What are Startup Businesses?
Startup business is a young company founded by one or more entrepreneurs. Usually, startups follow a unique goal in an innovative way to introduce the products and services into the market. Alternatively, we can say, a startup is a company where it works in a direction to solve a problem. However, neither the solution nor the success is guaranteed. In India, the startup businesses are now getting support from the Government of India. So that the young generation can contribute something fruitful to the society with their skills and innovation.
Usually, the startups have no any hard-and-fast rules. A two year or ten-year old company, both can be in the category of startup. As the startup futures are usually very unpredictable therefore, the startup businesses look for angel investors, venture capitalists, or incubators to support their business idea. However, initially every business starts as a startup. Some of the famous and successful startups transformed into a huge brand are Microsoft, Amazon, Ford Motors, McDonald’s, and many other.
Objectives of Startup Businesses
Initial objective of any startup is to introduce the unique product or service into the market and sustain in the market with their uniqueness. In spite of that, most of the startups fail either due to lack of market acceptance, market entry timing, lack of suitable mentoring, or simply lack of adequate funding.
The ratio of successful startup is skewed. Therefore, to sustain into the market the companies try to look for financial support. However, the lack of government support for business incubation makes startup to look for outside or private support by their own. For this, they had to struggle hard and no rest or leniency is acceptable to sustain in the market due to the presence of huge competition.
The startup businesses always like to follow a unique path and idea. So that, they can grab a great customer interest and provide a satisfactory solution to the specific problem. Therefore, a unique idea requires a great moral as well as financial support to deliver their services in a defined manner. Hence, the government and private incubation centers are doing their bit. Yet the competition is very stiff and there is a pool of startup businesses in India and heading towards to change the future of the country.
Challenges Startups face
Every startup has to face challenges before kissing the success. However, by analyzing the business trends and the pool of startup are introduced in the Indian market can ease the work of new entrants. As the existing business analysis could ease the flow of work. Still, every startup has to undergo various challenges to sustain into the market.
1. Finding the Right Talent
For any small or big business, looking for right talent has always been a difficult task. However, in terms of startup it is mandatory to go with the right talent to run business smoothly. So, go through the reliable source for the hunt of right talent. Only dedicated and talented candidates can excel in startup and contribute their bit in taking business to the next level.
2. Proper Planning and Visualization
Before taking any business into the market, an intelligent businessman will definitely go for a proper planning and its future effects as well. However, a proper planning is always required to make a long term presence. In terms of budget, available resources, potential risks, and other requirements of business. Apart from that, businesses need to be aware and prepared for the condition of plan failure or business failure as well.
3. Manage Competitors
Competitors have always been the biggest threat for any type of business. Therefore, learning about existing business and their working is very important. In order to manage your business effectively by tackling the competition and any type of hurdle arises during work.
4. Risk Management
Every business undergoes unpredictable risk. However, handling all these risks and problems easily is a must for any startup business. It requires the availability of finances on miscellaneous expenses in advance. As well as, be aware to face these types of unwelcomed risks and hurdles.
5. Lack of Proper Marketing Strategy
For a startup, it is always very challenging to find out the best way to market their product or services. However, a startup requires to make good profit along with unique marketing methods, attract customers as well as, develop a trust with the customer as well. USP i.e. Unique Selling Point of any product or service, makes customer to go for it. Therefore, initially as well as lifetime business proper marketing strategy is very important.
Startups re-writing India’s GDP
Startups are contributing a lot in re-writing India’s GDP and is expected to go ahead in the near future. Every year, a number of startups introduced into the market and generates a great number of employment. As per the reports, the startups are generating more employment than PSUs or Government sector.
Apart from that, the startups are attracting a number of investor and this resulted into the circulation of good amount of money into the market. Hence, this is also becoming a great initiative of contributing in the countries GDP. This money is shared with other people (employees) and results as the wealth creation in the nation. In addition to this, such work is automatically adding up to the improved standard of living of a group of people.
With the introduction of startups at such a pace is definitely contributing in the countries GDP. As well as, will boost the growth by many folds in future too. However, on the present growth or pace of startups, the World Bank has predicted that India will become the fastest growing country as economic growth in the world. Whereas, supporting more startups will definitely generate revenue and boost the India’s economy.