ADVANTAGES & DISADVANTAGES OF STARTUP BUSINESS!!
But First, What is a startup?
A startup is a newly established company founded by one or more entrepreneurs. The startup company aims to offer unique services or products to the market, solving consumers’ problems. It generally focus on the launching of operations that require a small fund. The initial funding is provided by the founders themselves, their families, and or their friends. Once the startup business grows, the investors and lenders may join into source the budget. Startup business has boomed in recent years and has become the new norm, especially during the COVID-19 crisis.
So, Lets focus on Advantages (PROS) now!
1. New-Age Working Style (TEAM CULTURE)
Startup companies are based on the modern concept that engages the young brigade, and management is also set up to enjoy working. Wellness programs, effort-based incentives, allowances, and subsidized meals are all included in today’s modernized culture. They look for employees who can acclimate through their skillset and find innovative and fun ways to accomplish the assigned tasks.
2. Best Place to explore Potential (EFFICIENCY — LEAN & MEAN)
Creative minds brainstorming on the particulars of a project, tend to explore the better side of potential every day and startup firms generally consist of 4 to 5 members who solely take up the responsibility to deliver the end service. The benefit of startup in terms of extending the ability to learn more things that are usually unthinkable in a large organization with a traditional working atmosphere.
3. Flexible working hours (FLEXIBILITY/ CREATIVE FREEDOM)
Speaking of freedom, startups provide much-needed space so one can thrive under diverse conditions. Liberty at work helps to focus on a campaign better. Employees can come to work earlier or late per their liking and leave early or even work late hours depending on the project’s requirements. Many startup companies had also given the employees the freedom to work from home during the COVID-19 crisis.
4. Agility
Startups are smaller and less structured. They are also innovative and keep improving their business models, processes, and portfolio like Mystartupyatra and Myplacements. These allow to adapt to disruptive technologies and changes in market conditions.
5. Better Utilization of Resources (PERSONALIZATION)
As startups involve creative thinking, optimum use of skills, and resources, entrepreneurship tends to excel under pressure. So, more focus is maximizing the output depending on a tight budget a handful of tools. Unlike the traditional work culture, employees have the authority to check their work on their own. Thus, employees are often allowed to make crucial decisions on their own to contribute to the progress of startup business.
AS WE ALL KNOW THAT EVERY PARTICULAR THING THAT EXISTS IN THIS UNIVERSE HAS BOTH PROS & CONS!
Let’s now focus on Disadvantages (CONS)!
1. There’s always plenty of work (TEAM COMPOSITION)
Starting up a business means starting from zero value. So one have to give 100% to generate half the profit, shedding blood, sweat, and tears. Building brand from scratch and creating goodwill does take caution and a strategic game plan, even if the rewards are insufficient. A successful startup requires founders/co-directors with complementary personalities and competencies.
2. Risks of Failure (IT’S OK TO TAKE RISK SOMETIMES!)
Most startup companies fail to make their mark due to a lack of proper planning, management, and execution. In fact, even a minute error can lead to big risks in a market flooded with competition. Staying up to date is one of the essential prerequisites of a startup company. Researching consumer trends, drawing out inferences and estimates are the main tasks for startup business.
3. Funding Problems (RESOURCES)
The initial phases are the most crucial as well as toiling. Even though the initial investment is low, the founders have to invest considerably and responsibly for the venture. The investors and entrepreneurs need to make sure that the idea pitched is smart enough to be sustained in the market’s neck-break competition.
4. Inexperienced can be a big trouble (STRESS)
Working for a startup is fun, but it could also become very stressful. Low compensation, many responsibilities and long working hours are more or less expected. Add legal prosecution, imminent business failure, and screaming customers and work becomes unbearable. Hands-on experience is the only key to survive in a start-up business. Leading a start-up needs a lot of hard work and experience to help you manage and lead a team of young professionals. Tt could also become very disappointing as you have to initially put more investment into the business expecting less or no income.
5. Uncertainty
Unfortunately, around 44% of startups fail after five years of launching. The top reasons why startups fail are lack of investment, market competition, disharmony among the team members, and poor marketing. No business process is stable at uncertain times like the ongoing pandemic. Most startup businesses failed during the COVID-19 crisis due to a lack of contingency plans and funding to provide employee benefits.
Wrapping Up, will not make it more lengthy!
Startups continue to succeed all over the world, but the odds are stacked against them in countries that have a closed economy where an innovation culture is lacking. Low revenue, many responsibilities, and long working hours are common attributes of entrepreneurship. Employees may have to make it work with a low salary while giving in tireless effort and dedicating most of their time. Many young individuals delve into a start-up business without prior considerations and adequate knowledge.
Good luck, in whatever you may decide. Please think about the advantages and disadvantages of starting a small business!
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