Founder'sChronicle June,2023

Opportunities for funding have increased as a result of "Shark Tank's" popularity, particularly for Indian companies. After watching the success of comparable enterprises on the show, many investors have developed an interest in Indian entrepreneurs

Better pitching abilities: Many Indian entrepreneurs have improved their pitching abilities as a result of watching "Shark Tank" They now know how to persuasively argue for investment and communicate their ideas.

The show has also increased awareness of angel investors, who are prepared to fund early-stage firms. This has aided a number of Indian businesses in obtaining funding from angel investors who are searching for fresh and interesting concepts.

Lessons on Financial Management from "Shark Tank"

Sales Do Not Mean Success, so Know Your Numbers

Stay grounded.

Address a problem in an original way capitalists and other investors, startups are a major force behind economic growth. Spirit of Entrepreneurship The entrepreneurial spirit inspires people to take chances, be creative, and go for their dreams This may result in fresh perspectives, new ventures, and fresh chances.Overall, as they foster innovation, job creation, and economic growth, startups and entrepreneurship are crucial elements of a strong economy

Indian start-ups face numerous challenges while developing their business According to a study conducted by IBM (Institute for Business Value), more than 90% of Indian start-ups fail within the first five years of their operation. Here are some prevalent cause of the failure of Indian Start-ups:

Lack of market research: Poor market research can result in a weak understanding of customer needs and preferences. This can lead to the development of products or services that do not meet the demands of the target market This can result in poor sales and ultimately, the failure of the startup. For eg. Kingfisher Airlines was launched in 2005 as a luxury airline in India The company failed to conduct proper market research to develop a sustainable business model, which led to its downfall. The airline faced financial difficulties due to high operating costs and a decline in the demand for luxury air travel In recent years, there has been a growing debate over whether entrepreneurs should be allowed to receive tax breaks While some claim that tax breaks could lead to an increase in innovation and improvement of the economy, others claim that these breaks would be wasted or abused To understand this debate, it is important to consider both sides

Poor management: The lack of experienced and competent management can cause a start-up to falter Founders may have strong technical skills but may lack the experience necessary to manage a growing organization. Hiring the right kind of people is als crucial for company progress Satyam Computer Services was a leading Indian IT company that was embroiled in a major financial scandal in 2009. The company's management had inflated its financial figures to attract investors and customers, leading to a loss of trust in the company and eventual failure.

Product Market Fit: This is a simple factor that most start-ups fail to include in their detailed business plan. Product market fit is simply an assessment of how good a product or service fits into the marketIt analyzes if the product is needed by the customers. You can sell water in a desert but there’s no point in selling sand in a desert. If your product has no utility or doesn’t solve a problem for the buyer, it can fail Marketing is important for every company but it’s not like you need millions of dollars for a good marketing campaign. Anubhav Dubey, the founder of Chai Sutta Bar had no funds to market his venture, but he had creative ideas “He offered free tea and coffee

CRED, for example, the start-up came out of the box like a superstar with million-dollar ad campaigns,edited a disruptive business model, capturing a majority in the credit card bill payment industry. But for every INR made it spent 800 INR in expenses. It’s an interesting business model but still CRED reported a loss of INR 1,279 Cr in the FY22

Limited ability to Innovate: Innovation gives companies an edge over their competitors, but lack of innovation in business can cause failure Research indicates that in the past 21 years, 52% of Fortune 500 companies have gone bankrupt, been acquired, or ceased to exist due to digital disruption. Kodak and Nokia are two companies that were once dominant players in their respective industries, but eventually fell into decline and struggled to compete with newer, more innovative companies.