A Look In To The Issues That Occur During

Business Start-Ups.

• Starting up a business is a major accomplishment for some business ,

yet keeping up the business at a success bar is the bigger test. There
are numerous standard difficulties each business faces whether they
are big or small. These incorporate things like employing the perfect
individuals, fabricating a brand, etc.

Recognizing and beating the normal falls and taking powerful initiative
towards businesses will assist a business with successful start-up.

Let us investigate the difficulties that new business frequently need to

manage, notwithstanding discovering answers for every one of them.
Thus, here are some of the most common challenges and problems faced
when starting a business.

Here are some of the most common start-up

challenges with the solutions.

1. Finance
Money begets money. There is no doubt about it. One of the biggest
challenges that startups face today relates to financial management.
It is a fact that small startups rely heavily on financial backups from
the so called investors. At times, when there is a cash influx, small
firms, most importantly startups tend to find it really hard to
properly manage their finances, and they bog down against the
pressure.
What’s more, when income issues hit a startup, they can hit hard,
dodging significant advancement like turning out items, enlisting
key staff, or fitting new workplaces.
You’ll require cash to flow and support activities like programming
or product development, office space, promotion, and that’s only the
tip of the iceberg. The greater part of your success will spill out from
the initial venture.

Solution: In order to address this kind of situation, start-ups

need to play a safe and cautious hand, by keeping all the cards
close to their chests. Taking help from a reputed financial
consultancy firm may really help out in managing financial
crises facing today’s start-up businesses. New companies ought
to consistently discover methods for limiting their expenses.
Invoice factoring is another method for accelerating the record
receivable procedures in new businesses. And also utilizing
accounting software to keep a tab on cash coming all through
the business is additionally a smart choice.

2. Absence of Planning
Another major key for business start-ups is proper business
planning. Poor planning has led to the failure of many businesses in
the first year. Why? Because they do not effectively put in challenges
and pitfalls. As much as your business has innovative ideas and
ambitions, a lack of effective and proper planning will lead to a
crash.
According to scientific research, planning can help companies grow
30 per cent faster. It’s exceptionally interesting about how new
companies think of entering the market without a strong
arrangement!

Solution: Before you launch the business, it is significant for

new companies to complete intensive research by examining
and researching. It is important to carry out proper research
by investigating necessary details such as competitors’ prices,
suppliers and the rest. This approach builds a solid foundation
for a successful business. Also, writing an effective business
plan helps start-ups to define their business, target audience,
operational conduct and the amount of money that it will
generate and spend.

3. Staff is Resisting Change

A good and dedicated team is everything. Lack of a proper team can
cause a business to suffer immensely. Lack of commitment can
aggravate frustration in the organization which quickly escalates
into an open conflict. If team members start making under
commitments due to the fear of being responsible or blamed for
failure, businesses will never achieve their set goals.
One individual bringing negative vitality into an office can impact
the resolve of the staff in general. Give a verbal setback and speech
to guilty parties and the following strike implies they will be
reviewed. Negative remarks and actions about your activity or the
organization ought to be kept private.

Solution: A devoted team with a diverse range of abilities is

significant for new companies to develop and succeed. There
ought to be legitimate cooperative energy, coordination, and
correspondence among the individuals from a group. This
course of action permits the individuals to help one another,
gain from one another and put a deliberate exertion so as to
make progress. A team is formed by individuals who have
different range of capabilities with identical focus which allows
for members to help each other, learn from each other, and put
a concerted effort in order to achieve success.

4. Dealing with Competitors

A fierce competition happens to be the most inevitable challenge
that start-ups face. Start-ups are usually faced with two obstacles
which are, monopolistic businesses that have dominated the market,
making it difficult for newcomers to emerge and secondly, countless
start-ups that are launched regularly in the market having
innovative ideas, so it is very much likely to get swallowed by the
shadow of other start-ups.
You will before long understand that you shouldn’t stress over your
rivals. Concentrate on what you do and let people in general —
customers, shoppers, clients, the crowd — choose who they might
want to help.

Solution: The good thing about competition is that it creates

an environment for businesses to come out with the best. To
conquer the competition, new companies should look into and
break down their specialities. They ought to be remarkable and
distinctive in approach; and ought to have the option to make,
actualize, and track their business and advertising plan. They
should be flexible and centred towards keeping their qualities
unblemished.

5. Lack of Proper Marketing Strategy

It is always a challenge for start-ups to figure out how best they can
market their products or services and have it reach a wider audience.

Solution: New organizations should be adept at making

creative showcasing plans, putting ads, and telling individuals
the value of their items or administrations. To lay it out
plainly, a great showcasing technique has vision, crucial,
business objectives. A good marketing strategy should have a
vision, a mission and a business goal. It should be able to give a
detailed explanation of the role of business products or services
in the market. A good proper marketing strategy will keep
customers loyal towards the products or services.

6. Cyber Security
In this advanced age with all the technologies and advancement
having online security dangers and threats can cost you a fortune.
Programmers are all over the place, and they are going to exploit any
loophole inside the frameworks introduced inside a start-up firm.
Here are some implications of starting a business.
The pace of digital wrongdoings has expanded significantly during
recent years. The rate is going to increase in the coming very long
time also. New companies that are active online do tend to face
online security dangers.
Solution : So as to shield the extremely significant online
information, new businesses need to have vigorous and
military-grade security frameworks set up. A virtual private
system (VPN) association effectively protects a start-up’s data,
and representative records, by offering the truly necessary
encryption and information security to the start-up’s workers,
in this way confining unapproved access to hierarchical
information over the web.

7. Winning Trust of Customers

Customer is the king. And that’s absolutely right. Winning a
customer’s trust is one of the most important challenges that
businesses in general – and start-ups in particular – face today.
With a highly satisfied and loyal customer base, start-ups can scale
and make progress towards excellence.

Solution:To win customers’ trust and loyalty, startups need

to work aggressively to implement a customer-centric working
philosophy, so as to enable them to succeed in their pursuit of
attaining the height sustainable growth and progress they
desire to achieve in this tech-savvy and challenging business
world.

8. Unrealistic Expectations
Success comes with expectations. Start-ups tend to face challenges
when they set ‘unrealistic expectations’ following a booming success.
Remember, success is usually short-lived and expectations never
end. This is where start-ups need to understand what the real
expectations are. Sustainability is key and sustainability requires
consistent efforts.

Solution:. In order for start-ups to succeed in a competitive

business world, they need to have high but controlled
expectations, keeping in mind the resources available, the
extent of growth potential, and other market factors that need
to be considered as well.

In the Nutshell

In order to face and tackle the so called challenges of a violent

business world, start-ups need to be resilient and focus on keeping
their integrity in tact against all odds.

In conclusion, challenges and problems are inevitable as far as the

success journey of a start-up is concerned. Therefore, it is important
for entrepreneurs to be resilient and focused towards keeping their
values intact no matter what the circumstances are.

Examples Of Successful Startups in India

Byju’s
In 2015, Indian educational technology launched a learning app
named Byju's. It has 50 million registered learners and 3.5 million
paid subscriptions.
They offer highly personalized and productive understanding
programs for classes one to twelve. They will also make you ready
for several competitive exams.

Challenges faced by BYJU's

According to Byju Raveendran, the creator of BYJU’s, turning
students into paid customers after the free trial period is up is a huge
difficulty. The company is also looking for partners to help it expand
into other English-speaking countries, which would be the second
challenge.

Details of the start-up:

• City: Bengaluru
• Started in: 2011
• Founders: Byju Raveendran, Divya Gokulnath
• Industries: E-Learning, Ed-Tech, Education, Higher
Education, Software
• Number of employees: 10001+
• Funding amount: $2,745,964,432
• Number of funding rounds: 18
• Number of investors: 38

Big Basket
Big Basket is the leading online market in India. The organization
gives a wide combination of 18,000 items and more than 1000
brands going from fresh fruits and vegetables, rice and dals,
refreshments, personal care items, meats, and other daily household
needs.
This platform had been introduced in India when busy people were
facing hardships in spending time to purchase groceries and
essential home items. They give services in several cities like
Banglore, Hyderabad, Mumbai, Chennai, Pune, Delhi, Gurugram,
Noida, Indore, Surat, Kolkata, and many more.

Challenges faced by Big Basket

The biggest challenge that Bigbasket faced was to serve the
customers in the time that has been promised to them. The
perishable nature of the product also adds to Bigbasket’s
complexities. The emergence of several players in the e-grocery
market means that customer satisfaction is the only key
distinguisher. The nature of the product means that the customer is
highly dependent for fresh and timely deliveries, a lack of which can
derail his or her day. A dissatisfied customer will easily switch to
other players which has a direct impact on business and revenue.

Another issue that Bigbasket faced was the small window between
the order and the delivery time. This means a very short planning
time for shipments that is extremely difficult to manage using
manual planning processes.

Details of the start-up:

• City: Bengaluru
• Started in: 2011
• Founders: Abhinay Choudhari, Hari Menon, Vipul Parekh, VS
Ramesh, VS Sudhakar
• Industries: Delivery, Delivery Service, E-Commerce, Grocery,
Internet, Retail, Shopping
 • Number of employees: 5001-10000
• Funding amount: $1,119,863,468
• Number of funding rounds: 17
• Number of investors: 17

Examples Of Failed Start-ups in India

Jabong.com

About Jabong
Jabong.com was an Indian fashion and lifestyle e-
commerce portal founded by Praveen Sinha, Lakshmi Potluri, Arun
Chandra Mohan, and Manu Kumar Jain. Rocket Ventures,
Germany, founded the company.
Instead of keeping the inventory sold by enlisted vendors,
Jabong.com acts as an online mall where the customer can access
products sold by all the partners.
ComScore reported Jabong.com had the second-highest traffic on its
website within a few months of its launch. In March 2013,
Jabong.com ranked 44th in India by Alexa Traffic and 10th Google
Zeitgeist India in 2012.
Jabong.com was glorified as the third-most visited digital shopping
portal right after its rival-later-
acquirer Myntra.com and Flipkart.com in India in less than 20
months.
In July 2016, Flipkart acquired Jabong through its unit Myntra for
about US$70 million. In February 2020, Flipkart formally shut
down Jabong to entirely focus on its premium clothing
platform Myntra. The portal sold apparel, footwear, fashion
accessories, beauty products, fragrances, home accessories, and
other fashion and lifestyle products. The company headquarter was
in Gurugram, NCR, India.
Source: Wikipedia

Reasons for failure

The decision from Walmart-owned Flipkart to formally shut down
Jabong was taken to concentrate on its premium fashion
marketplace, Myntra.
Jabong’s weblink is currently redirected to Myntra’s shopping
window by Flipkart, which had acquired the fashion platform for
around four years, according to a report in the Economic Times.
The move is a strategic move that will benefit Flipkart consolidate
operations and make its marketing budget more efficient as the
traffic to Jabong had been dropping over the years and the two
brands, Myntra and Jabong, owned by the same parent company,
Flipkart did not make any sense for the parent company.
Due to the unprofitable investment on Jabong.com, in November
2019, Walmart took a non-cash impairment charge of US$290
million equivalent for the value of the ‘Jabong’ trade name.
Source: Business Today
 VIU

Launched on 26 October 2015, Viu is a Hong Kong-based over-the-

top (OTT) video streaming provider from PCCW Media, a subsidiary
of PCCW.
Viu had reached 6 million monthly active users in March 2017 from
4 million monthly active users in November 2016, a 50% growth in
about four months.
Viu, at present, has not shut operations in India, but they are soon
going to wind up. Their top management has already left, and most
of the employee strength is on notice.

Reasons for failure

The top-level exits, downsizing of the team, rejection of new ideas or
concepts were all hints to the shaky future of Viu India.
The primary reason for the startup’s failure was the budget
constraints. There was no way they were to compete with giants like
Netflix and Amazon Prime.
“Netflix and Amazon are spending $5-10 million on one show in
India, and we had a total content budget of $15 million. Even the
marketing budget that was given to us was just $8 million. You
cannot create a big OTT play with such a low budget,”.
An employee told E.T.
To summarize it all – The cut-throat competition forced Viu to shut
its Indian operations.
( Source: economictimes )