Top 5 reasons why startups fail in Bangladesh

A startup can be undoubtedly called the buzzword of the century. People have started to believe in the thought that building your own startup is their only possible way of becoming a billionaire. However, not all startups succeed like Facebook, Amazon, Snapchat etc. Here are the top 5 reasons why most deshi startups fail.

Not having a proper business model

Top 5 reasons why startups fail in Bangladesh

Having a well-analyzed business plan is the first and foremost thing a startup should have. The business model should include why they are building their startup, what is the product and how they are going to sell and reach to the people. The business model should have a proper revenue model and also how they are implementing the supply chain. 

At times founders assume that because they will build such an interesting web site, product, or service,  customers will beat a path to their door. That may happen with the first few customers, but after that, it rapidly becomes an expensive task to attract and win customers, and in many cases, the cost of acquiring the customer (CAC) is actually higher than the lifetime value of that customer (LTV).

Not understanding your customers

Top 5 reasons why startups fail in Bangladesh

Market research is a crucial thing in building a startup. As a founder, you might think, “I have an idea of a wonderful product, this should work.”

But in reality, not every product will suit everyone.

You have a great concept of starting a service that will allow car owners to rent their cars when they’re not being used. Sure, it may work wonders in the USA. But will it work in Bangladesh?

Without doing proper market research, you may never know whether people would actually pay for the product. It is a futile project to build a product that nobody wants.

Not marketing the product the right way

Top 5 reasons why startups fail in Bangladesh

Marketing your product is the only comprehensive way to make your products known to potential customers. You might have a great product, an amazing team behind it and a product that cater to the right customer group. But without a proper marketing channel, your product will fail to reach your customer. Hire the right marketing team or outsource it to the right agency. Hire consultants who can tell you the best way to market your product. Every little detail is crucial.

Not having a proper team

Many experts consider the startup team is the most crucial part of a startup. If the team members don’t have proper understanding amongst each other, they will not be work with each other for long.

Pathao had been successful because the team members had an amazing sense of understanding amongst each other, which dates over 10 years.

Not being able to adapt

Top 5 reasons why startups fail in Bangladesh

Eric Ries model of Lean Startup is very popular amongst startup founders, which states the importance of having a minimum viable product. But a core concept they miss is that building the minimum viable product is not everything, they need to adapt it with time.

You might have a great concept and you’re ready to jump ship. But in this mercurial market, if you don’t make necessary adaptations, your startup is bound to fail. 

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11 co-working spaces in Dhaka

Co-working spaces are now an option considered by many entrepreneurs and businesses. For many, it is a great way to cut costs and avoid the hassle of renting a full office. Buying furniture, decorating, hiring support staff can become expensive for a startup. Many startups just need a desk and some wifi for their operations; small teams need affordable spaces with a meeting room.

Some freelancers, designers or members of remote teams want to leave the isolation of home offices, but avoid the distraction of cafes. Shared offices also give the opportunity for many to network, to share resources and contacts. 

How to decide on a space?

Location: Take into account the reality of Dhaka traffic, and consider the location when picking a co-working space. Proximity to home can save you many productive hours wasted on the road. 

Cost: Cost is a huge factor, compare different packages before deciding. Packages include space for daily, weekly, hourly, monthly use. Most co-working spaces in Dhaka offer Wi-Fi, air-conditioning, emergency backup power, an in-house multimedia system, office equipment, and kitchen facilities. The spaces significantly vary in price which affects the quality of each of these facilities.  

Does your business need a place to meet for weekly meetings? Will a desk in an open office be sufficient, or do you need to make a lot of phone calls, so a more private room is a priority? 

Decide which features are important to you and are essential for your work–do you need a projector, a studio or a training area? Make sure you choose spaces accordingly. When you decide on a package that is best suited for you, make sure you understand what exactly is included in it.  

Work Environment: Another essential part of work-life is the environment. In your first visit, check for the behaviour of the staff and of others who will share the space. You want to decide on a place where you can work comfortably and effectively. If your budget allows, look for places that are spacious, clean and well lit for maximum ease and therefore, maximum productivity.

Co+Lab Dhaka, Baridhara

Moar, Banani 11 & Dhanmondi 27

  • Address 1: Ventura Iconia, Level 3, H. 37, Road 11, Block H Banani, Dhaka, Bangladesh, +880 1733 711 297,
  • Address 2: Moar Dhanmondi 27, MIDAS Center, Level 3 Holding 05, Road 16 (New, Dhaka 1209, Bangladesh)
  • Phone: +880 1714-116110
  • e-Mail: [email protected]
  • Website: http://www.moarbd.com

Bonik coworking, Badda

  • Address: Arma Majeda Malik Tower, House No# 215 (3rd floor), Merul Badda Bir Uttam Rafiqul Islam Ave, Dhaka -1212.
  • Phone: 01811480832
  • Email: [email protected]

Shuru Campus, Badda

Regus, Crystal Palace Gulshan and UTC Centre, Panthapath

  • Address 1: Crystal Palace, Gulshan 2, Dhaka
  • Address 2: UTC Centre, Panthapath, Dhaka
  • Phone: 09611886795
  • regus.com.bd

The Business Center, Gulshan 1

Locus BD, Banani 11

  • Address: Tower 52, Level 6, Road 11, Banani, Block C (8,672.10 mi) Dhaka, Bangladesh 1213
  • Phone: +880 1701-005480
  • Website: www.locusbd.com

Hubdhaka, Mirpur 11

  • Address: Building #7, Road #3, Section #7, Mirpur 11, Dhaka 1216 close to the Dhaka Zoo.
  • Website: http://www.hubdhaka.com/

Open Co-working, Bashundhara

  • Address: Advance Glory, 2nd Floor (South Side), Plot-15, Block-A, Bashundhara Main Road, Bashundhara R/Dhaka, Bangladesh 1229
  • +880 1716-873660
  • www.workatopen.com

JMC Shared Office, Banani 11

Toru Chayya, Banani 11

13 Co-Working Spaces in Dhaka 6

Toru Institute of Innovation has opened up their space for co-working.
Location: House-2 Road-4 Block-F, Banani 11 Dhaka, 1213
Contact [email protected] for more details!

Freelancers in Bangladesh will now get ID cards

Bangladesh Freelance Development Society (BFDS) and the ICT department took an initiative to create a database targeted towards the local freelancers. Under this initiative, ID cards will be provided to freelancers, bringing freelancing under an official working structure.

Read more: Kajkey.com: Making money from your laptop

This ID card validates a freelancer showing off his skills and achievements. They are calling this “The Free ID”. Other than showing off skills, it can also be used for banking.

“All this information will be fixed in the card with a QR code and only institutions that have an agreement with the BFDS can access it,”

Said Mustafizur Rahman, general secretary of BFDS.

Read more: 5 Bangladeshi platforms where you can pitch your startup

The card will contain the freelancer’s info, the earning statement, and his/her development in the career. According to data from BFDS, out of the six lakhs freelancers, only two lakhs earn actively.

Now, the ICT division of Bangladesh will be the ones providing the cards. While BFDS will provide tech support. Both parties signed an agreement regarding this. Other than that, BFDS signed a deal with Walton to allow the freelancers to buy Walton electronics at instalments.

Kajkey.com: Making money from your laptop

The issues are common: an event is coming up and there are so many details to manage or you just started a business with a great idea but need certain specialized skills to handle small technical tasks. Small business owners need one-off web-based content for a marketing campaign. Many entrepreneurs, organizers and companies do not have extensive teams of designers and developers.  Hiring freelancers can be the cheapest, quickest and high-quality solution to get the job done.

But how? Acquiring a suitable freelancer, usually on a time constraint becomes daunting. Even if you do find someone, their work ethic, efficiency and eventual product might not be up to par. 

The perspective from the other side of the table– freelancers may be very good at their job, highly skilled but can still find difficulty finding work. Most freelancers are not already established or reputed. Occasional “Hiring” posts on social media, and messages to acquaintances are not one’s best bet at finding work. Experience and skills do not equate to fulfilling tasks and realistic wages and commissions.

The core dilemma lies in this disconnect between employer and employee; the lack of a proper marketplace. 

The Kajkey marketplace

Sabbir Ahmed and Ahsan Ahmed, came together to develop KajKey.com, an online local freelance marketplace. KajKey is positioning itself as the one-stop solution for both freelancers and employers.

Graphic designers, webpage and app developers, digital marketers and freelancers of other expertise can sign up for free and build their profiles. Employers can post their projects and receive immediate responses from interested freelancers. It is as of now the most efficient way to link up between employer and freelancer in Bangladesh. One the link is established, freelancers are able to make additional income and refine their skills.

Currently, active freelancers are earning anywhere between 30,000 BDT and BDT 100,000 per month from working via Kajkey.com

Tested concept, made for Bangladesh

KajKey eliminates the noise between employers and employees, building a smooth and efficient bridge from project conception to realization. A significant leverage of the platform is in that it is entirely in Bangla. This was intended to remove the language barrier a lot of people face.

The Bangla targeted approach provides a necessary foundation to properly discuss needs and expectations. It also helps to operate on a localized context and conduct transactions with local payment solutions.  Therefore, the platform has gained traction, with more than 50,000 users registered on the platform and availing opportunities on a regular basis.

Jobs, jobs, jobs

KajKey also offers a very simplified and efficient method of job finding and posting. Freelancers need to build their accounts and update it with details of their experience and portfolios of previous projects. Employers need only to post their projects with the title, budget, goals and related details. Freelancers will then bid on the project.  The process leads to a direct discussion between employee and employer regarding a project, providing for a satisfactory solution for both parties. 

More income generating features for freelancers

Kajkey.com also just launched their new platform KajKey V2 where freelancers can offer their services as a gig with their own price. Instead of solely applying for employers requests, freelancers can post a gig with a description of offered services, show examples of previous work, evidence of projects completed (total sales number) and of course, the cost of services. If interested users see something they require, they can order services on the gig pages instead of making a post requesting the service. 

Bright prospects

KajKey is swiftly becoming the go-to marketplace for freelancers and event managers. It has been endorsed by many prominent entrepreneurs and investors including– Hussain M Elius from Pathao, Kishwar Hashemee, CEO of Kludio, Ravid Chowdhury from Trucklagbe and RC Ventures, Rayid Isaam Faruq from B2M Games– among other prominent figures have endorsed and welcomed the platform. 

KajKey has eliminated a lot of the problems involved with employing freelancers and folks are recognizing the potential in the venture. It has provided employment opportunities to interested and able individuals and also contributes to decentralizing employment opportunities to remote places outside Dhaka. It is a project with massive potential that if realized, could permanently change how employment in these situations works.

If you find yourself organizing an event or web development project, try out KajKey and your job might just be made easier. Let us know about the experience!