- Helping businesses reach their potential and vision
Facts & Figues of StartUp World
Startups are the growth engine of any country. If you want to check the economic health of a country then you have to look at their startup scene. A country with a growing startup culture is more likely to perform better on economy and job creation as opposed to a country which lacks startup culture.
India has the 2rd largest startup ecosystem in the world; expected to witness YoY growth of 10-12%, 20,000 startups in India; around 4,750 of these are technology led startups, 1,400 new tech startups were born in 2016 alone; implying there are 3-4 tech startups born every day.
Essential Facts and Statistics Every Entrepreneur Must Know :-
Let’s look at the essential facts and statistics to help you understand what being an entrepreneur really looks like, how you can increase your chances of success, and what you can expect once you start living that startup life.
A little more than 50 percent of startups fail in the first four years. 19 percent of startups Fail because of too much competition, and another 18 percent fail because of pricing or cost issues.You’ll want to do everything you can to foster the success of your new business.
80 percent of entrepreneurs funded their business out of pocket.
The remaining 20 percent?
Ah, the kindness of strangers… or Mom, Dad, and Aunt Susan. These entrepreneurs benefited from the generosity of family, a bank, or interested investors. But in developing countries like INDIA there are more than 80% of entrepreneurs go for Bank LOANS or financial institutions as they are unable to expand their business by their business profits.
The profile of the average entrepreneur
What does the average entrepreneur look like?
It’s typical to picture the “average” entrepreneur as a twenty-something, but this is a myth.
According to a First Round survey, the number of startup founders in their twenties falls somewhere around 20 percent. A paltry 3 percent are between the ages of 21 and 25.
Founders of the companies with the highest growth clocked in with an average age of 45.
While it is true that 51.6 percent of businesses started out running from someone’s home, many of those entrepreneurs were well educated.
39 percent of business owners have a bachelor’s degree or higher.
In a survey run by the Kauffman Foundation, 95 percent of the business founders surveyed had at least a bachelor’s degree, and 47 percent had even more advanced degrees.
When you think of an entrepreneur, you probably picture a man, right?
While startups are still dominated by male entrepreneurs, women are starting to grow their presence.
In fact, it’s a great time to be a female entrepreneur.
But the hours are good, right?
A survey of hundreds of entrepreneurs revealed:
19 percent work 60+ hours per week,
30 percent work 50-59 hours per week,
33 percent work 40-49 hours per week,
14 percent work 30-39 hours per week, and
5 percent work less than 30 hours per week.
Indian Startups are Aggressively Entering Competing Verticals
These startups are not sitting pretty on their laurels. They're actively entering each others' space in search of more revenues, profits, and a justification for lofty valuations. For example, Ola to grocery delivery (Grofers), PayTM to E-commerce (Flipkart/Snapdeal), Zomato to food ordering (TinyOwl/Swiggy), or Quikr to real estate (Housing.com).
There seem to be very few shortcomings in the country’s explosive startup economy, with an increasing number of newborns while the toddlers continue tying up with large conglomerates in a bid to expand and establish a name in the market.
- IDEA VALIDATION
Since 42% of startups fail from building products or services with no market need, it’s important to validate your idea first. That’s because nobody wants to waste their time building a product or service that people don’t want.
Your startup idea needs to fulfill a need in the market and you need to know how to fill it. Knowing how your idea will solve a problem in people’s lives will help you validate it when you do market research, competitive analysis, and personal outreach. In addition, your startup idea should be comprised of hypotheses of your value proposition and unique selling proposition.
Planning is key to any business throughout its existence. Every successful business regularly reviews its business plan to ensure it continues to meet its needs. It's sensible to review current performance on a regular basis and identify the most likely strategies for growth.
Scalable is a word that gets thrown around in business conversations. But what does it mean?
A “scalable startup” takes an innovative idea and searches for a scalable and repeatable business model that will turn it into a high growth, profitable company. Not just big but huge. It does that by entering a large market and taking share away from incumbents or by creating a new market and growing it rapidly.
- HOW TO SCALE YOUR BUSINESS?
1. Ask Yourself If Your Business Is Really Scalable
2. Identify Your “Core”
You need to know your core products, customers, and marketing channels before you try to take your business to the next level.
3.Make Your Business Workable Without You
Your process needs to be simplified and streamlined to the point that even if you disappeared off the face of the earth, someone could easily come in and know what to do.
- CASH FLOW IN YOUR BUSINESS
So, what is cash flow? It’s basically the movement of funds in and out of your business. Typically, businesses track cash flow weekly, monthly or quarterly. There are essentially two kinds of cash flows:
Positive cash flow: This occurs when the cash entering into your business from sales, accounts receivable, etc. is more than the amount of the cash leaving your businesses through accounts payable, monthly expenses, employee salaries, etc.
Negative cash flow: This occurs when your outflow of cash is greater than your incoming cash. This generally means trouble for a business, but there are steps you can take to fix the negative cash flow problem and get into positive zone.
- WAYS TO FIX CASH FLOW PROBLEM
Now that you have a fair idea about cash flow basics, lets see how you are find solutions to cash flow problems:
1) Short-Term Financing
Short-term financing such as a line of credit can be used to make emergency purchases or to bridge the gap between payables and receivables. Many banks issue business credit cards that you can use to pay your vendors.
2) Long-Term Financing
Large asset purchases such as equipment and real estate should usually be financed with long-term loans rather than with your working capital.
3.Speed Up Recovery Of Receivables
Bill early, collect quickly. To guard against late payments, bill as early as possible and make those invoices as clear and as detailed as possible.
4) Liquidate Cash Tied Up With Assets.
Do you have equipment you no longer use or inventory that’s becoming obsolete? Consider selling it to generate quick cash.
5) Delay Your Payables
This may sound obvious but its often neglected. Unless there’s a worthwhile incentive for you to pay early, figure out how late you can pay your vendors without risking late fees or harming your relationship.
- FUTURE PLANS
However, the thinking around the required depth and complexity of a business plan has changed. A decade or two ago, management gurus advocated elaborate 40-page plans with detailed sections covering objectives, mission, organisational structure, target market, customer behaviour, competitive advantage, marketing strategy, sales forecasts and financial projections.
These days, unless you’re seeking outside investors or looking for a bank loan that requires a detailed risk analysis, the move is towards shorter and simpler documents of no more than a page.
What should be in your one-pager?
• Vision - What are you building
• Mission Statement - What you do, what your product/service is and who your customers are
• Objectives - Your business goals for the next week, month or year
• Strategies - How you plan to achieve your objectives
• Action Plan - Steps you will take to action your strategies, including dates/deadlines.
- GOOD LEADERSHIP
Leadership is one of the most important skills needed to build a company, one that reaches success. It is learned from years in the workforce and absorbing inspiration and management styles from mentors.
Allowing personality to define a startup’s culture will help set it apart from others. For an entrepreneur looking to venture into the startup world, regardless of age, there are four things to remember when beginning a company:
1. Know where you’re going. Set actionable and attainable goals over a marked period of time. Create a detailed and realistic road map for your first year, and then your first three years.
2. Foster an open company culture. If you create a work environment where all employees feel important and included, everyone will enjoy their experience and contribute at their highest levels to the organization.
3. Ask the right questions to get the best hire. You’re looking for a diversity of thought, which requires that you hire smart people who may have varied backgrounds from yourself.
4. Make a realistic and honest budget. Too frequently, startups fall into the trap of either under-budgeting or over-budgeting in their first year. This can create a strain on your employees and create conflicts in the information you present to future investors. Save yourself the headache and make a real budget and stick to it.
- GOOD CONSULTANTS
To start a business you need an expert's advice, therefore, hiring a start-up consultant will help you and your business to reach greater heights and profits. A professional consultant will input his experience which will help you to leave your competitors behind.
Many start-ups fail due to lack of money, manpower, poor management skills and timely administration of the work. But a skilled consultant will not let your business go down. They will guide to grow in the market and get revenue from the business.
Young entrepreneurs get many services by the highly skilled start-up consultant such as business analysis, digital marketing expertise, training, and HR policies. This will not let them fall and help them to hold the market and gain momentum in their work.
Many consultants give their services in India among them one is URBAN GURUS . They provide customized affordable packages to the start-ups and provide you with full support in the development, management, and marketing field. The suggestions and the regular follow-ups by the team of experts will rate your business effectively in the market.
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