Do you have an idea for starting a business? Are you moving on the right track? Do you know every year more than 50 lakh startup companies are getting registered? But the question is, how many companies are surviving and shutting down? The number of companies shutting down is more than you could imagine. Why is it happening? Here are some reasons why most startup companies are shutting down.
As there are a lot of companies launching in a similar field, there is high competition hence a startup may face various challenges in running the business. They do not understand how to reach their real customers, how to get the attention of their customers, how to target them, and don't even know what right decisions are to be made at the right time. As the challenges go high they can’t even keep up, so many companies are dropping out. Only the startup companies who had uniqueness can survive in the industry.
Success is short-lived and expectations won’t end. Most of the startups are expecting to achieve their goals in a short span of time. Some may achieve it but here comes the real trouble after achieving the goal. Most of the startups would be stagnant once they achieve their short-term goals. Hence they fail to work for their long-term goal which may result in shutting down the business.
3. Right Candidates :
Choosing the right candidates for the right job is the most important factor that needs to be done in every startup to achieve their goal and develop their strategy. Each candidate with good ability makes a better team and a better team makes a good result. This is how a company should be working but failing these makes company results go down.
4. Finance Support :
Most of the startups don't plan for proper financial support as a result they can’t even survive. Finance support is needed in every stage of the development of a startup. If it is not channelized properly surviving will be very hard.
5. Digital Era :
We live in a digital era hence startups need to adapt to digitalization and new technologies so that they can grow and develop their business with the help of technology. We are well aware in this covid scenario where most of the businesses which were already adapted to digitalization are still doing well but those who had failed to adapt to digital couldn't survive much. With the help of digitalization, most of the work can be completed remotely. Everything made simple with digital technology. Startups in order to survive in the industry they must be updated to the latest trends and digital technologies.
“Growth is never by mere chance; it is the result of forces working together.” We Smart Enough Solution here to help you with your business growth. Every problem is a gift — without problems, we would not grow. We will stand with you in all the processes of the digital transformation of business. We have our best-experienced professionals to analyze your business and create the best strategy for your business achievements. Feel free to contact us, we are here to help you!