STARTUP - BENEFITS & DETRIMENTS

This is the last blog in the series of blogs regarding Startup Finance. Please refer to our other blogs if you haven't already. We are going to discuss the benefits and detriments of startup. We have seen how startup is an emerging sector and a feasible option for many new entrepreneurs.

We can list down some of the benefits of startup as follows:

1. Flexibility : Startups are small and are not that well-structured, which can prove to their benefit. This allows them to adapt to changes in technology and market conditions.

2. Efficient Utilization of Resources : Startups have less administrative overheads as compared to established companies as they know their limitations and try to use all the available resources at optimal level.

3. Alignment with Company Goals : People working in big companies are easily attracted to big salaries or higher positions and thus, may lack being on the same page as the company in terms of goals. Startups mostly have employees who are passionate about their jobs and hence, work with all their potential for achieving company's goals.

4. Personalization : Startups take time to study and understand their customer's needs. Therefore, they are able to provide personalized services to customers. Their products have a personal touch.

5. Self-satisfaction : Last but not the least, it is fun to work in a startup. You are able to choose your clients and one is also appreciated for innovative ideas. It brings a feeling of self-satisfaction.

Following are the detriments of startup :

1. Risk : Startup is deprived of competent staff many times due to the risk factor, as people tend to stick to their jobs providing job security. Also, the major reason for failure of startups is that they overestimate themselves many of the times, which makes them vulnerable to risks they have never even thought of.

2. Market Share : It is difficult for startup businesses to capture market share as people tend to stick to products they have always bought. So it is very important for the startups to study market properly and make sure to implement effective marketing strategies.

3. Resources : Startups face many issues due to lack of resources. They have to make do with what is available with them, which makes them lag behind even if their product or service is superior to that of their competitors.

4. Returns : Startup take up a sweet part of you as it requires hardwork, determination and perseverance but it can be quite slow fruit bearing tree. That may lead to frustration and stress for all the components of the startup.

5. Team : It is very essential to form a team that is passionate about the business. Even a single member who does not allign with the goals may lead to failure of the whole startup. And also it it important for the team to be compatible so as to work with co-operation.

So to wrap it up startups succeed all over the world and also there are many examples of failed startups, it is upon you to study every step you are going to take and taking calculated risks for leading a successful business. Do share your thoughts in comments.