Vlad Rigenco of Vaughan, Ontario is a real estate agent turned businessman, and is now starting his own mobile app to help connect individuals to potential employers, businesses, and organizations. Dood Inc., too be launched at the end of 2019, will be a live stream platform that will allow individuals to showcase their skills and talents, while also allowing businesses to search for potential candidates by industry. Vlad understands that as a startup, it can be difficult to navigate the markets and find success, and has found that 90% of all startups fail within the first year. There are many reasons for this, and he has highlighted a few important ones below.
One of the biggest reasons for failure is poor planning and insufficient market research. Vlad Rigenco explains that to ensure success, proper market analysis must be done before-hand to assess for optimal environment, competitor research, understanding the customer/client, and in general to assess for the need of the product. Many startups fail due to shotgun approaches of coming to market too quickly with no research and no plan, with either a product that is not in demand, or one that is oversaturated with competitors. Factors such as the target audience and prices should be heavily scrutinized well in advance and should be adapted to allow for the best outcome. Business proposals should be discussed and revised as needed, and criticism should be welcomed to allow for strengthening of the product/business. The startups that fail would agree that planning includes proper networking and connections, which allow for continual support and growth.
Most of the times, the ultimate reason for a startup shutting down is running out of funds and being unable to sustain themselves. People tend to overestimate how much inflow their company will have, and underestimate their costs, both for starting up, and maintaining the product/business. In the end, inflow dips below how much is being spent, and the startup goes under. It is generally suggested to be realistic in that profit will not be made for at least the first couple years, and enough savings should be available to dip into as needed for operation. This does not mean increasing loan limits, as this can be a catalyst for failure as well because many startups will use up the entire loan initially and be left with nothing down the line when more money is needed.
A detriment to startups is having an individual with no management experience, or poor management. The few startups that are successful have a great leader that is experienced in the ins and outs of business including finance, purchasing, networking, hiring, and managing. If someone with no experience is heading the startup, it is much more likely to fail, as there is no sense of direction. While responsible for daily activities, they are also responsible for potentially restructuring and regrouping as needed to help achieve changes to be successful. With Dood Inc., Vlad Rigenco hopes that new startups will have the ability to find and recruit individuals by looking for specific skillsets they feel would be advantageous to their business which will help to reduce the stress on management.
To be able to thrive as a startup, the company must be willing to change and adapt to the market and demands as needed. Vlad Rigenco explains that continuous learning is part of the process, and goals and targets cannot be something set in stone. Not everything will go exactly as planned, and this should be expected. Being too rigid on plans and focuses will eventually lead to failure, whereas adaptability can help the business thrive and grow.