The concept of startups started a few years back in Pakistan. There are many questions regarding startups in the mind of people. Today we are going to tell all you guys need to know about the startups. There are several definitions for startups. It is generally defined as the newly established business. It is a company that is in the early stage of development. Currently, in Pakistan, there are over 100 startups that are working successfully. However, several startups are also closed due to their faulty management techniques. In the coming section, we will discuss all the startups
The startup is often called a newly established business. It is actually a company or a project that is initiated by entrepreneurs. Entrepreneurs are often called businessmen. The startup is initiated by a group of 1 or 3 people. They invest their time and money to generate revenue from it. Sometimes, people get confused between a small business and a startup, however, there is a minor difference between them both. The small-businesses are driven by profitability and stable long-term values, whereas, startups are focused on top-end revenue and growth potential. In addition to this, small businesses are usually standard businesses, whereas, startups are usually new business ideas or innovation.
According to a survey, more than 100 million startups are registered every year in the world. However, few of them survive. Check out the reason for the failure of startups under the next headings.
Idea and Startup
Well, there is a little difference between the idea and startup. The idea is something intangible and we can not touch it. It is present in our brains. On the other hand, Startup is a physical implementation of the idea. For example, if you click an idea of an online store and you create one on the internet. The physical implementation will be an idea.
Failure of the Startups
It is one of the deadliest nightmares for the entrepreneur. Usually, the ratio of the failure of startups is high. There are a number of reasons for the failure of startups. We will discuss each of them under this heading.
- Lack of management skills: Often these entrepreneurs don’t possess enough management skills. It is one of the prime reasons for the failure of startups.
- Failure of Business Model: Some of the entrepreneurs are unaware of the concept of business models and strategies, As most of them are inexperienced. Therefore, they choose such a business model that has more chances of failure.
- Lack of technical experience: Startups are usually initiated by the students are they don’t process any kind of technical experience in their field which may lead to the failure of the startups.
- Shortage of cash: One of the main causes of the failure of startups is the shortage of cash, So it is compulsory to take the right decision at the right time.
Well, according to research only 30% of startups survive for a period of 2 years and among them, only 25% of startups survive for over 15 years. It all depends upon the cash backup and the management of work.
Right time to start the startup
Well, there is a right time for everything. To start the startup there must be the right time. Obviously, if you are working in a job, you cant experiment to leave the job and start own startup. Similarly, the time when there are fewer responsibilities on the person. It is the best time to start and pursue your startup. The best time is during student life. While you are a student it is the best time for you to pursue your dream and startup
The process of money-making for startups
Well, there is a certain process by which the startups can raise money and capital. Capital is one of the most important things for any business. It is slightly difficult to raise cash in startups. The following are some of the ways through which the startups can raise capital.
Trade Equity or Service
One of the prime ways to earn from the startup is trade equity or service. In this, the startups provide their service or product and in return they take money. This is one of the most effective ways to earn.
Small Business Loans
To initially start the business, the startups can also take small business loans. Although, startups have to pay these loans back.
Incubators or accelerator
Incubators are also the source of money for startups. In this, the entrepreneurs present their ideas to the incubation centers and in return, the incubation centers provide them technical assistance and fundings.
Keeping a Day job
As mentioned that in the starting the startups cant earn well. So the entrepreneurs might need to do another job to feed the startup.
In bootstrapping, the expenses and internal cash flow is controlled. These steps are followed in the initial months of the startups. In bootstrapping we don’t take any kind of help externally.
Startups in Pakistan
The concept of startups emerged in Pakistan in this decade. However, there are many successful startups in Pakistan as well. In addition to this, there are few incubation centers that are working hard for startups. According to the survey, in Pakistan, there are more than 100 startups that are working successfully right now. Some of the famous incubator centers in Pakistan are Plan 9, Takhleeq, TICK, and NUST.
Some of the famous startups in Pakistan are
Intern Salary in the Startups
Well, the startups also pay to the intern. However, they can’t pay too much as they have to survive in the market. On average, the startups in Pakistan pays 10,000 – 20,000 PKR per month. Some of the startups also offer the job after the completion of the internee period.
Top Business Ideas in Pakistan
According to the world’s report, Pakistan is among the top places where a person can do business easily. Some of the fields in which you can do business in Pakistan are the following
- Medical store business
- Food business including delivery business
- Transport business
- Import & Export business
- Health Consultation business
- Woodworks and manufacturing
Whereas, some businesses require innovations. You might need to add some additional services to run your business. Similarly, you can do any business online, for example, blogging, freelancing, e-commerce, and delivery services. You can also turn simple casual businesses into online like iron smith business. If you advertise your business online you can get orders from there as well.
Read Also: How to apply for Takhleeq Business Incubator