What comes to your mind when you think of startups? Well, it sounds very simple and easy to execute but it is nothing like that. Launching a startup of your own requires lots of hardship to flourish the business in the long term. Additionally, it also requires a proper floor plan, management plan and funds to execute it properly.

If you would lack in any of these parameters it can fail miserably leading you to losses. Have a look at some of these startups which have failed due to these mistakes only. I am sure that you can learn many good lessons from the mistakes committed by them.

Scroll down to know about them more.

1. Just Buy Live

via: Yo!Success

Just Buy Live was a startup whose aim was to connect all the retailers directly to different brands across multiple categories like fashion, stationary, smartphones, auto, personal care, food and drinks etc.

The startup was also offering unsecured loans to small business owners to facilitate the transaction on its portal and provide funds to small retailers. The startup has managed to raise $100 million series B funding from a Dubai-based investment firm, Ali Cloud Investments.

Why did it fail?

This startup has failed miserably failed due to no proper planning of scalable business model and negative cash flow. As per the latest report, the startup’s co-founder has said that the company has temporarily been shut down for some time and it would soon resume its operation after rising fresh funding.

2. Shotang

via: ET Telecom

The startup, Shotang was a business-to-business (B2B) online marketplace that was launched to connect retailers, distributors and various manufacturers to carry their business online using their platform. It used to earn revenues based on commissions paid by distributors per transaction.

Why did it fail?

Although the startup has raises a series of funding from different investors like Patamar Capital in February 2019 (INR 6.8 Crores) Exfinity Venture Partners in December 2015 (INR 36 crores). It is believed that the startup has risen the funding to pay off its creditors, employees and partners.

3. PortDesk

via: VCCircle

The startup, PortDesk was aimed at providing e-procurement solution for logistics management related operations like accounting, cash management, ports DA estimate and voyage, layout and contract management.

Why did it fail?

The startup has shut down its business in June 2018 but the exact reason for its failure is still not revealed. The company has raised $2 million (INR 13.98 Cr) in a seed funding round from a Singapore-based maritime services company, Alphard Maritime Group.

4. Zebpay India

via: Zebpay

Undoubtedly, the company was India’s largest crypto exchange that enabled users to buy and sell Bitcoins and other cryptocurrencies like Litecoin, Ripple etc.

Why did it fail?

Zebpay has decided to shut down its operation completely soon after the official announcement by RBI in April 2018, which has restricted banks and payment companies to extend any services to crypto exchanges and wallets. The company closed its operations on 28 September 2018 by saying that they are unable to chalk out any other way to carry out the business at this point of time.

5. Tazzo

via: Red Newswire

It was really an interesting bike rental startup that has helped millions of people to commute to their offices at only Rs. 5 per km. Its mobile app was integrated using GPS tracking technology which was used to do live tracking of the movement of the vehicle.

Why did it fail?

The company has shut down its operations because it was not able to generate positive cash flows out of its business.

You must have heard that startups fail but do you know Why? Because of one or more reasons like lack of adequate funds, quality resources and infrastructure and so many things which one requires for running a startup successfully. But not every startup fail and the reason behind this is the constant effort and hard work they put in to achieve the desired results.

There are a number of startups which have been failed badly but there are also some of the startups which have proved us that nothing is impossible in this world if we are willing to take the pain and do the hard work. In this article, we have listed

Some of the startups which failed miserably but after now everyone knows about them as now they have gained quite a popularity among the masses.

1. Uber

via: Archid

We can’t imagine our life without using Ola and Uber nowadays. The car rental startup, Uber has been started by one school dropout who got very good funding to carry out his project. He started the company in the year, 2010 which has a value of nearly $17 billion as of now.

2. Instagram

via: Inc

One of the most famous photos sharing app, Instagram has been launched by a person who wanted to learn how to code so he decided himself to learn to code after his working hours. Post-learning about coding, he has successfully created an app about which everyone is talking today.

3. OYO Rooms

via: Yatra

The very young and talented Ritesh Agarwal who is also a college dropout has made this idea a successful launch at the age of 17 only. Do you know OYO was earlier known as ‘Oravel’? The concept was fairly unique and accepted by especially young couples, married or unmarried. As of now, the company values over $25 billion.

4. Alibaba

via: Mashable

He is the man of words, from whom we can learn so much. He is truly like an inspiration for so many peoples as he knows the real struggle behind finding a job for himself as he faced many rejections in his life for every possible job which he tried.

And you know, he hardly knows how to speak English. Facing so many failures, he decided to start his very own startup, Alibaba which is a giant Chinese e-commerce player and everyone knows about it.

5. LinkedIn

via: Glassdoor

One of the most important startups of the millennium I guess which helps people to find jobs and make contact with professionals over social media. Initially, when the app was set to launch in the year 2013, the founder asked some of his friends to join the website.

After some time, it gets a positive response from a huge number of people and today it has a worth of over $1 billion.

6. Tripoto

via: Tripoto

This startup was started up by two friends together who were avid travellers. They have started the company in the year 2013. The company has also received a huge amount of funding of nearly Rs. 2 crores within a year.

7. Pinterest

via: Officelovin

To start this venture, a guy has left his job to work along with his two friends. Initially, the app got flopped badly. So, they again tried to re-launch the app in the year 2010 which now has over 25 million active users worldwide.

According to the report in 2018, there are more than 206 million people who spend their money on online shopping this year, if you think about starting an eCommerce Store, time is not gone. To start an e-Commerce Store and to sell the product online, you should check out the list to do before start Store.

1. Start with Decide your Store name

After deciding what you want to sale, you have to select the memorable, fabulous store name that no one is using. You have to search then choose the corporate name. After the name has been chosen, you can register your store as Private Limited Company Registration, LLP, etc. You have to follow the legal process.

2. Protect Your Website and Domain Name

After deciding your store name then you have to decide your domain name, if the domain name is not available, select the URL which is easy to pronounce and related to the Store.

For example, if your store is related to craft creation and store name is Taruna craft creation then Domain will be Tarunacraftcreation.com. If it is not available you can select a similar domain like craftcreationtaruna.com. Selecting a unique domain name is one of the expensive things in eCommerce.

3. Decide the Type of Business Structure and Register your Store

There are varieties of registering options like-

1. A) Partnership
2. B) Sole Proprietor
3. C) Corporate
4. D) LLP

If you will not select the business structure like LLC and corporate then you will automatically consider as a Sole proprietor by Government. Operating as a sole proprietor, your personal assets at your personal risk and if the company is ever sued then the court can collect your assets.

Both LLC and corporation separate you, provide other benefits, and your assets from the business. If both corporation and LLC Separate you and your assets from the business and provide other tax benefits.

4. Apply for Permits and Business Licenses

Operating an eCommerce Store cannot be implemented with some Licenses and permits. It differs from state to state and country to country check sorts of home business licenses and sales tax licenses you need and get approved before start store. According to your store, you have to take permit from the Fire department or any other as per applicable rules and regulations.

5. Search the Right Vendors

In this competitive era you will find lots of competitors selling products online, so according to your interest find out the best quality and best prices for your products you sell or materials you use to create your product. Find the vendor that you want to do business for a long time.

6. Get more familiar with Right Software

We can work with the help of technology as it is more easy and as well as save the time and efforts. So, before starting an eCommerce business, play around with accounting, customer relationship management, project management, email marketing, and other software which helpful for your eCommerce store. Once you launch, then you can integrate into what you are doing.

  7. Stock Your Inventory

Whether you have lots of products in your warehouse somewhere or you store your inventory in your garage be sure you have got enough at a day of launch. It will difficult to decide how much it requires. To have many inventories is not enough. Focus on how you can increase your sale. You can focus on future and smart orders.

8. Your Employer Identification Number

For open a business bank account and file your business tax every year will need an Employer Identification Number (EIN). ENI is a Business social security number, and it is a unique number which helps you file important paperwork and identifies your business. Every business requires whether you will have employees or not.

Conclusion

I hope this article is valuable to you. By this article, you can understand how you can start your eCommerce store like Store name, Registration, Inventories, EIN, and Software.

Afleo is a leading website which helps startups to commence their business by legal advice and service provider like GST registration, PVT LTD registration, one person company or for the information you can visit our website Afleo.com or contact us.