Why startup fails-ecommerce example

I work for an e commerce start up and these are my observations why startups fail.
Now a days start up like flipkart , snapdeal, shopclues, ask me bazar want to sell
their companies to amazon or Alibaba which we were told these companies will be
fortune 500 companies. Flipkart and snapdeal fired many employees in last 6
months to reduce their costs which hired very aggressively in 2014-15 but they are
firing them after an year.
What really went wrong?
People come up with great ideas but most of them fail in execution
Most of these entrepreneurs come up with great ideas but they lack
understanding of practical issues due to lack of experience. Most of these
companies do trail and error methods, so chances of failure are very high as
those ideas are not tested before.
No Monetization planning, too much funding and higher valuations
Young entrepreneurs are lacking monetization strategy, when they have
funds they are spending money without thinking of future. Higher
expectations and valuations are also major reason. High cash burns and
incentives when cash rich
Making products having no commercial value or no one wants
If there is no compelling enough market proposition or your product is away
ahead of target market or lagging behind market
Technology:
The product might be outdated and no longer validated in current market
scenario.
For listing an product amazon needs just scan the product where as snapdeal
is following very
Tedious process for listing
Cost of customer acquisition and retention
Most online companies are failing due to high cost of acquisition and
retention of customer experience
High cash burns is not liable model for customer accquisitiona nd retention.
Snapdeal and flipkart made very costly mistake during 2012-15.
Poor Logistics:
Logistics is very important to succeed in online market, as logistics is very
costly. Flipkart and amazon coming up with their own logistics helped them
reduced costs and returns, where as snapdeal did not. Due to this logistics
prices are higher in snapdeal and lost competitive advantage

Customer experience:
Customers experience should be prime focus now a days. Great product with
delayed delivery or execution will lead to loss of customer. Bad customer
experience will result in business failure even though they are having great
product and systems.
Flipkart easy return or snaapdeal easy return policies are aimed at better
customer experience
Lack of data:
Lack of data or wrong data in terms of customers for that product or over
estimating customer base.
Example: Promoting some product customer doesnt want will result in poor
sales

Legal challenges:
Start up dont dwell into legal issues and their idea may not be legal. For
example flipkart facing ED case for FEMA violation and snapdeal is facing
legal issues for selling sex toys and medicines online without proper
documentation

Food On Wheels
Consumption of fast food is increasing in modern world. Food business is having
100% margins but in todays highly competitive market it is very difficult to
differentiate one outlet to another.
Market Analysis
Today in India trend of fast moving environment created demand which serves
quality and tasty fast foods which offers reasonably priced food and no waste
of time.

The main reason for starting a food truck is low cost for setting up restaurants in
prime areas and being close to crowd. Food trucks level the playing field.
The chief issues facing any are capitalization and staffing. With a food truck the
overhead is marginal in comparison to a mortar and stick building. Large
restaurants take massive amounts of financial wizardry to stay afloat.

Objectives:
To establish presence as a successful food truck
To make quality foods to serve middle class
Being most recommended food joint
Custumer needs of the Targeted market:
Every three months on people demand changing the menu and bringing eaters choice
Mission:
Efficient and superior customer service
Customer satisfaction
Have a great food selection
Market segmentation:
Youth and teenagers
Software employees ( office goers)
Families
Strategy and implementation:

To be at right place at right time

Create an appealing and entertaining environment with good quality
All menu items are moderately priced for that area
Vehicle should be attractive
Marketing:
Distribution of pamplets near by offices
Billboard Advertisement
Internet and social media marketing
Sales Strategy:
Interacting with customers directly and know their feed back
Quality will be the key sales driver
Evaluating food choices for popularity
Financials:
We will be needing 10lakh for setting up an full-fledged food truck
Vehicle cost- 6,00,000
Redesigning and equipment- 1,50,000
Furniture-25000
Marketing- 50,000
Chef, Helpers- 2 chefs, 2 helpers
Chef-25,000
Helpers-10,000
Driver-10000

Bill Gates Characteristic traits

Passion - Bill is very driven. He doesn't believe the naysayers. When he sees possibilities he also
sees how he can make it happen. He surrounds himself with other passionate driven individuals that
have the same vision.
Vision - He has an incredible focus. When so many others say it isn't possible, he doesn't give up.
He learns from failure and expects to fail a number of times before he gets it right. He'll measure his
progress and spend the time, money and resources it takes to succeed.
Continuous Learner - Bill is a serious thinker. He's a Brilliant man who has a passion for learning
and can't get enough. He knows he doesn't know everything, and can't get enough. He's really not
arrogant. He's willing to admit he has more to learn. He loves to read and really study. Learn about
his "Think Week." He asks people with great ideas... thousands of people to write about ideas that
will improve the world, then consumes over the course of dedicated thinking week. His brain is a

sponge, but it's also processing and analyzing based on everything else in his brain. He's the ultimate
angel investor, philanthropist and problem solver. Seriously if it's worth doing he finds a way to get it
done by having the knowledge and resources. Now he utilizes some of the best resources on the
planet with the Gates Foundation as he continues to make our world a better place.

Intelligent and Aggressive:

Microsoft bundled the Explorer browser with its Windows operating system. This was an aggressive
move by Gates to counter the business benefit of becoming a market leader.

Competitive Strategy
Gates was the first who learned to treat software as a business and was quick enough to understand
the new market conditions and the impact of the Internet on Microsoft.

Determined in Business
Bill Gates is aggressive. He has the power of persuasion. He pursues everything with singleminded determination. When he takes up a task, he does it, finishes it and only then he moves
onto something else. It is this attribute that has seen him succeeding in almost everything that he
has done in his remarkable life