Entrepreneurship has already been hailed as the next big thing for India, and with the ruling government leaving no stones un-turned to boost the manufacturing sector, start-ups have received the much needed impetus and boost that they had been craving for a long time. But then, the favourable circumstances, by any means, do not reduce the risks that come with the advent of a business venture. Failures still occur. And often, it is the lack of guidance and proper grooming that leads to the failure of a business endeavour. Here, we bring to you a list of some of the failed startups of the year 2014 along with the reasons behind their demise as well as the lessons to learnt for the budding entrepreneurs.
Going by the name, Pirate’s kitchen was a dining restaurant. Acording to the founders, the scarcity of knowledge in the field of hospitality industry lead to its downfall.
- Focus on the core competencies required for the business.
- Do not always look for an appropriate co-founder. Drive the company yourself.
Accumulated content on a variety of fields such as politics, branding, social life, and also took copyediting projects with a promise of delivering the best results. Lack of clarity of idea lead to its failure.
- Proper co-ordination between human resource.
- Focusing on the core projects and requirements.
An enterprise that was meant to commercialize the technologies of its client institutes. Lack of supply an ddemand even after toiling for 18 months lead to its shutdown.
- Build a strong foundation with a variety of skill sets.
- Lean start up must be used right from the inception.
As the name suggests, it was an e-commerce company targeted to deliver handloom products from the local looms of Varanasi. According to the founders, customer satisfaction wasn’t quite there and the responsible personnel were also not properly involved.
- One job at a time.
- The team must be an effective one and must be dedicated.
With a swaggy title, this start-up was meant to sell different varieties of sunglasses like wooden glasses or the funky ones with captions. The cost behind the project was too much and and the construction of wooden glasses was also a problem.
- Know your industry and product that you’re trying to build.
- Gather a team and resort to mentors for guidance.
- Do not aim for perfection at one go.
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It was supposed to be a market place for bed and breakfast. Lack of an effective team, which eventually lead to arguments between members caused the company’s demise.
- Paperwork is a must.
- A proper team is quintessential.
An e-commerce venture that came into existence to show discount on clothes. The website wasn’t attractive and the team wasn’t an efficient one. Funding was also a problem.
- Build an effective team
- Start funding internally.
An e-commerce website that sold smartphones online in Mumbai.
- Difficult to compete with Amazon, Flipkart and other biggies.
A social network with its purpose to create the portfolios for its users. Team building, again, was the problem.
- Team building is essential.
Late night food
It was a delivery service targeted at delivering food and other essentials that are often required at late hours through outsourcing. Financial problems lead to its shut down.
- Proper scaling up of the idea.
- Back up with money.
Article Credit: Kislaya Srivastava.