Failure is regarded as a social stigma. Success is credited to the company as a whole but, failure is attributed to an individual. This attitude needs a drastic change.
Everybody talks about the success of a company but, nobody wants to get into the details of failure. The success of any startup can be dicey, but the thought of failure may turn this opportunity into a misfortune.
About a Failed Startup D: FY
In 2017, Prashant Desai launched the Indian sports brand D: FY. He simultaneously opened 17 stores in seven cities and featured celebrities like Anil Kumble and Farhan Akhar. He also partnered with Amazon for online selling. Due to miscalculations and blunders, the business lost Rs 30 crore within 30 months.
Drawing your attention to this recently launched book, The Book of a Failed Venture: Decoding Success Secrets from the Blackbox of a Dead Startup by Prashant Desai, I would like to focus on how to avoid your failures when you are investing all the resources in your dream project.
The book describes the personal and professional journey of an entrepreneur Prashant Desai in five phases or 5 D’s – Desire, Dream, Dare, Determination and Defeat.
Lessons from failed Startup
Someone has rightly said, “Forewarned is forearmed.” Here are the factors that will determine whether you will succeed or fail in your entrepreneur journey.
Strategic Planning It is important to think smartly with absolute caution. In the world of entrepreneurship, caution is the key for those who start a company with little capital relying totally on personal finances. These ventures often need the right approach and should execute within budget.
Lack of clarity between vision and mission
To understand the purpose and area of interest, the founders should know what they want to do and why. Besides, they should also understand the importance of “how” – the execution and operational factors influencing the startup.
Team Building
The story of Instagram shows the power of its team members who listened to their customer feedback and learned to become a successful social media platform.
In team building, young entrepreneurs lack trust and employ their friends and family, who lack skills. They should choose employees with better engagement who are willing to give honest feedback and have the ability to experiment.
Fortunately, capital from investors is now available for fundraising. Founders should have trustworthy lawyers and accountants, as fundraising are mentally taxing.
Targeting the right customer base
Consumer attitudes are difficult to crack, and customer preferences change from time to time. It is important to track customer behaviours and even encourage new ones by rewarding them with good discounts.
If customer experience about a startup is positive, it accounts for fewer workforces in customer complaint department.
Start with the right mindset and be ready to adopt changes
Trial and error is a big challenge for startups. While learning fascinates at an early stage, it takes your valuable time. Being a founder, you should know that time also matters; planning is not enough.
Be prepared for unavoidable factors such as demonetization and GST that can eventually change the complete equation.
Stay away from greed
Co-founders must have a sufficient stake in the startup to keep the team members motivated and ensure their business’s control. As a matter of fact, they should treat their dream venture like a baby.
Just an opinion
Startups are fragile by nature and have a high rate of failure as they are unpredictable. They originate from the ideas rooted deeply in the imagination of an entrepreneur. Before launching your dream company, you should learn from others’ mistakes and mark areas with a scope of improvement in your plans.
