is the buying capacity of people over there?

Is it like this, that there you going to sell Rs.100 product And people can only afford to give Rs.10. And last and most importantly, Narrow down the market. It is important for you to narrow down your market. If you focus big market from the start Then you cannot serve anyone. After segmenting the market customer profiling is done.

Now, mainly customers are of two types.

Number 1, low-cost customer. These are those customers, To acquire them you will require less money. But they will give you less revenue. They won’t give you too much.
Number 2, premium customers. To acquire these customers you will need to spend a lot. But once you get this customer, Then they will give you more revenue, And maybe take products from you frequently.
Startups never identify the decision-maker

you know what, Here is the biggest mistake that they make is, They never identify the decision-maker.

As a decision-maker, you need to identify these 3 roles.

Number 1, who is the influencer? Who influences to buy that product?
Number 2, who is the decision-maker?
Who is making the decision to buy?

Yes, now it will be purchased. Last and most importantly, Identify buyers and consumers. The buyer is not always the consumer. And the consumer is not always the buyer. For example, consider that there is a kid of 8-10 years old. Ok, and he is going to buy chocolate with his mom. His mom is going to pay the money. But chocolate is going to be eaten by the kid. So the consumer is the kid and the buyer is his mom. Once you do all these things, After that, it is necessary for you to identify, What type of consumer is your consumer?

Consumers are mainly of 4 types.

Number 1, High ticket. These are those customers who will spend more with you. They will buy a good amount of products. So you will have to spend more on them to bring them.
Number 2, Growth-oriented. These are those customers who took fewer products now But maybe in the upcoming time, they will give you huge business.
Number 3, One-shot customers. These are those customers who will come to you once. After that, they are not going to come.
fourth and most important, Recuring customers.

These are those customers Who are powerful and important customers for your business. Because these customers will give business repeatedly. They will repeatedly come towards you, And in fact will bring more people to you. In business, everyone needs some type of support. And this support, You can’t take it from normal people.

Conclusions

In today’s date, we often see that This startup is for this much and this startup is that much. But in the initial days when the startup was struggling, Then there is no one to help them. the biggest mistake is the mistake that we not only make in a startup But also in our life. And that mistakes become the biggest reason for our failure. Many people when seeing something that fails, Then often quit that thing. By saying ourselves that Maybe this thing is not for us. Or maybe we can’t do this. But no one thinks of listing down our failure reasons.

We do this because The moment we list down our failures, Then you will get to see your truth. You will see your mirror. Which people don’t want to see. And interestingly if you make a habit of listing your failures, Then there are very high chances, that the next time you try Then you won’t repeat those things. And because of this, your success chances increase. Between a failed startup and a successful startup Quitting it soon factor is very important. But yes quitting it too soon does not mean, You will become too rigid. How it will not happen? I will make it happen.NO Quitting it too soon means Instead of being rigid, you be tweakable. This means if by one way something is not happening Then change the way. Don’t change the goal.