India has emerged to having the largest start-up ecosystem in the world. The future of start-ups in India is looking to be quite promising. Our country has the largest pool of young talents with a supportive government creating various initiatives for the start-ups. However, there have been reported cases of failure as well in the start-up ecosystem. Few of the start-ups which failed or could not meet the expectations were Dazo a food-based tech start – up in Bangalore which failed due to fierce competition and lack of funding, Mishra Motors which started on a promising note but failed due to lack of funding, Adleaf Technologies due to mismanagement. If we must summarize the reasons of the failure, it would be   lack of funding, mismanagement, lack of exposure / experience, competition or lack of system driven approach.

Our article today focuses on one of the aspects of failure – System driven approach/mis-management. It is important for the founders to understand that running an organization requires building a team and the need to delegate for scaling further heights. Most of the founders are generally caught up in solving operational issues after a specific time and eventually loose their focus on the growth.

A system driven approach has a direct impact on the financial growth of a start-up. A system driven approach helps to make an informed decision based on accurate and authentic data, it helps to increase the efficiency and reduce the operational cost drastically resulting in effective cash flow management, financial planning, and thus overall profitability of the concern. A start-up with having a system driven approach are better positioned to identify the growth opportunities, as they are equipped with clear understanding of the existing position of their financial performance and can adjust their strategies accordingly and respond to the market demands.