Startups, it appears, is the new trending topic. The majority of us wants to be successful Entrepreneurs. Only a few amongst us realize just how difficult it is to be an Entrepreneur. You need to take care of hundreds, possibly thousands of things. You need to analyze every step before taking a decision.
We hear stories about successful startups every day, but we don’t realize how many fail. The reasons range from financial to legal issues, market problems to business plan flaws, team mismanagement to poor marketing. Due to these reasons, a large number of startups fail in their very first year. So how did LegalRaasta, a year-old startup managed to survive? Let’s focus on some major reasons behind business failures and how LegalRaasta, a legal solution provider firm, tackled them.
We hear stories about successful startups every day, but we don’t realize how many fail. The reasons range from financial to legal issues, market problems to business plan flaws, team mismanagement to poor marketing. Due to these reasons, a large number of startups fail in their very first year. So how did LegalRaasta, a year-old startup managed to survive? Let’s focus on some major reasons behind business failures and how LegalRaasta, a legal solution provider firm, tackled them.
1. Market need and team management
Some people are so excited about the notion of being an Entrepreneur that they tend to miss out on a very important factor, that is, market. Not all business ideas can flourish in a market. Having an idea is good, but it is not possible to sell your idea in every market. Therefore, a proper market research, market need and a right team are required for successful establishment of a startup.
What LegalRaasta did - LegalRaasta is basically providing a one-stop web portal for its clients where they can find answers to all the confusing legal and financial procedures. In a nutshell, they provided what customers wanted. A need of the hour kind of thing. So it is safe to say, that a proper market research was done before and during the formation.
Not to mention, a team of dedicated members helped their cause a lot. They found people who believed in their idea and made the company’s mission their own aim.
2. Capital, business plan, and marketing
You need capital to start a business. Unfortunately, not many of us understand the concept of accounting and finance. We do not acknowledge the need for a properly planned business plan, an intricately analyzed investment plan and a deeply researched market plan. Without any of these three, chances of survival of a startup reduce to a very low number.
What LegalRaasta did - They had all the three things. They knew their targeted audience, and also how to attract them. Proof? An angel funding of $1 million. This funding implies that they had a great marketing as well as a properly planned business plan. And with the capital they managed to raise, any possible financial issues went out of the window.
Some people are so excited about the notion of being an Entrepreneur that they tend to miss out on a very important factor, that is, market. Not all business ideas can flourish in a market. Having an idea is good, but it is not possible to sell your idea in every market. Therefore, a proper market research, market need and a right team are required for successful establishment of a startup.
What LegalRaasta did - LegalRaasta is basically providing a one-stop web portal for its clients where they can find answers to all the confusing legal and financial procedures. In a nutshell, they provided what customers wanted. A need of the hour kind of thing. So it is safe to say, that a proper market research was done before and during the formation.
Not to mention, a team of dedicated members helped their cause a lot. They found people who believed in their idea and made the company’s mission their own aim.
2. Capital, business plan, and marketing
You need capital to start a business. Unfortunately, not many of us understand the concept of accounting and finance. We do not acknowledge the need for a properly planned business plan, an intricately analyzed investment plan and a deeply researched market plan. Without any of these three, chances of survival of a startup reduce to a very low number.
What LegalRaasta did - They had all the three things. They knew their targeted audience, and also how to attract them. Proof? An angel funding of $1 million. This funding implies that they had a great marketing as well as a properly planned business plan. And with the capital they managed to raise, any possible financial issues went out of the window.
3. Customers and Legal Challenges
The success of any business is directly proportional to the satisfaction of its customers and investors. Customers are supposed to be the priority of the company. However, with all the competition in the market, the majority of the startups sometimes tend to ignore their customers. They are more focused on their product and making it better but they ignore the most valuable suggestions they can ever get. And add all the legal issues, countless registrations, tedious tax filings and similar things into the mix. Result? The survival graph of the startup goes down with double speed.
What LegalRaasta did - Well being legal solution providers, it’s safe to say that they manage all the legal challenges very well. And as far as customers are concerned, they are their priority. LegalRaasta, unlike many, makes sure that their customers are completely satisfied and their work is done within the provided time frame. Meeting deadlines and providing satisfactory work are the highlights of the company.
The success of any business is directly proportional to the satisfaction of its customers and investors. Customers are supposed to be the priority of the company. However, with all the competition in the market, the majority of the startups sometimes tend to ignore their customers. They are more focused on their product and making it better but they ignore the most valuable suggestions they can ever get. And add all the legal issues, countless registrations, tedious tax filings and similar things into the mix. Result? The survival graph of the startup goes down with double speed.
What LegalRaasta did - Well being legal solution providers, it’s safe to say that they manage all the legal challenges very well. And as far as customers are concerned, they are their priority. LegalRaasta, unlike many, makes sure that their customers are completely satisfied and their work is done within the provided time frame. Meeting deadlines and providing satisfactory work are the highlights of the company.
4.Network/Advisors.
The excited, enthusiastic minds behind most of the startups often miss out on the importance of good advice and a big network. An experienced advice can help startups to avoid some grave mistakes which otherwise are capable of ruining the whole business. A good network ensures that the business has good connections and hence are more likely to be recommended.
What LegalRaasta did - They worked on their advisors and network. It’s just been a year since the inception of the company, yet they managed to include some highly experienced professionals in their circuit. Their advisors include CAS, CS, and lawyers who are involved in their field for more than decade now.
So, what we can conclude from this, is that there are endless reasons behind a startup failure. What really matters is the right amount of passion, involvement, and the presence of mind. There are a hundred ways to tackle a problem, but your startup depends on that one out of the hundred solutions. The year 2016 was lucky for some and not-so-lucky for the others, but leaders, entrepreneurs are known for their never-giving-up attitude. So what turned out to be unfortunate, make sure, you turn it into the best possible opportunity.
The excited, enthusiastic minds behind most of the startups often miss out on the importance of good advice and a big network. An experienced advice can help startups to avoid some grave mistakes which otherwise are capable of ruining the whole business. A good network ensures that the business has good connections and hence are more likely to be recommended.
What LegalRaasta did - They worked on their advisors and network. It’s just been a year since the inception of the company, yet they managed to include some highly experienced professionals in their circuit. Their advisors include CAS, CS, and lawyers who are involved in their field for more than decade now.
So, what we can conclude from this, is that there are endless reasons behind a startup failure. What really matters is the right amount of passion, involvement, and the presence of mind. There are a hundred ways to tackle a problem, but your startup depends on that one out of the hundred solutions. The year 2016 was lucky for some and not-so-lucky for the others, but leaders, entrepreneurs are known for their never-giving-up attitude. So what turned out to be unfortunate, make sure, you turn it into the best possible opportunity.
This article has been contributed by Simmi Setia, Content Writer at LegalRaasta, an online portal for GST software, GST Return Filing, gst registration, section 8 company registration, nidhi company registration, IEC registration, fssai license.
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