The Silicon Valley’s of the world have witnessed innumerable success stories of startups that made it big. The bitter truth however, is that most startups fail to succeed and their end is often mysterious or goes unnoticed. In a competitive environment such as that of a startup industry, it becomes difficult to thrive and prosper, which leaves entrepreneurs in a cloud of complete misery. The most common reasons that surface would be the inability to get appropriate funding at the right time, or a completely disorganized business structure or lack of market analysis. Welingkar Institute of Management Development would attribute the failure of most, if not all startups, to management mistakes. WeSchool believes that entrepreneurs play the most significant role in the making or breaking of any organization. A few reasons why startups might fail due to the top level management’s incapabilities are discussed below:
Lack of Focus
Focus as we know, is critical for the success of entrepreneurs. Lack of focus can cause them to prioritize insignificant things, thereby leading to a downfall. It is important to keep the goals aligned both, of people as well as processes. Unfocused entrepreneurs tend to lack the drive to execute. It is essential for budding entrepreneurs to have clarity, direction, desire and drive to overcome obstacles objectively.
Lack good mentorship
Entrepreneurs sometimes lack having a good mentor to guide them on numerous key business aspects. Understanding new concepts, ideas and technology along with the way to deal with obstacles, is what makes an entrepreneur successful. These lessons can only be learned from an experienced professional, a senior in the industry and someone who has the experience and insight to take a business to it’s maximum potential. Mentorship, is therefore an essential part of helping a startup to succeed and attain the next level.
Lack of general and domain specific knowledge
Entrepreneurs often feel that leaders would be making quick decisions in the face of ambiguity. Although this is an important trait, managers and entrepreneurs need to focus on developing domain-specific knowledge or take opinions and advice from people with expertise in that relevant field. Each domain like finance, marketing and operations require a varied skill set. It is impossible for one individual to overlook functioning of each domain with expertise; hence it is advisable for entrepreneurs to be open to acquire knowledge. General knowledge about a specific busines cannot take the business too far, without domain expertise and in-depth knowledge of the industry.
The reasons why startups fail in any industry could be numerous. WeSchool focuses on providing mentorship and knowledge to new entrepreneurs, helping them develop adequate skills to steer a business entity forward. For more information about our courses, please visit our website: www.welingkarexedp.com