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Activity:
60 views;
last activity : 01 11 2011 16:46:27 +0000
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Spending Too Much
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Choosing the Wrong Platform
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FAILING TO PLAN IS PLANNING TO FAIL
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Your bad luck ... And your inability to retreat ..
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Loosing patients.....
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How much is too much is the question.
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Not doing Ground work Properly
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Lack of Perseverance
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Insufficient working capital
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Wrong Market
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It's hard to distinguish spending too much from raising too little. If you run out of money, you could say either was the cause. The only way to decide which to call it is by comparison with other startups. If you raised 50 lakhs and ran out of money, you probably spent too much. |
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I agree with you Sudip. Remember when Mukesh Ambani decided to go for retail business first thing he did was kept a budget of 100 crore of rupees for the employee and he did all ther cost calculation and once the team was in place he asked for a roadmap with expense. The same has been given he was having the same calculations in mind and gave a go ahead. Today they are earning profits.
So one should calculate each and everything before the start up operation including all the spendings and go as per that. In that case the enterprenure will not end up spending more. In start up the investment is actually 3 times the normal expense and that is the reason the breakeven comes only after two years of start up and one should take this into consideration otherwise in one place or the other he will spend more and probably stop there.
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A related problem is choosing the wrong platform. For example, I think a lot of startups during the Bubble killed themselves by deciding to build server-based applications on Windows. Hotmail was still running on FreeBSD for years after Microsoft bought it, presumably because Windows couldn't handle the load. If Hotmail's founders had chosen to use Windows, they would have been swamped. |
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IMPROPER PLANNING OR IMPROPER EXECUTION WILL LEAD TO FAILURE.INADEQUATE ENDURANCE WILL AGGRAVATE THE SITUATION |
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It’s all about planning but strategic planning that is. I also agree with S.Baalu. Failing to plan is planning to fail. Once you develop your strategic plans then everything else will fall into place. All startups and current companies need proper planning especially strategic planning. Planning gives you the direction, guidance and focus that you need. Without proper direction, you and your business are going nowhere.
A business of any size needs strategic planning, business planning, risk management, development planning etc… Planning helps to set a stable foundation for a business or project. Without a stable foundation a business can crumble. As I stated before: It’s all about strategic planning. A business needs strategic planning, strategic management and dedicated implementation.
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While starting up's..delay will cause..In hat situation,loosing patients also will disturb the business. |
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Which is again debatable. So, whenever anybody starts something, then they will have an idea or bunch of ideas and they discuss/plan for the same. It is different that, some may fail! But they gain experience with it. So planning becomes most important whether it is choosing platform or allocating funds. Everybody cannot be expert in fund allocation/planning and at the same time technical geek! Get ideas - discuss well with friends - other geeks/experts before u start. Don't ever regret for what u have done. U may loose time, money but will gain experience :) Be a good listner and judge yourself for short term and long term goals. Do not start anything without clear plan.
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As said u have to first ask yourself what can go wrong and then remove those which can be hurdles and u will be successful. |
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I think this is the main reason. Rest of the factors attribute from this only.
Thanks,
Vinay
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Incomplete background info in the beginning (which in most small-budget cases can't be helped) - lack of proper financial planning/foresight - lack of Plan Bs contribute to failures. All those things are in the game and has to be dealt with gradually, as we learn more and gain experience. But what finishes it all off is the lack of the will to hold on during real downs.(although it's debatable as to till wen we shud hold on ;) |
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Insufficient working capital is one of the main reasons for start up failures. Before starting up it is always wise to plan working capital for at least 2 years. However good the business idea is, there will always be ups and downs in cash flow initially, so there always needs to be sufficient working capital to support the lean periods. Regards, Om Deshpande |
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I would like to support Mr. Manjunath here. Bharat Ganarajya.. that is what it should be... |
@ Abhishekh He has clearly explained the differnce between an enterpuener and an owner.. But the problem of the debate is that we fall in neither as we are not into business.. But if he asks that what you wanna be.. I would love to be an enterpuener..... |
Believers believe and non-believers don't . No one can tell what will happen tomorrow but we want to get assurity which makes us feel more secure and so we want to believe in it. All the astrologers are taking advantage of this mentality. |

