Why Many Start Ups Fail



 
When we go to different places a number of business proposals crop of in our mind. If we find a restaurant is very popular and making good business then we tempt to ask ourselves that why not start a restaurant business. If we find a medicine stores is doing roaring business then we feel like starting a medical shop and earn handsomely. TED talks we see and most of us feel like starting a TED talk and get popular. I know some of my friends in software jobs. They saw the lucre and glamour in the software environment and started making their own start ups. Most of them failed miserably, few could afford to come back to jobs but many went bankrupt. They became burdens to their old parents. Many went in to deep depressions never to recover till now.


Staring a new business is an excellent idea. In fact, we read success stories of many entrepreneurs and get motivated to start our own business, but what usually we miss are the failure stories and stories of failed entrepreneurship. To add to this owe, there are now many gurus available in the market who have made it their business to tell success stories of others in order to motivate you to go for start ups. That is good. But point is, most of such self proclaimed gurus are either above 60 years or below 35 years. In "60+" case, experience claimed is outdated, and in the next age group of "below35" the experience is in fact nil. In one of such seminars, a very young TEDX speaker claimed that she can recover the debt laden entrepreneur from his distress if he pays her 50 USD. That is somebody is claiming to take someone out from a debt of 10 million USD. Half of the attendees left the hall within half an hour.
 
Basically, like happiness is said to be within oneself, so is the case with start up businesses. When the gut is within, the brain is equally logical to give us a proper guidance. Making the long communication short, one may ask questions like;




Where,
Smin
=        Minimum Score
Smax
=        Maximum Score
Ws
=        Self rating
Wm
=        Rating as per market Survey
RR
=        Realistic Rating



In most of the instances, prospective entrepreneurs over rate themselves and get in to the start ups, but market is highly irrational and businesses nose dive before take up.
Contemplate all aspects before getting in to start ups.
 

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