Hi readers,
Today I would like to share some ideas about the need for startups, the reason for the failure of startups and of course we will definitely give you some tips to achieve success. However the last one is a bit interesting, isn’t it?
What is a startup ???
A startup is a budding company that is just starting to develop. Startups are generally small and primarily it is financed by a group of founders or by a single person. These types of companies normally offer a product or service that is not offered very commonly in the market, or that the founders think that is being offered in an inferior manner.
A sustainable growth is extremely crucial for a startup. Ie, The maximum growth rate that can be achieved and maintained without the help of external financings like money borrowing or fundraising. By evaluating the growth rate we can understand the future of the startup.
Nowadays failure rate of startups is high; hence, founders should consider not just the idea but the experience of the team.
Now we are going to discuss the reasons for startup failure. If we know the disease we can cure it with appropriate medicines. Similarly,
if we know the reasons for failure we can definitely overcome it by taking necessary precautions.
1. COMPETITION:
One of the biggest challenges is competition. New businesses are like a newborn baby. Your competitors have the upper hand and advantages in the market. Because they have been in the field for a long time. Hence, they gained more knowledge in the business process and about the market. Take deep research about the competitors and their product, their business process etc., Which help you to form a picture about the competitors and about the need of new improvements and quality of your emerging product/service.
2. PROBLEMS RELATED TO MARKET:
The majority of the startups face the market problem. Nowadays we can see that new companies initially find the solution then they search for the problem that is suitable for the solution ie, they don’t think about the market needs. The main failure of a product is that it doesn’t solve any market need. Make a deep and wide market research, which help us to get clear cut idea about the proper market for any product.
3. FAILURE OF BUSINESS MODEL:
The business model is an important factor in the failure of the business. Optimism is good in life, but in the case of the business world, we have to open our eye in all direction. We must look forward the future problems. And we have to think about the solutions we need to apply. Be an optimist at the same time be alert. Each founder is misjudged about the product. They all think that their creative website and the product will definitely catch the market. But actually, in most of the cases, this happens only for very few customers after that the customer acquisition is an expensive task. First of all, we have to search the market and then we need to prepare a perfect business plan . Make sure that the plan is well organized and analyzed after the research.
Benefits of Customer Acquisition:
By applying proper customer acquisition methods helps the organization to gain the required growth. Effective and planned strategies will definitely help the organization to acquire the right customers in a cost-effective way. New companies like startups need to concentrate on customer acquisition well-established companies can shift their concentration to customer retention. Generally, customer acquisition cost is higher than the customer retention cost hence make a deep analysis of the benefits come together.
4. INEFFICIENT MANAGEMENT TEAM:
The next major problem with the startup is related to the management team. A good management team is capable of avoiding some problems. A weak team cannot plan a good strategy. If the foundation is weak how can we build a perfect and strong building? Hence from the weak strategy, we have developed a product that has no market value. Or they fail to validate the idea before the development stage. Problems during execution will result in a delay in product development which results in lower the product ‘s market. execution is important, smart execution plays a major role because others would have thought of the same idea earlier, but you have to be the one who is launching the product after proper execution & in the appropriate time. Well planned and executed product will meet the urgent market need.
5. LACK OF BUDGET:
The majority of the people think that starting a business is high risk because of the cost of realization and lack of budget available. In general case we start a business for making money, however, you can’t make money unless you have a budget to fund the new business from the initial stage. As early said risk is an important factor hence, you have to make sure about the cash flow is healthy. Even we have a perfect plan sometimes things never go as our plan for example product development may lag due to unexpected problems or we have to raise extra fund. Every startup needs a significant amount of money to cover the different expense. For eg, office space, new website, company logo, marketing materials, staffing, product launching program and the list is going on ...
Expense management:
Expense management is also important as the fund or investment management. As early said every startup need a significant amount of money to cover the different expense. For eg, office space, new website, company logo, marketing materials, staffing, product launching program etc... Make sure that you never spend too much amount for decorating your office space or show the luxury of your office space. Remember that there is a lot of difference between an established company and a startup company. Hence, we have to avoid extra unnecessary expenses.
These are some major problems of the startups. Now we have to think about the business tips that lead you to the way to success.
1. Source Code Buying Re-Branding and Selling.
What is Source Code ???
The source code is nothing but the original work created by the software programmer/developer. Developers use different languages ( Dot net, PHP, Python, Java etc ...) to create the source code. As early said, the startups are normally faced a budget issue. ie, they don’t have enough luxury to spend on advertisements, experienced staffs etc... Not only that, time-bound projects may not finish on time this may make some headache for both client and the company and many other issues. When a startup is developing their own software product it will definitely take the extremely large upfront amount and it takes months or years to finish. Deployment and management of developing team are really furious.
Now it is time to relax. Why we carry all these tensions??? Cybrosys is here to bring your plans to live by providing a single solution. Here we are providing you the solution for that by giving our proven ready-made products with unimaginable price and you can start selling it within the very next day; Only within 3 steps.
Buy our source code -> Rebrand the source code -> Sell YOUR source code or software or both.
Earn money without going through any hectic process. By rebranding the source code you don’t need to go through all the hectic procedures of programming. Hence, you save the money! How ??? You don’t need to hire any programmers to code or any designers to design. You just buy – rebrand and sell. Simply you save cost and you escape from all hassle process of programming.
So from where do you buy source code and software ???
You have to consider a well experienced, expertise and flourished vendor because the source code is the backbone of the program.
By purchasing the ready-made source Code from us will give you some bonus along with it. You will get the source code of both windows based & web-based products with a complete license to rebrand & resell as your own product.
Our offers :
1. The complete source code of ready-made products
2. Rebranding and reselling rights
3. Free support and training (conditions apply)
4. Separate software for validation key generation for windows based products.
5. All documents and materials ( Technical report, SRS, a flow diagram of projects with a description, screenshots and documents of system design, project and demo Exe, implementation documents, marketing materials )
2. Outsourcing.
Outsourcing or Business Processing Outsourcing ( BPO ) is contracting with any other company or a person to do a specific function for you or your company. Nowadays almost every service your company needs is available in outsourced form.
The primary advantage of any outsourcing deal is that you have experienced professionals working for your organization at only a fraction of cost it would take compared to that of hiring an employee for full time. Similarly, all process of business is handled by trained employees which give you a boost up you need as a startup. Hence, you can concentrate on your core business, which results in more growth.
We will give a list of advantages:
1. Gain access to fast growth.
2. Allow your firm to concentrate on its core processes.
3. Improve operations and customer service.
4. Achieve flexibility to handle changes in business cycles.
5. Increase growth and retention.
6. Cut costs.
7. Avoid capital expenditures.
8. Avoid additional employee costs such as insurance and benefits.
These are some benefits and many more proven benefits that should favor the startups. And more importantly, there are lots of suppliers of outsourcing services. Actually, the important question is when to receive the outsourced services and who is the appropriate outsourcing vendor for your profile.
I know you want to ask me some questions, don’t you ?. And your question is “what should I outsource ” ? “what your business should outsource ”?
Now go through the following questions;
1. Is the particular task is temporary?
2. Is it more costly to do the same task in-house?
3. Can your in-house resources be put to better use for another purpose?
4. Does the task you need require a high specialization that makes it impractical for a regular employee to do it?
If your answer is “ yes ”, then you should go for outsourcing those activities.
Hey, it's not over I have something more for you. ie, some tips to help you to get started.
1. Understand your business aim of outsourcing – Is it to reduce cost, generate more revenue or gain a competitive advantage?
2. Identify which of your projects or functions need outsourcing and rethink why they are best outsourced?
3. Know and identify the present conditions of the area in which you plan to outsource – costs, outputs, infrastructure etc...
4. Ask your network/contacts as to where to look for an outsourcing partner for the service that you want to outsource – in a particular country/city.
5. Set deadlines to complete discussions and to start outsourcing your work.
6. Get your outsourcing agreement and other supporting documents and reviewed by a legal counsel. Additionally, you can also review your vendors' contracts ( and other contracts; if any ) for any discrepancies before you start outsourcing work.
Now I would like to give some tips in some major areas you should concentrate on startups outsourcing.
1. Outsourcing Agreement:
There are few things you have to consider when drafting the agreement. The majority of the agreement rules are of a high standard but don’t forget that most of them are targeted to large companies. But start up the environment is something different, isn’t it? Ie, Startup model of outsourcing is BOT–Build Operate Transfer based.
2. Hiring Procedure:
Any new employees that will be appointed to your project should pass your qualification test. You can only afford to hire qualified people to do your project, as you can’t afford to pay for people’s training.
3. Employee Performance:
The contract you sign should include a section that identifies strict performance criteria and clearly specify a notice period in which your outsourcing partner should get a replacement for a non-performing or below average performing individual.
Here are some more things that, you shouldn’t do:
1. Looking for the cheapest price
This is definitely not the best approach. Usually, you get what you pay for, and your business can’t afford that. You have to keep an eye on quality as well. Because quality is one of the important factors in capturing the market.
2. Unclear expectations
If you don’t know exactly what you want from that project, you can’t expect your outsourced service provider or vendor to know that for you. This is actually the main reason outsourcing deals fail. So make sure you know what is your requirement, and you make that clear to everyone involved in the project.
3. Not checking work
You have to check the work the outsourced service provider performs, as it won’t be perfect right away. Feedback – negative or positive – is needed for your partner to better understand your business’s needs. Feedback always helps to make high quality of the product/service. Review the progress regularly and maintain an open communication channel.
I think it is better to discuss some key points about the vendor. Because the outsourcing vendor plays a major role in the success of our startup.Things you need to know before fixing your outsourcing vendor.
Do not forget to ask the following questions to the vendor.
1. Do you have enough confidence, that you Can actually do the service?
In most of the cases, vendors/ suppliers promise to provide all kinds of services but often lack the necessary expertise in the service that you want to outsource. Therefore it is very important that the vendor you have approached have all the necessary skills and experience to carry out your requirement efficiently.
2. Will you please tell me something about your infrastructure? And different ways to communicate with them?
3. What security measures do you have in place?
4. Do you have any happy customers and references?
5. How long have you been in this field of outsourcing?
Try to enquire the above-mentioned details about the vendor.
When you outsource your business demands to an outsourcing partner like Cybrosys Technologies, we offer highly professional and committed specialists to manage your business on all levels to deliver a high-quality result within the set deadline. We help you to achieve your strategic business goals through our technical resource fullness, proven domain experience, and project management skills. This leads to an increase in productivity and efficiency in the process.