Top challenges start up companies face during their initial stages

India is becoming a hub for startups Nasscom says “India has paved its way to secure the third position in the world in terms of the number of startups, 4200 and counting, a growth of 40%, by the end of 2015.”

So lets evaluate how many of these startups are successful, If we take 100 startups, out of them only 5 to 10 startups are successful in the market.

The reasons could be like

Inappropriate budget spent at inappropriate time in Marketing :


Marketing plays a vital role for startups,  from taking a scratch to a brand in the market. Too often companies either start marketing activity either too early i.e before the product or service is not ready or too late i.e even after the product/service penetrated into the market.

If marketing started too early, it creates a footprint in the market but at the same time if the product is not launched on time, customers would easily forget it and competitors will grow like a plant from the seed and meanwhile don’t need to explain what happens if it is too late.




Recruitment plays a key role again for startups, hiring the right talent really matters. Multi national companies look for experienced people where as startups look for talented candidate.

The hiring process for startup should be in descending order.

Initially need to hire managers and later his team. This works perfectly in recruiting the right talent.


A Startup company generally come up with minimal budget to spend no matter how many crores of investment they have.

You Cant Manage What you Cant MeasureFinancials

There are three metrics in financial forecasting

  1. Actual : What really happened
  2. Forecast : What you hope will happen
  3. Actual vs Forecast : how well you did compared to what you thought might happen




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