These days when opportunities are galore in the global market, lot of technology enthusiasts do often consider running their own IT Services organization. More often than not these people are very ambitious and have done remarkably well in their IT careers. Somehow there is a lack of strategy and proper business plan and statistics suggests that eight out of ten such startups are not able to sustain or attain planned growth rate. Also setting up an entity, getting the business and managing operations and deliveries is not a cakewalk. The known pitfalls are as follows:
- Inability to reach businesses which might be interested in utilizing their services
- Inability to provide a clear cut message about their business offerings
- Focusing on too many areas at the same time
- Little knowledge of sales cycle
- Giving least importance to sales
- Insufficient cash flow
- Trying to make themselves billable in order to save money
The list could grow without having an end to it, however I have summarized only 7 most important and critical mistakes young entrepreneurs make.
Now some of these pitfalls could be easily avoided by doing some homework around following points:
- Choose the right partners
- Know your strong areas
- Analyze the market opportunity size for your skill sets
- Analyze who your competitors are and learn a little about their strategies
- Identify who might be interested in giving you business
- Pitching in to prospects
- Sales Cycle
In my next blogs I will be elaborating on each and every points. Look forward to your comments and suggestions to make this place worthy of providing some valuable inputs to the budding entrepreneurs.
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