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Why too many startups run out of money too fast

2017-09-05 12:55:43 | Legal Services
Most of the startups fail, a risk that some say ishowever growing as funding that once had poured into the booming tech market however begins to slow. For the founders and employees, the results can however be devastating.

Startups mayhowever fail because there’s no market for their service or the product, their technology doesn’t either work or it might also be because they either grow too quickly or either too slowly. But their personality also comes into play -th entrepreneursgenerally tend to have an appetite for risk, an elevated level of self-confidence and they also have a tendency toward aggression

The purpose of this article is to make the reader ware of the fact as to why too many satarups run out of money too fast .

Most of the startups generally suffer from one problem which is that , they are typically so focused on the aim of building their product, that they generally don’t raise enough capital in order to cover essential sales and the marketingactivities that will however allow them in order to better attract the additional venture capital down the road. As a result, many of the startups generally run out of money soon after launch, however stalling out before they thus reasonably had a fighting chance.

The root of the problem which thus really comes downis to better their education. Entrepreneursgenerally need to learn early on that one can’t generally launch a startup unless one however has raised enough capital for both, the product development and also the initial sales and the marketing activities. They musthowever learn the essentials that all the investors generally look for: rapid user growth, proven customer acquisition metrics from the previously tested sales and the marketing channels and also knowing the best, most of the cost-effective sales and the marketing tactics in order to stretch their limited budgets.

However , by focusing on this education problem, one can however originally thinking about building a startup curriculum, which is in a university-style setting. But, provided it is given as to how quickly technologies and the marketing tactics are evolving. This couldhowever be taught through the startup incubator or either the accelerator programs, but that was however only available to the small percentage of applicants that thus get accepted and are also only for the short period of time .

The aim should however be in order to find a solution that would thus appeal all the companies that however had the interest and the resources; a program that would however grow with them through all the stages of their growth – from a freshman year through the senior year, for the purpose of using the education analogy.


One however has to realise that the agencies who had their finger on the pulse of all the rapid changes in the technologies and also digital marketing tactics had the solution to the aim aimed above. But, it was however not the large agencies who ae considered as the jacks-of-all-trades and the masters of none. The boutique, niche agencies arehowever the deep domain experts in their particular field, for example, the search engines or either the social media.

And, also more importantly, these boutique agencies that arehowever smaller in size and are also entrepreneurial and they also have first-hand knowledge of how to stretch startup marketing pennies into the revenue dollars. Thus , by rolling up these services into a one-stop shop, which is however managed by one person from the team, the startup “excubator” model was however born in Chicago with the launch of Ensemble in August 2013, of which the Red Rocket is thus a member company.

But, in order to really appeal to the startupcommunity, one however needs a more attractive pricing plan that was however more affordable to the startups — one where 20 to 40 percent discounts would however apply for bundling the services needs into a one “digital services suite” of the expert vendors. In this model, the excubator would however also considerthus taking an equity position in these businesses, so it is however actually the fact that had a vested interest in order to help these businesses succeed, as the partners with the entrepreneurs over the long term. Thishowever evolves the excubator members’ revenue models from the normal “short term fee driven” model thus in to a more logical “long term venture capital return” model, which if however done correctly, should thus improve the a typical startup’s odds of the success which is thus from 10 percent to closer to 30 percent in the process.

However , the founders of LegalRaasta a startup which provides legal services have over powered these hurdles and have ended up in providing more than 100 + services . One doesn’t even have to go out , as it provides online services .

Choosing LegalRaasta is beneficial as :

1. It has , 30+ offices in India

2. It has 10+ years experience

3. It helps to save your time

4. There is a cash back guarantee

Some of the services which it provides are :

1. GST Registration

2. GST Return

3. ITR

4. TDS Return filing

5. Business income return

6. Bulk return filing

7. Revised return filing

8. Respond to tax notice

And many more services .

This article has been contributed by Simmi Setia, Content Writer at LegalRaasta, an online portal for Section 8 Company Registration, Nidhi Company Registration, IEC Registration, Fssai License, File ITR Online, Copyright Registration, Patent Registration, Trademark Registration.

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