The start-up economy, although may be booming now, it is going through the initial stages of growth and maturity in India. Here are few challenges, typical startups are facing in India.
Dependence on “Gut-feel” rather than costly market research.
Bootstrapping is very common in India as investors cannot be wooed merely by a concept note, anymore. As a result, the founders have to self-fund the initial stages for which research is a big capital investment, which is better avoided.
Standard management practices do not work well in a start-up scenario, as most decisions have to be taken in a ‘data poor high risk’ scenario. As a result, traditional managers are not equipped to handle start-ups. Nor are there enough industry hardened mentors who can guide the young babies, as the wave of start-ups is just so new.
Branding strategy vacuum
When any start-up initiates a radically new service or offering the real challenge goes into developing the MVP – Minimum Viable Product. As a result, the importance of branding steps a second seat or completely ignored, in the enthusiasm of creating something path-breaking.
“To be or not to be” – Procrastination
Since start-up attracts the Newbies and given the uncertainties of such a ventures industry reputed hardly look them as an option. Therefore, most start-ups have to build and grow on non-specialist managers giving way to longer decision-making time and lost opportunities.
Hitting the market without evaluating enough options
Since research is a costly affair, the startup entrepreneurs have to jump into deciding on creating the MVP without checking it out to a broader set of audience. Not testing on larger consumer base can lead to lesser trails thereby reduced options.
Although skilled personnel is not quite bad in India, start-ups just cannot afford them all the time. Often, however, the multi-skill required to make start-up success stories are very rare to find.
Policy of Government
India lacks a clear long-term start-up roadmap, as economic liberalization is quite new to India. Given the size of the nation and the priorities, the government seems to keep the road-map on the back burner.
Not Experimenting Often Or Enough
Experiments can provide answers to many questions, which are badly required by any start-ups. However, either due to turn around time or due to financial situations they are often omitted or stymied.
Building The Right Team
At the heart of any successful venture lies Team-work. Due limited resources and short-sightedness of the founders, good team building does not happen, resulting in cohesionless teams.
Not able to execute: 20% Idea and 80% Execution
Success lies in skillful execution. Ideas can create a castle in the air, but the visionary has to take the blocks of brick to build the castle.