Is ‘start-up’ trend growing too fast and cluelessly?
By The Nation

 

Surveys discover misguided new entrepreneurs and spending-spree

 

In today’s business world, one of the most dangerous things is to assume that you know the technology and its direction for certain. The phenomenal rise of the “start-up” trend, however, seems to have a lot to do with assumed technological visions of young entrepreneurs, which is quite a risky situation. Analysts have pointed to misguided assumption as the main reason why the new breed of businesses, which are compact and embrace revolutionary operating and management styles, are running into one big snag after another.

 

The year 2016 was originally tipped as the year when start-up businesses would bloom. The prediction was correct in a way, because many daring young entrepreneurs emerged to challenge the conventional empires or organisations, largely by utilising the greater availability of technology as well as technology-facilitated networks. But insufficient funding, clueless spending, misreading of the markets and technological advances, and ever-changing enthusiasms of the founders have apparently proved to be their downfalls. In addition, many in the start-up landscape know how to invent but do not know how to sell.

 

Full story: http://www.nationmultimedia.com/news/opinion/today_editorial/30302362

 

-- © Copyright The Nation 2016-12-19

But it's a great app! And the icon looks great too!

 

But nobody has given much thought to a realistic and specific business model that the app will support.

 

Or put it another way the app, of itself does not generate revenue and margin.

 

Therefore more business failures. In fact globally, for years and on a long-term basis it's well recognized that around 80 - 85% of new business fails within 30 - 90 days in all countries.

 

 

46 minutes ago, scorecard said:

Therefore more business failures. In fact globally, for years and on a long-term basis it's well recognized that around 80 - 85% of new business fails within 30 - 90 days in all countries.

 

30 - 90 days in all countries? Could you please give me source for that? 

Successful business is so incredibly easy that almost anyone can do it ! Just find a commodity that is in general demand, and supply quality goods at a fair price. Voila, zee customers zey vill come ! Most failures that I have observed were due to greed and uncivil interaction.

2 minutes ago, phantomfiddler said:

Successful business is so incredibly easy that almost anyone can do it ! Just find a commodity that is in general demand, and supply quality goods at a fair price. Voila, zee customers zey vill come ! Most failures that I have observed were due to greed and uncivil interaction.

 

 

Also due to lack of any even simple market research, and no attention to costs (hire all your aunts and cousins and friends and the revenue doesn't even cover 20% of your wages bill.

Just how many businesses that are ready to start have any financial planning in the short medium and long term. That coupled with some market research and astute business practices and then you just might make it.

A classic example here is seeing 7/11 shops. I have seen on numerous occasions one opening up opposite and even next door. Even the fruit seller will start and then before you know it there are 10 fruit sellers all next to each other competing for the same business, which eventually fails. These business practices that seem to be culturally ingrained are a sure was to ensure business failure. Just like the mentality of fewer customers, so we will up the price. I just can't see things changing.

How many successful businesses advertise their products by driving slowly through city centres, holding up traffic whilst would-be customers fume and hear nothing of the garbled message coming from the loud speakers?

 

Unlike Japan, Thailand missed the Industrial revolution by a mile.

 

They then found themselves assembling other peoples electronic, automotive and consumer goods in the post-war boom.

 

As might have been expected, the start-up bus left without them.

 

It's their destiny.

 

Edited December 19, 20169 yr by Enoon

Just watched a bar close and a massage parlor after some reno work move in. I wonder how long it will be before the massage  parlor closes down and a bar moves back in. Would be interesting to know how many new businesses started up and how many failed. I always hear so much about the former but little about the latter.