Few days ago, i had a discussion with my Graduate school friend on start-ups life cycle and their success. Some of the points mentioned below may interest you and could help you as well.
Few points about Start-up life cycle:
1- On an average Out of 100 start-ups, 90 start-ups dies in within 1 year.
2- Those who survives (say 10) keep themselves on Ventilator via Loans or Family support.
3- Rarely 1 out of balance 10 emerge as a winner after 3-5 years.
4- Incidentally there is no real quick way to ride on growth curve.
5- If your venture is successful, then just imagine its liability and assets after 10 years, you will be amazed that liabilities will remain more with growing assets size.
Why Less start-ups:
1- Success ratio is very less.
2- Family opinions differ maximum times as they know things better than us and we keep disagreeing due to our own intuitions and ambitions. But in maximum cases Family do support once you start, that’s a blessing!.
3- Only very few people start a start-up as their full-time, so they are not vocal about it and only close ones get to know about their start-up.
4- Those who start full-time does not speak loud about their start-up as it adds more pressure and being loud does not bring huge business and success as well.
My learnings (Gyan) so far:
1- Your B-plan should be very very clear and discuss it with any tom-dick&harry. If you feel your B-plan is unique, then google and you will find that more than 100 people had already failed it.
2- Your approach has to be different for Product oriented or Service oriented venture.
3- Know yourself first rather than judging your team members and their strengths.
4- Your core member team is always virtual, everyone has their own back-up plans with less strings attached. Still do count on your core team to find the long term partner(s) among them.
5- Only hire highly committed and dedicated employees and kindly release them as early as possible if they are not meeting their targets.
5- Profitable business comes more from business relations, once you become a stable and trusted ventures.
6- You have to lose something to gain something.
7- Reach your office to learn more gyan.