Today we will know how we can start any startup or company. So that your product and service gets available in every place. 

For this we will know some important points.

According to IBM Institute for business value in oxford economics, 90% of Indian startups fail in the first 5 years.

The biggest reason for this is the “lack of exactly needed innovation”.  We will know everything about today’s topic.

Let’s take the report of Asia during 2015-2016 of patents filed. Only 1424 patents are filed in India, 14600 patents filed in Korea, 29800 patents filed in China, and 44200 patents filed in Japan get ahead in startups in Asia.

What were the strategies Japan adopted to file these many patents in business? Let’s conclude every strategy of it under 10 points.

What’s in it for me?

  1. Missing innovation around the customer’s money-making model.
  2. Negative cash flow and negative working capital.
  3. Expansion with negative margin.
  4. Lack of talented manpower.
  5. Scalability with the recurring revenue model.
  6. Mixed marketing signal and wrong positioning.
  7. Releasing product as a laggard.
  8. Save yourself from getting outcompeted.
  9. Missing the process of converting feedback into a feed-forward.
  10. Business model of building Complete ecosystem.
  11. Conclusion.
  12. FAQs.

 1. Missing Innovation Around The Customer’s Money-Making Model.


All these businesses, companies/startups first calculate their money-making model but they fail to notice what is the money-making model of their customers.

Until you won’t notice the customer’s growth, profitability, liquidity, productivity, gross margin, revenue, retention, cash flow, inventory turnover, etc your business won’t be expanding in the way that you want.

How innovation comes? When you start solving the problems of the customer’s life which he cannot solve. Innovation will be done through customer’s needs only.

Many startups in India are copies of foreign startups.    

Examples :


2. Negative Cash Flow And Negative Working Capital.

This is one of the biggest reasons why a startup fails.

‘A cheque in hands means nothing….you need cash’. Profit and cash both are important. Both are different and hence both come in different ways.

It May be possible that You are making a profit in books of accounts but your payment of cash gets delayed. This is called a negative cash flow. 

Now due to this cash delay in the market we contacted the funding agency, and after one limit they stopped giving us funds. Therefore negative cash flow is one of the biggest reasons for startup failure.

Maintain your positive cash flow, the product being sold try to get your product in advance or in time.

To increase positive cash flow you need to have some advanced knowledge of the share market in which you learn how to manage cash flow in the market.

The best example of it is D-MART which is an Indian startup/business that manages their positive cash flow throughout the starting of the business because Radhakishan Damani (founder/owner of D-MART) has knowledge of the share market as well. 

D-mart operates limited products in its retail chain stores where the other retail chains offer many more products. D’mart keeps the inventory low and annual turnover high. 

They mainly operate in food and groceries. So they use their capital in the market and increase turnover about 11 times a year. It means their stock was bought and sold 11 times in a single year.

Example of Failure startups is Askme.com, Auto raja, Alentpad, Fashionara, Cab auto, Frankly me.

3. Expansion With Negative Margin.

Many things needed in the margin such as market acquisition, loss-leading strategy, selling cheap. 

But if you are not clear what will be your profit source in the starting, Your startup will fail at one time. 

What normal people do is to sell cheap products they forget about the margin to be put on the product. It is very important to be noted about the margin plans to be made.

Startup name
FY 2017-18FY 2028-19
Loss (in crore rupees). source

4. Lack of talented manpower.

A talented manpower is the most important thing needed to start any business.  

You should be having people who are talented with high potential, high performance, high skill, high will. 

You should be testing their competency mapping or competency assessment, their ideation into execution. 

If you have those people who can execute your visualization. These are the most needed qualities in manpower to build a high-performance team.

5. Scalability With Recurring Revenue Model.

Scalability means planning a business expanding model.  

Many startups are very profitable, many of them have better margins and have better regional strength(local area startups) but how it can be expanded they didn’t plan for it and due to this they fail after a limited time period. 

Therefore they need to be knowing customer retention and recurring revenue repeatedly which are assured for long term contracts.

There is a need to plan the scalability of the business and the recurring revenue means regular income methods to be built so in this way they will be having their most trusted and most regular customer for the long term.

6. Mixed Marketing Signal And Wrong Positioning.

We can say it is also the biggest problem for startup.

People don’t know how to position their product in the market. Who is your perfect customer and your imperfect customer,  What is your perfect product and your imperfect product.

Your product was not planned properly and Your customer segmentation is not planned properly. You should be knowing the perfect market demography and market psychographic and then present your product there only.

Now  Search your own “SINGLE SIGNAL” means you need to find your own specific identity.

Are your products newest in the market, problem solver for people, best for customers, convenient, cheapest, the best value, most prestigious, maximum feature in their category?

All these positioning to be known according to which you will do your product’s packaging, branding, marketing, scheming policies, team. 

Example :

“THUMS UP – TASTE THE THUNDER” .. AAJ KUCH TOOFANI KARTEY HAIN, means their direct motive is to produce excitement/energy in the consumer’s mind.


7. Releasing Product As A Laggard. 

Laggard means delaying the launching of their product in the market. 

They launched their product after saturation in the market and many companies had already been established in the market for their particular product. Therefore they Failed in product marketing.

Your business mostly depends on the product’s timing, the adoption curve of the market. This is one of the biggest reasons due to which the company/shopkeeper struggles and then fails after a certain time of period.


Nokia was one of the biggest brands all over the world but the reasons for the collapse in Symbian OS are lack of applications and UI.

(After facing competition from iOS and Android, Nokia continuously tried to improve their Symbian OS but failed to deliver something unique). 

8. Save Yourself From Getting Outcompeted.  

You started a business but your competitor is watching over you. 

For this you need to create an entry barrier for your competitor such as intellectual property rights, patents and licensing, proprietary technology.

By planning all of this you can create an entry barrier and keep your strategies secret from your competitor.

Try to do better brand equity or increased sourcing to purchase low priced items that help you in economy scale expansion.

This will shock the competitor how this can be possible for you. Thus it is the most important to create an entry barrier for your future competitor. 

(Read my this blog also for more related information)

9. Missing The Process Of Converting Feedback Into A Feed-Forward.

Most of the time customers give you feedback but you fail to convert it into feed- forward.

Sometimes customers ask you to improve your services but you wouldn’t pay attention. Customers are regularly giving you signals but you are ignoring it completely.

This is the biggest mistake that most of the businessmen make because they think that customers are asking for discounts and all.

Many times when a customer gives you negative feedback that means  The customer wants to be with you but they just want a little improvement. 

If your customer is not complaining, then it will be more dangerous to you because they will shift silently to your competitor and this will lead to a loss. 

‘Your first product is never your final product’ so there may need to bring many improvements to the product. So take your customers’ feedback seriously and solve it as soon as possible.

Example: “APPLE” is only known for their customer support.

They always try to solve all bugs and issues in their next system or they also provide time to time updates to their old customers therefore they are able to build a powerful relationship with their customers. 

10.  The Business Model For Building A Complete Ecosystem.

The ecosystem is the kind of web in business. It means depending on others for our survival.

The whole society, the community comes together to form an ecosystem. In business you need to get connected with the whole world and form Bond with the whole world.

Examples: “YOUTUBE” builds an ecosystem for all. All marketer or salesmen or teachers sell their service/content to the audience or customers.

So If Youtube vanished, it would be a huge problem for all. 

SAME AS FOR “GOOGLE” OR “APPLE” because they all are big brands with high audience size. 


So we can say at last that all these strategies can help you to take any startup to the next level.

Avoid these mistakes in the Startup of Transport, Services, Manufacturing, FMCG, Agriculture, Education, Entertainment, Hospitality, Food & It Sector Etc.


What is the biggest reason behind startup failure?

The biggest reason for this is the “lack of exactly needed innovation”.

How many Indian startups are the copy of foreign startups?

Many startups like Flipkart, Gaana, Ola, Oyo are the copies of Amazon, Spotify, Uber, Airbnb respectively.

What startup means?

A startup is a youthful organization established by at least one business people to build up an extraordinary item or support and put up it for sale to the public.

Is Uber a startup?

Uber is a ride-sharing company that was founded in 2009 by Travis Kalanick and Garrett Camp, a successful technology entrepreneur that had previously launched Stumbleupon.

Is every new company a startup?

Being recently established doesn’t in itself make an organization a startup. Nor is it vital for a startup to deal with innovation, or take adventure financing, or have a type of “leave.” The main basic thing is development.



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