Mechanics of start-ups

Abstract

The IT industry has grown at a rapid pace in the last decade and is expected to do so in the coming future also. A rapidly growing industry will always witness an increasing number of start-ups trying to tap the hidden potentials of the virgin industry. This leads to many players competing in any given field at any given point of time, which in turn means the time to market is the all important factor. Somewhere in the mad race, processes, methodologies and analysis are left untouched. This ultimately spells the death of more than 90% of these start-ups. The prominent reason for the failures of these start-ups is not the idea, the people or the industry factors, it is the lack of experience. The start-up industry is full of inexperienced but enthusiastic entrepreneurs who have little guidance and almost no material to act as a reference, which will guide them in the process. Although there are web sites and even books that give some information which entrepreneurs need, there is no comprehensive listing of all issues that a start-up faces. The information is scattered and not very useful in terms of presenting and evaluating the different options regarding the various issues. This paper is an attempt to put all these in place so that it may be helpful for any one involved with start-ups. We attempt not only to provide this comprehensive information but also an evaluation of these issues. These are addressed from the perspective of the entrepreneurs, the venture capitalists, the service companies looking at business from these start-ups or any one interested in learning the issues involved with start-ups.