the most important of any entrepreneur to have at least 6 months expenses as

The most important of any entrepreneur to have at

This preview shows page 7 - 9 out of 13 pages.

the most important of any entrepreneur to have at least 6 months expenses as working capital which gives him enough breathing space to focus on acquiring new customers and building product and expanding of business requires timely infusion of capital. Proper cash management 7 CRITICAL ANALYSIS OF START-UP IN INDIA
Image of page 7
is critical for the success of the startups (Skok, 2016;Pandita,2017). A recent report paints a gloomy picture with 85% of new company’s reportedly underfunded indicating potential failure (Iwasiuk, 2016). 2) Revenue Generation Several startups fail due to poor revenue generation as the. As the operations increase, expenses grow with reduced revenues forcing startups to focus on the funding aspect, Hence, revenue generation is critical , Right management technique is the big concern. If it loses track of managing the revenue thus business eventually going bankrupt. The challenge is not to generate enough capital but also to expand and sustain the growth. 3) Team Members An important element of any startup is a team of dedicated people who aim to do their work. sincerely. A top reason for a failed startup is the absence of proper team, startups normally start with a team consisting of trusted members with complementary skill sets. Usually, each member is specialized in a specific area of operations. Assembling a good team is the first major requirement, failure to have one sometimes could break the startup (Skok, 2016). According to a survey, 23 percent startups failed because members did not work as a team and bringing a affordable talent at the right time is a challenge. 4) Supporting Infrastructure There are several support systems provided by the government that play a significant role in the lifecycle of startups which include incubators, science and technology parks, business development centers etc. Lack of access to such support systems increases the risk of failure. 5) Awareness in Markets Startups fail due to lack of Awareness in the markets. The environment for a startup is usually more difficult than for an established firm due to uniqueness of the product. The situation is more difficult for a new product as the startup must build everything from the top. 6) Exceed Customer Expectations The next most important challenge is the market need for the product, existing trends, Innovation etc. plays an important role, thus the startup must find out that the product offerings is to be best suited for the market demands (Skok, 2016). Also, the entrepreneur should have domain knowledge to face market competition with appropriate strategies. Due to new technologies that are emerging, the challenge to provide tough competition in the market. Many star-ups feels that t he biggest challenge is the need that constantly reinvent yourself and come up with a service that be able to match with customer expectations . 7) Regulations Starting a business requires a number of permissions from government agencies. Although there is still a challenge to register a company . Regulations pertaining to labor laws, intellectual property rights, dispute resolution etc. are difficult in India which takes about 30 days to comply compared to just 9 days in other countries.
Image of page 8
Image of page 9

You've reached the end of your free preview.

Want to read all 13 pages?

  • Fall '17
  • Mahvish ali

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors