Why do startups fail?

Startups is not about only getting right founders, right mentors and right incubators to scale up, but it is more about a research on arriving at a business model for an idea. The business model needs to be a paying one or impactful.

We find multiple startups imitating and the clones too get successful somewhere only because the investors prefer investing in safe bets.

No one risks an innovation till it is proven. This leads to innovation moved back to government funded initiatives or individuals who are seriously committed to innovations and give grants.

Almost startups globally fail as any thing in excess becomes a waste. How many startups can we have in mobility space or e-commerce or wallet or anything for matter. The unique differentiator is missing

What should be an ideal cost of experimentation?

Create a market base through need and subsequently just have 1 feature MVP (Minimum viable product feature) and push it in market.. If it succeeds, you add more modules.

Startups fail because of too much focus on either technology or marketing and the right balance is missed out.. Apart from that for strange reasons mentors/advisors are paid /not paid at all.. or even in board, may get may be 0.5% etc, so it is not a lucrative proposition for them.. So next time another startup gets into a graveyard, it is not because an entrepreneur failed, it is because the market validation was inadequate and the competency skills to scale it up needed more attention.

 

 

Issues for nothing

Startups have issues for nothing

Samuel ‘no money.. no further goals’

Martin the VC firm staff ‘so fully dependent on investors… why so’

Samuel ‘we believe we did our part.. a nice product.. but accelerator never helped us get clients’

Martin ‘ridiculous.. do not set such expectations’

Samuel ‘they promised it’

Martin ‘they promised good network, reach, partners’

Samuel ‘still want to exit.. can you help me sell it off’

Martin ‘great.. we do everything for you.. and you call yourself entrepreneur’

Samuel ‘sorry.. but you are just creating issue for nothing.. am just asking you our normal expectations..  you invest and ask us our exit route.. hence want to inform you.. most of entrepreneurs do say they will exit.. but really rely on venture capitalists and P/E firms only for exit.. so it is upto you’

10 days latter

Martin ‘Boy… am exiting the VC firm.. am starting my own venture.. best of lucks.. got tired to be a sandwich between entrepreneur and investors’

 

USA vs Indian Startups

Think anything crazy and you are sure to get invested in US if you pitch well…

Think anything which already exists but not yet introduced in India, you are sure to get invested in India

As we crib of  lack of innovations in India, does it really matter and does it really have investors seeking to invest in millions?

When I researched and kept researching the art and science of entrepreneurship ecosystem in US, Europe, Africa, Australia, Middle East, Netherland, Russia, Mexico and many other countries realized that PROBING means different to different individuals who wish to be entrepreneurs

Few years back, the ones who initiated business in India copied a successful replicable not yet done model in India and Investors too didn’t mind investing in such ventures..

Same side, there were dozens of innovation holding dust in college libraries or in some houses but with no takers and most importantly because of design aesthetics no one wished to invest..

Many design schools too got opened, but creativity again needed PROBING.. international probing of what is needed to succeed so INNOVATION again needed PROBING..

Slowly and surely multiple incubators /accelerators mushroomed in India too but lack of mentors or even still the expectations of entrepreneurs shot up..

None wish to think below Rs20lacs or Rs30lacs and now there is a catch 2 situation.. Should these entrepreneurs be funded or kept informed to search jobs and learn more and then become entrepreneurs?

The number of Series A funds have dipped drastically.. So what happens to the 1000 or 10000 startups out to win the global market?

Does currency matter a lot? Absolute yes.. and conditioning mind from being service centric to product centric is more vital for developing (near developed) country like India.

 

Why do best of geeks perform from India perform well in US and get bogged by pressures during work in India?

It is because of consulting mindset, a thought to work on hourly basis.. and even if product investments happen, unless the best from best of institutes not as founder member, it is a risk..

As i experiment with individuals from all walks of society, the biggest challenge is motivating all to think / attempt to become entrepreneur and will they get investments? Not sure..  but what they may get is a market reach and traction to sustain themselves..

Finally what is so special about US startups?

Innovation.. and ability to identify right pain points.

Is there a clutter of no show investments in US too?

Obviously yes.. as to how many investors would wish to invest in already cluttered market and purely focus only on IT/ECOMMERCE based solutions..

There are surely many investors in India who also wish to invest in innovations in India but again a fear of non show in Series A may be detrimental for creativity, innovations in India.

My focus on accelerator program is guiding the individuals to make strong technical scalable product or service.

Smart Startups

Smart Startups are the ones who abide by following rules

1) Keep focusing on their goals and do not rush push to seek investments.

2) Keep identifying right senior talents and negotiate / convince them to be with the startup in thick and thin and offer a generous equity or even compensation or if nothing else have a human empathy to build relation with them.

3) There will be a need to continuously collaborate, build relation with other startups and see where your venture product or service fits in that eco system.

4) Build small community and collaborate and bring more individuals to believe in what you are doing.

5) Keep building customers.. and more customers or fans and more fan following.. or followers and more followers..

6) Avoid getting into controversies and stick to their focus.. so no loose comments on twitter, facebook or any social media site..

7) Get the cheapest, greatest small module training from reputed institute and build relation there..   if that too is unaffordable..  identify quick learners and include them in your team..

8) Having a human binding with your employees or contractors or consultants is most important and at the end of it, are they going to earn good remuneration from your startup?  If the answer is No and if you feel you are the most conservative successful entity who does not wish to spend on employees then you are not there… you can never be able to build a foundation company.. you may wish to sell your startup to someone else..? but it is of no use as finally again you are in that cycle of entrepreneur to investor journey and you will not be the right fit to create large employment opportunities.. so vision focus most important.

9) If your aim is to just sell your startup eventually.. identify all potential acquirers and understand where all they have limitations and strategize fully on that model only..  finally be clear of what you wish to do..

10) Does incubator / accelerator deserve small equity for guiding you.. absolutely yes as finally they have built a strong network of entire startup eco system..

11) How much minimum money you need? depends entire on the startup? It should not be a case of a business plan by an employee being given to a CEO for budget approval and startup will perform only if business plan gets sanctioned..

so please do not chase investors and let investors chase you..

PASSION FRAMEWORK the one which have built and evolved is a 2 decade journey of ups and downs in an entrepreneur journey and name it.. everything is experienced…  and so do not get bogged down by ‘No replies from investor’s”or ”Polite smiles” or “Harsh criticism ” or “Even copy / imitations of your product” as finally if you have decided to become an entrepreneur.. it is your special charm.. there is something in you which compels you do so.. so you are bound to win…  if you have patience and perseverance.

Sold and Realized am a fool

Sam is a project manager who feels everything can be outsourced..
He builds a product with outsourced team..
One day one of vendor calls up Sam

Raj ám in deep shit.. will have to close my unit’

Sam ‘relax.. what is your overhead’

Raj ‘100000 per month’

Sam ‘fine.. I will make payment in time’

Raj ‘other customer will not.. have to exit’

Sam ‘ok .. I am ready to take over your company for 300000’

Raj ‘ok..am willing’

6 months later

Sam ‘Raj.. that venture is now having revenue of 1000000’

Raj is sad

Sam ‘you were desperate.. you never seeked solution.. never bargained and..’

Raj ‘it is past.. have again started a venture..’

Sam ‘what is your product’

Raj ‘compliment to your product’

Sam ‘who invested in it..’

Raj ‘Angel Investor George… 1000000’

Sam ‘wow… I can give you business.. but need to be one of co founder.. 20% equity for 500000 business’

Raj pauses

Raj ‘done.. we will work together’

After 6 months

Raj ‘want to sell company.. got 5M$ deal’

Sam ‘sure.. you can do it’

After 3 months

Raj ‘I got 5M$.. am now free bird.. will start an accelerator’

Sam smiles..

Sam ‘that company which acquired is also mine… I have got a business worth 10M$ for it’

Raj is sad

Sam ‘Raj.. why are you in hurry to sell everything so soon.. don’t you ever wish to build foundation.. a corporate with 100000 staff’

Raj realizes his mistake..

Raj ‘Sir.. can you cofound something with me’

Sam ‘you be a good employee first.. be CEO of both ventures which you sold to me.. and only when you build patience.. become an entrepreneur’

Amit

Amit is a winner all the way and always been a topper in his school and college.. and unfortunately for him, one day he looses both his legs in an accident.. and his one hand too damaged…

Amit ‘Doctor… never knew life could turn this way.. Am in best of hospital in Chicago.. my parents have put me in best of schools.. and now in US.. met with this fate’

Doctor ‘cheer up.. take life as it comes.. crippling is limiting.. but understand that god gave you the power to think and act’

Amit is silent..

Amit is reading a news paper..

His mom Swati and father Bob is besides him…

Amit ‘Mom.. both of you are so supportive.. but I have been always too ambitious.. so.. am thinking next what’

Bob ‘Son.. we are there to support you”

Amit ‘I want to have list of all handicapped individuals in world..’

Bob ‘done.. we can get that.. there are multiple associations’

Bob ‘why?’

Amit ‘Why not start an incubator program for handicaps… we invest in their brain to think’

Bob ‘you are brave.. others loose their self esteem so .. not sure’

Amit ‘am sure.. they can talk… so let us have them become story narrators.. and we tie each with different sector’

Bob ‘not a bad idea’

Amit ‘Amit means non perishable.. and I guess.. our voice will be heard.. as content, stories, technical training contents and so on’

Bob hugs Amit

Swati ‘enough now.. take rest’

Amit ‘god at times challenges us.. let us accept them gracefully and do what we feel will be in best interest of self and society.. Never leave hope’

Bob ‘Am amazed by your optimism’

Amit ‘if readers here feel they are a bit low.. cheer up, Amit requests all to be part of PASSIONIT movement.. PASSION is all about pain and endurance to give a product.. be it baby 🙂 or be it startup 🙂 or be it Love:) or be it Accident too :)’

PCombinator – Stored Values

Stored Values can be assigned to any variable provided you have the capacity to store values.

Fundamental truth of life is to store all your values in an array…

example A startup can store following values

PROBING (Entrepreneur, Investor, Incubator, Accelerator, Mentor, Adviser, Technology, Competitors, Suppliers, Potential Employees, Leaders, Subject Matter expert)

INNOVATING (Technology, Process, Mindset)

Acting (Probing, Innovating)

Scoping (Acting)

Setting (Scoping)

Owning (Setting)

Nurturing (Owning)

Look at the beauty of PASSION for understanding how combinators work..
Company originating of Mathematical Formulae could be a nice concept..
but the true meaning of those hidden formulae lie in understanding the maths of combinators, PCOMBINATOR for you

Nurturing (Owning (Setting (Scoping (Acting (Probing (), Innovating ()))))

So if you wish to initiate a startup, first probe and then innovate and surely act on them.. Scope them, Set them, Own and Nurture them dear

Enjoy with PASSION