Sergey Kartashov tells us that it is not easy for startups to become successful. Sergey Kartashov has pointed out three main reasons why startups fail. They are:
- Poor Management: Startups need to have strong and efficient management. Management has various departments including, developers, legal, marketers, etc. They need to work together and show character if the startup has any chance of succeeding. If even a single department shows inefficiency, the startup’s ratio of failure will rise.
- Having no business model: Startups mainly focus on building a unique product. They forget to focus on the financials. The investors take risks by investing on a startup. The startup needs to show the investors a business model. They need to show investors that they are serious with their money. If a startup fails to build a business plan for the investors, the investors will lose interest in the startup.
- Lack of project development strategy: Many of the startups’ heads lack creative thinking. They believe that their startup will be successful if they only get an idea and shape it into a product. It is not that simple and easy. It is easy in today’s world for a development to get lost in the flow of information. You need more than a unique product for becoming successful. Determining target audience, communication tools, feedback tools, scaling-project-calculation, etc. are mandatory for a startup. If they don’t focus on it, they are heading towards their demise.
Sergey Kartashov says the reasons for a startup’s failure could be endless. Internal politics, conflicts, deferring away from the main idea of the startup leads to failure. However, an expert of the field can spot the list during the initial analysis of the product. IT Asset Management is not simple thing as Sergey Kartashov knows everything about the field as he is the CEO of Generation Partners, headquartered in Cyprus. Sergey Kartashov says it is their job to analyze the market and look for startups to invest in.
Sergey Kartashov says Cyprus is the ideal place for relocating startups as the island has a growing and developed IT community. Sergey Kartashov says there are only few startups to invest in as they analyze the activities of the startups. They look at their ideas and their business and management strategies. Sergey Kartashov says it is easy for an investor to lose interest in the startup if they lack key points. The startups could have lethargic ideas, a lack of development plan, etc. The experts can see the warning signs easily.
Sergey Kartashov tells us a surprising statistics that around 90% startups fail during the first year. Of the remaining startups, half are unable to survive the following five years. Sergey Kartashov says the reasons why a startup can fail are endless. A simple lack of funding or internal conflicts can drive a startup towards its end. If a startup crosses the threshold, monetization is the next hurdle. Sergey Kartashov says an expert can identify the problems of the startup within the project studying phase. The experts have enough knowledge and experience to know whether a startup lacks something within their set chain. A startup needs to do their homework before expecting investors to invest their financials and resources in it. An investor needs to be attracted by the startups. The investors try to help the startups if they sense the startup heads have desire to improve and become successful. The investors help the startups to find the specialists and experts.