If I were to define a Startup in one word, that word would be 'crazy'. Nothing about a startup is anything but crazy, right from the people involved to the work ethics. Startups basically aim to disrupt existing markets by exploring something different, something that hasn't been tried before or something that till date has been just a distant dream. Startups differ from small companies in the aspect that startups explore and adapt their models several times before getting it right and small companies implement existing strategies.
For a startup to be successful they need a passionate mix of dreams and determination. This has been the case with all companies which disrupted the market with their ideas and its implementation. Steve Jobs with Apple, Bill Gates with Microsoft, and any other market disrupter were at some point startups with vision and tenacious leaders at the helm.
Although, not all startups turn out to be Apple or Microsoft. Startups face one hurdle after another and only the boldest make it. Some of these hurdles include:
No Market -
There are situations where there is no market or people to use the product, even if it excellently executed. This may be due to improper or no planning. And by definition,startups tend to try what hasn't been tried before, it may be so that what they tried wasn't really a need for a lot of people.
Most startups eventually run out of money if they are not able to stick to the deadlines set by their investors or worse, are not able to raise any investment in the first place. Startups in contrast to bigger,established firms have a lot more pressure to grow fast and be more dynamic in nature.
Underperforming Team -
However passionate the leader(s) may be, it is essential to have a team who are passionate and hardworking. Although one or two bad hires may not be much of a hindrance, a poor team can adversely affect startups.
Startups usually neither have the deep pockets nor the influence or contacts that the big players which can be a problem if a big firm enters the same market especially if the startup is cash-strapped.
Startups have to constantly evolve to stay ahead of the game and have the right leader, the right team and most importantly be in the right place at the right time to stay relevant.