Look before you leap: these 8 startup ideas are failing miserably
Who doesn’t love a good entrepreneurial success story? A successful entrepreneur is a reflection of a risk-taking person who must have overcome several obstacles in his journey to build a thriving and successful company of his own.
But, there is a darker side of the story as well. If statistics are to be believed, more than 90% of start ups fail. What really leads to such failures, you may ask. Even as there are various reasons for such failures, here are a few startup ideas that are at high risk of falling flat. It’s always better to avoid them:
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There are just way too many new products in the market. But a quality job in a good MNC is limited. As a result it’s easy to float an HR startup but too hard to stay afloat. Also, the quality of employees brought by these startups are often not as good as the ones hired by the employers themselves. Restaurant reservation
Unless you are creating something to help the restaurant owners, your effort will go down the drain. This takes a lot of inventory, continuous flow of funds and a bigger workforce. This business is a rather risky affair. Food delivery
There was a time when receiving hot food at doorstep after a long day’s work was merely a far-fetched thought. However, with its advent, several players jumped into fray. Today, it’s no big deal if you get food delivered. Also, complaints regarding delivery services are increasing by the day and restaurants are finding it difficult to cope with it. Grocery apps
Planning to become another Grofers or Big Basket? Let us caution you, don’t try this at home. In last few months, there have been numerous deaths of online grocery providers. The grocery industry runs on a tight value chain, establishing unit metrics and profitability becomes a challenge. Apart from that, the retailer has to pay 5 to 6%, when he hardly makes 8 to 10 % margin. In spite of doing this, the online grocers do not deliver the same customer experience as delivered by the retailer. Educational start ups
Educational start ups
While India is en emerging market of Ed-Tech startups, this space is yet to win investor confidence. In his blog on why Ed-Tech startups don’t succeed, Avichal Garg pointed out that several entrepreneurs in the education space build the wrong kind of business models. For entrepreneurs, education seems to be a product with deep-rooted problem. However the truth is that an average person thinks of it as a cost problem. Garg also wrote, “Building in education does not follow an Internet company’s growth curve. Do it because you want to fix problems in education for the next 20 years.There are opportunities in education in servicing the poor in the US and building a company in Asia — not in selling to the middle class in the US.” Dating apps
Of course dating through app in this country is a new thing. But, definitely it’s not a viable business idea. With so many start ups, a Quora user Chandra Kalle points out that not many survived in the market. It’s only Truly Madly or Woo that are still popular. Since it involves a lot of privacy sharing, dating through technology isn’t something that mass wants. Fashion blogs
Even 3 years back, any press meet would have bloggers as priority. People having a good social media following was deemed to be a grand way to promote a brand. Of late, the brands have realized it’s no fun. While blogging is a different ball game altogether, average brands are no more interested in investing in blogs. E-commerce portals
Yes, many people dream of starting another Amazon. Trust me, this is surely going to fail. This kind of ecommerce or even if you are taking a slice out of the same thing, has reached saturation. Also this kind of a start up would require a lot of moolah to be plugged in which in no way guarantees survival.