The challenges of starting a business are roughly the same anywhere, and are not unique to India or anywhere else in the world. All startups are of two kinds: those that plan to make upgrades to ideas that already exist, and those that spearhead new ideas. Regardless of the nature of your business, the basics of its challenges and operations will remain the same.
If you are facing challenges, you are not alone. In fact, a recent study from the Kauffman Foundation reveals that 33% of cofounders of tech firms in the United States, for instance, are Indian – but many Indians are still afraid to venture out and start their own enterprises, because of the fear of upcoming challenges. Here are some hurdles you will need to overcome if you are thinking of starting a business in India.
Building a proper team
When it comes to Indian mindsets, they dictate that once you get a big job, you will improve your career trajectory, compared to when you are starting a business. While this is partially true, because having a salaried job brings more financial security, owning a business is also great; especially when you have a solid team behind you.
Always keep in mind that you cannot succeed in managing business alone – but you need to have a proper team. If the team you have is an inefficient or the wrong one, then it leads to communication gaps between the team and management, having poor hiring systems, and little or no work on the product and whether it fits the market.
It is actually better to have over communication in your team, instead of under communication – as well as management taking responsibility over all the decisions it makes for the business.
Funding issues
Funding is among the biggest issues many startups in India face – in fact, a study by Venture Intelligence, an India-based firm, reveal that 64 startups received $242 million in the last year alone, but that is not enough for many enterprises. In addition, the long processes to even get venture capital mean that many business owners resort to their own pockets, as well as family and friends.
Regardless of the greatness of your idea, you need to remember there are tons of financial responsibilities you need to take care of, and it is hard to succeed financially until you break even. Not only are you handling the financial aspects of the product, but also handling marketing agencies, paying dues to your employees, and clearing any bills that come up in the business. This was even highlighted by Akhilesh Singh, the Co-founder of Stylecaret, who said, “it is hard for many businesses to break even in the first year, so it is vital that entrepreneurs set aside money that allows them to operate comfortably.”
Therefore, take the time to keep track of your accounts, building your possible financial networks, and working closely with your team to make sure the funds are always secured.
It is hard to sell
If you are trying to sell a consumer product, you will find it very hard to break into the market – not to mention the stiff level of competition. Many people are sensitive to price changes, and there are likely many businesses that sell the same things you do; making it very hard to stand out.
As we mentioned earlier, your business is not operating in a vacuum – so there is bound to be competition. That means you cannot afford to be lazy when it comes to marketing your products, making more people aware of your business and what you offer, and doing other activities such as influencer marketing, and so on.
In addition, when you decide to do a B2B sale for instance, a customer can take a very long time to make a final decision – it can even take some months. An instance is selling software to banks or a large organization, and you might get a negative response in the end, mainly because many companies resort to a ‘play it safe’ attitude that holds them back.
Law problems and regulations
You might underestimate the reason why legal implications are important in encouraging business startups, until you begin a business yourself. If there are too many laws in place that entrepreneurs do not understand, it becomes difficult to start and sustain a business – that even includes financial and taxation laws, and the time it takes to registering your business – which in India, takes a minimum time of 2-6 months.
There is some good news though, as the startup environment is improving considerably as time goes by. This is also encouraging many entrepreneurs, both current and potential, to be bold enough to venture out and start their own businesses.
Poor product experience
As we mentioned earlier, your business is not operating in a vacuum – so there is bound to be competition. That means you cannot afford to be lazy when it comes to making your products to enhance the user experience.
Taking the example of email preferences, people are used to good interfaces from the big companies – such as Gmail. Even in social media, Twitter and Instagram are very popular, and continue to improve their products for their users.
Take that as a lesson: if your product is poor, then users will not like it anyway because of their negative experiences with it, or they will not differentiate it from other similar products in the market. To stand out and succeed, it is important to make sure that your product stands out from other similar products, as well as the value it gives to them; especially considering that your business is not operating in a vacuum.
Conclusion
Operating a business in India is not the easiest task, but it is fulfilling when you do it well. that involves numerous things, but also involves knowing the challenges that your business can face, as they hold back your progress – so overcoming them is important to ensure the growth of the enterprise.