Startups and Skills: Roadblocks
Thanks to a number of investors, the startup sector has witnessed an exponential boom. Earlier we have gone through a lot of discussions about startups, like how to start your own startup, on how to build your startup team, etc. Now let us take a look at what are the roadblocks that a startup may face. It is a rather important task to find out and resolve the factors that are preventing the growth and sustainability of startups in the country.
Some of these factors are:
India, famous for its affordable and skilled pool of talent, has been a location for outsourcing for a long time. Especially when it comes to technology, India has the best and the most affordable talent pool. But when it comes to startups, this same talent pool becomes rather a pain. Talent acquisition for startups is hard because not everyone has the flexibility required to work in a startup culture. There are a number of solutions that one can opt for in this scenario, having people who have basic talent acquisition knowledge can help you create talent pipelines to assist in the recruitment process.
Burn Rate and Revenue Generation Gap
The burn rate refers to the rate at which a new company spends its initial capital. It is often seen that even the most popular startups start running low on cash. There is a lot of competition around and it becomes rather imperative for startups to scale up and scale up fast. External funding has proved to be of great help in this scenario, after all investors and startups have gone hand in hand since forever. Several times it has been observed that companies start paying complete attention to fundraising and ignore the actual revenue generation, and this way, when the fundraising comes to a halt, troubles start.
It is therefore very important to have a proper plan for the management of your burn rate. The way to operate is to not let the burn rate go haywire ever.
It isn’t easy to start a startup and make it successful and truthfully speaking there really isn’t much that working experience can do for you, as a startup is a completely different story as compared to working somewhere else. Lack of proper guidance and mentorship is one of the biggest problems that exist in the Indian startup ecosystem. Many times, a lot of people have a lot of great ideas, ideas that can help these startups reach great heights, these organizations are great with their ideas and products, but lack business and market acumen that will help them effectively get their products out. This is where good mentorship can actually help startups.
Startups are new to the market, and it makes sense that they want to concentrate on earning revenue but that makes them ignore branding. Absence of an effective branding strategy is yet another issue that bars startups from flourishing speedily. Employer branding is one of those areas in a business that demands paramount attention and affects the product’s long term commercial success as well.
Not only are today’s customers adaptable to change, they have started expecting it. One of the struggles that a startup faces includes the need to constantly reinvent their services and come up with new strategies and services that can match up to the customer’s expectations. Even though this is a struggle, with the right innovations, this can also be converted to a great opportunity that gives your organization a competitive edge over the others.
It is a given fact that despite having raised good investments, many startups struggle to survive the competition and are eventually forced to shut down their businesses. But once you know what the main issues are that are stopping you from reaching greater heights, it gets easier to face them and be able to work against them.