Posted on : 2023-06-25 20:11:32
Article : Good morning, Monday our management solution for the TASK 247-Failure is difficult to handle, but there is no better teacher. Although every business listed failed, spectacularly all of their founders got back up, dusted themselves off, and forged ahead to eventual success.
Why does most of the startups fail is, because of lack of funds and poor financial planning, highly anticipated model which is not in sync with the nature and life style of the targeted customer, poor customer service and subquality of the products, lack of focus and legal disputes. Now how to bounce back to the business? Find different sources of income to recover your loss, prepare and plan with the consciousness, wait for the right time to get the right opportunities, don’t give up but plan for your next venture. Look at the certain start ups stories that have failed and those have bounced back into business.
Yumist was Founded by Alok Jain and Abhimanyu Maheshwari in 2014, Yumist sought to establish a network of homemade food for people who wished to experience the same. The Gurugram based startup aimed to serve home cooked meals via Zomato and Swiggy at rates starting from INR 100. The food tech start up aimed to make it big in the food tech industry, combining the goodness of homemade food with the ease of having it delivered to one's doorstep. Their vision of steady expansion and serving the working sector seemed achievable initially but ended up choking them to the very core. As Promising as it sounds, there are certain practicalities which are involved in every theoretically perfect plan. In this case, funds eventually turned to be the determining factor.
The food tech idea drew a handsome number of investors and was more or less a hit amongst them. The next step was to implement the right techniques to take the idea forward. Yumist did well to partner with Zomato and Swiggy for delivering pocket friendly homely meals. They had even carved a niche for themselves in certain regions but that was far from a permanent spot in the market. It would've taken them more than just consistency to achieve that. The important factor behind Yumist's downfall was poor timing and an eventual cash crunch. The food tech start-up misjudged certain aspects and couldn't fortify its position in the industry, eventually leading to the shutdown of the company. Yumist's expansion wasn't as widespread as the company would've hoped for and the startup was active in just a few regions.
In May 2016, operations in Bengaluru were shut down due to the absence of a kitchen in the city. This was followed by the inauguration of a 12000sq ft. kitchen for Delhi NCR. Yumist was still recovering from the losses incurred due to the shutdown of operations in Bengaluru. This came as a major setback for Yumist's profits. The major reason they gave for this shut down was the absence of a dedicated facility for food preparation. Since the operational charges were racking up and the profits weren't, the company had to close all operations in 2017.
The major reason for the startup being shut down in 2017 was lack of funds. Investors who had entrusted the startup with its promising vision could see it lacking steam. The startup had generated funds but not enough to sustain its operations. The founders were positive that the condition of the startup would eventually improve and by June 2018, they would've become a profitable company. The fact that they were incurring more losses, not even enough to sustain operations made this belief look more unrealistic with each passing day. The final blow came in 2017 when Yumist had to finally close all operations and give up on the vision they had started off with.
Though there ain't much, one can do to avoid certain situations we can obviously learn to consider certain aspects while kickstarting a startup. The basic learnings from Yumist Case Study can be – considering, the target sector, funding and budget before taking decisions for a company. If Yumist was to have a more insightful approach to these, the outcomes would have varied to what they eventually were.
Now let us read the startups which were suffered setbacks, went up to closures but bounced back to business with more vitality.
Like several other business on this list, Starbucks struggled during the 2008 financial meltdown. Unlike some companies, it didn’t require government intervention to right the ship. But things were so dire in 2008 that former CEO Howard Schultz returned to the company to set things straight. The company had grown too fast, and was stumbling under its own weight. Once he returned to the helm, Schultz quickly set about changing things, inviting people to email him with suggestions for improving the stores, briefly closing all locations for retraining, rethinking the company’s advertising campaign, and getting serious about social media, among other changes. Though the chain did close several hundred under-performing locations in 2009, it emerged from the rough patch stronger than ever.
Similarly, Lego has earned high praise for its toys, which encourage creative play for kids, but a little over 10 years ago, the Danish company’s foundation was shaky. It was unwittingly selling some products for less than they cost to manufacture, while new toy sets failed to impress fans young and old. So, the company streamlined operations and set about recruiting designers who loved the product. The new approach worked. New sets proved popular (especially those tied to hit franchises like Harry Potter), and a blockbuster movie also helped the brand. Now, two years after became the world’s largest toy company, Lego is so successful it’s now struggling to keep up with demand.
End point-Failure is difficult to handle, but there is no better teacher. Although every business listed failed spectacularly, all of their founders got back up, dusted themselves off, and forged ahead to eventual success. While it’s easy to see all the mistakes you made in hindsight don’t let yourself get to that point. Failure can be seen a mile away if you’re paying close enough attention, even if it means asking yourself some uncomfortable questions. A lot of businesses could have been saved if just the smallest amount of preparation was undertaken, or if founders had just a little bit more patience.
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