The cloud burst began and huge showers of small to large investments made on startups. Over a period of time, technically no one can be jobless as some or the designations get attached to an individual. It is an extremely positive sign..
What happens to the employees who work in startups or companies which scaled up fast but over a period of time tend to become slow growing?
Even if any government would shower schemes for n number of startups.. and on a logic that 90% may have flawed business models.. it means if 1000 startups initiate business.. 900 will fail.. which means it will create unemployment for 900 x (minimum 3-5 resources) = 4500 jobless…
and 100 will get successful and with each startup having at least 100 employees.. it means 10000 jobs created.
(So it means.. opportunities will exist for the ones who are jobless so there is no need for much of worry or tension unless a resource is absolutely unskilled and not fit for a job)
A take away for a failed entrepreneur?
A person who has learnt, gained experiences from their initiative and may be pass on the don’t do legacy to others.. Second time onwards it is important the failed entrepreneur takes professional help and builds a strong team to get going. So next time the failed entrepreneur could succeed too.
A huge cover story Stranded emerged which clearly conveys that though the stakeholders got into nurturing eco system, it gets lost in the glamor world of conferences, meetup’s, network and so on.. Eventually when it comes to hard core business deals, it is the straight way approach of a proven product, market tested and with strong merit, that can succeed. Fine tuning a business model is of utmost important and though demo days important, building
Any company needs minimum 5 resources.. HR, Technical , Marketing, Logistic/Operations and Finance personnel to make a strong foundation.. Am not including the website / SEO / branding resource too.
Now to achieve that.. it needs a minimum provision of 7-10 resource salary for a year.. Now what happens after a year.. if business fails.. these 10 will get jobless and move on the next job..
There is a simple trick to not overspend / exhaust money too soon. If a startup gets funded. ensure the funds last for more months..
The ones who are in job need to prepare themselves for cloud bursts of jobless ness and acquaint self with latest technology / management insights.. Not assume that everything will go well and contribute to growth of the company.
Have observed many employees getting carried away with the infrastructure of the company where they work.. Being in startup if we tend to compare the infrastructure with someone who is working in large MNC is like trying to get best of 5 star luxury in a road side joint.. Please enjoy the road side joint and its food and grow the venture to ensure all enjoy the 5 star luxury after few years.
Entrepreneurs too should learn to value their employees and realize the ones who have contributed to their growth will remain with them in lean period too provided a sense of ownership, equity provided to the staff right at outset.. so if a bunch of employees, mentor, advisors really help you grow, please have them feel happy by sharing your profits. Entrepreneurs need to create a sense-of-belonging culture.. All should go well even if failures exist…
Celebrating failures or success is fine, but eventually as a take away it is not the million / billion $ valuation which helps any individual or firm or country but what contribution moves back to society as disruptive innovation whether it is in technical or management process format.
Finally for every money blown, it is an important pre-requisite for entrepreneurs to understand that money does not come easily and all are answerable somewhere or the other to someone in chain of eco-system
Solving problem and identifying solutions are more important in such cloud bursts.. These are the period when people unite selves naturally to help each other. and that is possible only if sense-of-belonging is nurtured right from day one and instilled by entrepreneur in employee mind/ thought /way-of-work process and may be some insurance schemes for job less ones too emerge. though needs to be handled with care.