The startup culture has impacted global growth and has changed conventional means by which employees operated in a work environment. The typical MNC has everything sorted into niche-specific domains assigned to an individual or group of individuals, as per routine practice. In contrast to this, the startup culture has caused the inception of artistic workplaces with ping-pong tables, bean-bags, pool tables and other quaint things to create an idea-inspiring workplace which induces creativity and productivity. Recently with the increase in the number of venture capitalists, angel investors, crowdfunding options, etc. the dynamic youth is venturing more into entrepreneurship. But even so, the startup culture in India is breaking.
Over the past few years, the economy has seen a staggering amount of startup failures; most happening within five years since inception. There are many reasons for this failure including lack of new technologies, inadequate formal training, poor business ethics and lack of originality. These reasons coupled with cautiously treading venture capitalists after having incurred significant losses by investing in the wrong business can cause the startup culture to weaken even further.
Lack of innovation is a serious problem, with the would-be entrepreneurs trying to emulate established companies’ business models and making a product or service with little originality. Not every such startup is lucky enough to be the next Alibaba.
There are several ways to avoid going down the rabbit hole of failure, pondering without result about what went wrong.
1. Gauge the financial viability
Often when the idea strikes the mind, it is easy to be blown away by ecstasy and forget to take into account, the financial viability of the business idea in question. It is very important to make a clear, informed decision about one’s business after thorough market research and a clear monetization plan.
2. Open communication is key
In the startup culture, employees need to stay on the same page. Sharing successfully solved problems and failures with coworkers helps to maintain a sense of camaraderie, build mutual trust and encourages learning from other people’s failures. This phenomenon encourages positivity, in turn, inducing growth.
3. Collaborate with competition
It is often easier to collaborate than to compete. In today’s world of networking, the more networks a company has, the better it’s position in the economy. Learning from the competition instead of learning about it, can reinforce further ascent in the industry.
4. Define clear goals
Clarity is paramount for the successful execution of any plan; small or big. It is often said that unclear vision produces unclear results. Measurable goals are often realistic and more achievable than idealistic ones. Setting clearly defined goals is helpful because it compels you to focus on a specific number or a specific path. Building a roadmap towards a clear goal is much easier than trying to chase the obscure, unattainable goal.
This is how the startup culture can gain traction again and bring positive change to the world economy and to people’s lives for the collective good.