In Hyderabad, gone are the days when youngsters wanted to pursue a career in the field of engineering or medical. It’s the startup era now and the city is no less affected by it.
While this change is a welcome one, there also is a flip side to it.
The most common issue hounding the young entrepreneurs in the city today is the rate at which the startups are failing. According to one data, 8 out of 10 Startups have failed in the first year itself in the previous two years.
A major problem with startups here is that a lot of them do not take time to settle in.They jump into the rat race to raise money and get to the market. And once the investors come into picture, the pressure of expansion increases and if the venture fails to grow, the company loses out in the next round of funding, eventually shutting the business.
Another reason, according to some gurus is the lack of proper mentorship. A new venture needs different mentors at different stages and it is very important to pick the right mentors. That’s the reason why only one in 20 startups see success. Some Startup owners feel that timing of launch holds the key to a startup’s success.
“Hitting the market at the right time is the mantra. Once you miss that, you miss the market’s attention. Another important factor is the saturation level.” said Gaurav Bhimani, Startup consultant, to TOS.
“While one sector reaches its saturation point, the others remain untouched. Everyone wants to be part of low-risk areas like food or retail, and sectors like aerospace or defence remain unexplored,” he added.
Meanwhile, Gaurav also feels that lack of expertise in technology also aides the failure rate. “Unlike in the west, most of the founders in startup industry here are students or entrepreneurs who don’t have adequate technical knowledge. Mere ideas cannot run a company, there need to be some technical expertise,” he says.
According to him the Mantra is “Fail fast.” “Fail fast, because if you fail in initial stages, the loss incurred would be less and there is always a chance to start up again.”