In 2014, according to Bis.gov, more than 400,000 new businesses were set up which sounds encouraging given the current state of the UK economy. However, 20 percent of those new businesses failed within the first year and 50 percent won’t be around by the end of 2016. To add further context; by 2016 end, 212,081 businesses will have gone under. So why is the number of failing businesses so high?
If we consider the current economic situation, it obviously makes things more ‘challenging’. But, what are the actual reasons why entrepreneurs fail to get their ventures off the ground? Whether it is UK or US why most of the startups fail around the world?
Some eight of ten new businesses fail within their first three years. Nine of ten venture-backed startups fail to generate meaningful returns, but I never thought my business (Not mentioning the name) would be one of them.
Numerous books have been written about winners like Apple, Google, and Facebook. Then what are those unavoidable mistakes entrepreneurs are doing and over and over. When I got failed, I did a detailed research and got to know that about three-quarters of venture-backed firms in the U.S. don’t return investors’ capital.
I found postmortems of startups outlining what didn’t work and Why most startups fail and how to avoid the same fate. While doing my research, I come across a case study of Mike Leigh. Here is my contribution to the cause: story of Mike Leigh. I hope it helps.
Story of Mike Leigh
Fail fast, fail early, fail often!” people chants.
But, let me tell you — failure hurts. If I would have failed fast, early and often then I would have given up my organization years ago. So, let me elaborate the case study of Mike Leigh. Just like other startups what went wrong with his organization and how successfully he avoids the same fate.
Here is the story of mike leigh. After successfully pursuing his career as a software programmer for the 7 years, he finally thought to have his own software development firm.
He did a lot research and a detailed planning. Mike firmly believed to make his organization a product base industry, rather than a service industry. As a software engineer Mike has worked with the clients around the world and he was very well aware with the problems service industry face, so he was preety sure to grow his organization as a product based industry.
So, based on his knowledge, experience and valuable suggestions he gathered 100% of funds for the investment to achieve the fruitful end result.
Mike simply categorized the investment into 3 different parts.
- 30% – for product development
- 60% – for the marketing purpose
- And 10 – for the infrastructure
Mike successfully inaugurated his own organization and started working towards developing his desirable product. As per his planning, he thought the development of the product would take only 30% of the investment, but here it was the first knock-back, the development phase took a very long time period then it was actually planned. This happens because during the development phase, Mike comes to know that our fast paced world demands more advanced technology. The 30% investment Mike had planned for the product development took almost 60% of the total investment. Double!!!! Still 10-15% of the more investment was required to for the final phase of the product development
There was no business scope to stretch beyond the limits in managing the existing project and obvious pitfall was Mike runs out of the more investment.
You might think, just like all the new startups Mike’s organization would have failed with the same fate, right!
Wait…. This is not an end, but a beginning, an opportunity…..
Bacancy Technology Came as the Saviour: Offshore Development Center
Now with the 30% of the remaining investment amount, the organization had yet to achieve desirable business plans along with different business needs as well as has to fulfill the demands of an existing system to manage the whole workflow to integrate and streamline core business processes.
Ensuring the scope of the smooth operations and project management with negligible downtime and disruption of services Mike approached Bacancy Technology and they set up an Offshore Development Center for the organization. Bacancy technology deployed a support team of software developers and technical support executives to work in co-ordination with the on site support team.
Bacancy Technology tailored my every specific need. They provided the resumes of the software programmers, as required by Mike. Under the Mike’s organization name and based on their actual payroll, they helped him to set up a dedicated team based on Mike’s approval. Along with the infrastructure and software engineers, the ODC model provides the highest levls of security and confidentially.
Very soon, Mike realized the benefits of an offshore development center in terms of cost savings, reduced risks and resource flexibility. As a start-up, it made more sense for Mike to outsource and pay for resources based on project requirements instead of hiring full-time internal staff and consultants.
And yes, with the remaining 30% of the total investment, Bacancy Technology helped Mike to achieve his business goals.
Here at Bacancy Technology, our Offshore Development Center (OTC) services is not only limited to the existing setups, but if you want our service from the first stage of your development then still we can help you for the long term engagement at lower cost and lower risk.
Our Offshore Development Center allows you to achieve your goals at a fraction of the market cost and still obtain the expertise and quality needed to set up a highly effective organization. By using our fully established infrastructure and resources, you can bring products and services to the market faster and more efficiently. Hire Offshore Development Center (OTC) services from Bacancy Technology, to change your organization’s fate just like Mike and to develop and nurture your company’s vision into a viable and successful business venture.