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.

 

 

Startup Wisdom

Startup with founder is headless

Startup with team is legless

What we need is a founder who is convinced on the venture and team and we need a team who is convinced with the startup

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Rai asks a million dollar question after wards..

“I do not have a team but am also a startup.. I have 1 person working with me’

Sam who is addressing the conference smiles and responds

‘Startup needs to scale.. only what can be scaled up can quality to get invested’

Rai ‘Am making a US$100000 profit in my venture’

Sam ‘Dear you are successful freelancer or consultant. I suggest you to be accredited angel investor’

 

 

Good bye Startup

Mary is an ace angel investor but she is worried with the growing trends of failures.. Startup failures..

Mary ‘invested in multiple companies but still no result’

Joy who is an ace Incubation Expert looks at Mary and poker face asks a question

Joy ‘Mary.. we are meeting in so many meets. I am invited as a jury and you too invariably exist… but observe you follow a trend.. if an Ace investor, invests.. you imitate that…ánd follow up.. and the first investor.. also invests because the startup has some reputed brand advisors or CEO or from reputed colleges’

Mary is shocked at this straight answer

Mary ‘you could be right.. and wrong…’

Joy ‘building a framework for incubator and accelerator.. not an easy job .. mind well.. as many investors feel it is just another incubator…  but am building a support system for entrepreneurs.. a genuine one.. and each startup within it has a purpose.. a mission..’

Mary ‘who wishes to invest in incubator itself… you ought to be kidding…’

Joy ‘yes..all remain silent.. I got surprised that skill based learning also has a mandate.. resource needs to get placed… and then… rush push.. half baked resources presented to companies as funds are paid by government back to such agencies’

Mary ‘out of context dear’

Joy ‘Mary.. have patience and be a good advisor to your ventures.. rest will follow .. and in case you do not have that domain experience.. educate ..and learn.. and only then invest’

Mary ‘you are brutal.. am surprised.. you do not fear investor community and they may just boycott you’

Joy ‘if you are good.. you are.. people will come to me.. if am needed.. I am flexible.. I will support all incubation/ accelerator process and hopefully one day some investor realizes that to build startup eco system.. first you need patience and second you need perseverance and third you need people.. and then products.. proper placements and right pricing… and all this through structured training and good marketing linkages..

Mary and Joy are called to the jury panel…

Joy ‘wow.. talking.. so much. sorry to trouble you.. let us know blah blah in front of audience..

Mary is shocked and both are now on stage

Joy ‘good bye startup.. a theme for investors to probe’

All entrepreneurs silent.. and session head also surprised

Mary ‘dear participants.. the investor community is loosing confidence.. I do agree we make mistakes.. a venture is a project and none of entrepreneurs know project management in initial stages if they are just out of college.. sans experiences nothing can happen.. sans market test nothing can happen… hope all here understand that too much is put on startups..  I am confused.. this guy says invest in my incubator/accelerator initiative.. but I just cannot muster courage.. Am panicked.. I sold a business and got into angel group and put in 70% of my funds.. last I would wish to be is become entrepreneur again’

Joy claps his hands…

All clap their hands..

Joy ‘applause to all.. and a lesson to all..  the ones who bootstrap most are truly passionate about their venture and so dear friends.. make at least 10 sales of your product or service and then attempt running behind investors or social capital community..  else.. good bye startup.. all will again get back to industry and companies and ones who are investors will get back to trading and stock exchanges and whole philosophy of startups will collapse’

Mary ‘who gave you this encouragement Joy?’

Joy ‘PASSION is not about ethos and pains.. it is about reconstructing your life for solving a problem.. a problem to succeed and keep growing..

Connecting Dots

If I were to think of competition with the world’s most accelerated innovative manufacturing hub the challenges I as a country would wish to acknowledge is

a) Are we happy consumers or happy innovators?

b) Are we quality conscious consumers or risk conscious investors?

c) Are we good imitators or good spectators?

What are the typical actors in an eco system?

  • Policy makers
  • Thought Leaders
  • Manufacturers
  • Process Enabler
  • Academicians
  • Knowledge Managers
  • Researchers
  • Investors

and above all Entrepreneurs…  who need to probe, innovate, act, scope and set the basic premise to build an eco system. PASSION is all about probing, innovating, acting, scoping, setting, owning and nurturing a baby..  The eco system is also a baby.. In Nascent Stage.. and soon we found a mushroom of Angel Investors, Incubators, Accelerators all trying to build entrepreneurs, scale business but where as a country, we are with reference to technology innovation?

Is it government which needs to collaborate with successful business houses or is it the entrepreneur who needs to find way to collaborate with business houses and government?

A challenge which comes in ‘Sir.. we have built technology.. but we need to test.. We need to test in multiple brands.. Who will give us the opportunity to test and experiment technology in components and things used for common man or appliances used by common man or by transports used by common man or humans

Pat comes an answer from Manufacturer’s ‘Dear.. our innovation lab is already doing it..  why don’t you join us as an employee.. and we can pay you best in industry’

Poor entrepreneur in me.. feels am making the best product.. and begin running to competitions and workshops in hope to get connected.. trying to connect dots and what am left with is some contact cards and hope that my venture would get invested

If Policies need to be defined.. why then focus on more tilt of investment to a particular sect or location or whatsoever in world of internet of things..

If you are the thing and some other reader is a thing, what better thing I can be other then an Internet..

Trust is two way process between various elements and to build trust, I need to perform, rejuvenate and motivate self that I will be doing better and much better then others.. A sense of competitive spirit..

but what is needed is also blessings of one’s who set forums to create the eco system.

If a country chases e-commerce and e-business when will the real commerce and business grow as real growth will always be in innovating, inventing, manufacturing products and services will come only after products are built?

If a country focuses on manufacturing, innovation and closely guards it’s methodology, it is only to protect its National Interest to build a much larger impact in global universe

and if a country focuses on service, being work leaders, happy to be in hourly rates as consultants, heads and directors, it is only because of fact that we are taught to focus on real estate, assets and accumulation of assets with lesser regards to contribute to society and give away what we accumulated..

and if a country who develops and keeps developing and growing and embraces the manufacturing countries and service countries and enjoys benefits of both, it is only because it encourages immigration, entrepreneurs and fosters sprit of entrepreneurship by building innovation labs, investing in academics and research and encourages patents and values contributors and acknowledges them with full respect

Wake up dear.. and decide where you need to be

Mediocre, Path breaker, Disruptive, Innovative, Complacent or Just being enamored by networking

Life is all about contribution to society and in process if wealth gets accumulated, knowledge gets accumulated, health gets benefited and welfare need gets recognized keeping security aspects in mind.. any nation can collaborate with any other nation sans conflict and have healthy synergetic association to build strong eco systems

Connected begins by connecting the dots

Transport begins by linking the dots for a defined journey route

We as enablers can only keep pushing linking these dots with patience and perseverance and of course PASSION

 

 

 

A

Startup Country

There is a large conference in Pacific Country on Entrepreneurship

Ace Entrepreneur James announces a news

“Each family in pacific ocean country will be getting US$10000 to start a venture’

Rose and her family who is struggling to have their family meet their ends read the news paper

Rose ‘this is an opportunity’

David ‘common are you believing in that news’

Rose ‘I will wish to export false pearl earing’s, necklace and so on’

David ‘common.. i still cannot believe. who will teach us business model

Rose ‘everything is on net’

David ‘so?’

Rose ‘have made these fanciful items.. please go to ALIBABA and put that fro sale

David puts the same..

Surprised after few days

David gets surprised

Rose ”let us take chance.. will open pay pal account and ask them remit to money’

David manages to open a pay pal account

1 month latter Rose has made first transaction. She is happy

Rose ‘we will send Bob our son to good school.. let us apply for that competition’

Rose is surprised to see her venture getting disqualified

Rose ‘not enough traction.. why then he announced so’

David ‘i said so already’

Rose ‘am determined… let us get more orders’

Soon enough Rose gets huge demand…

Rose ‘David… let us begin investing in our fellowmen’

David ‘ok’

Rose becomes an investor in a year’s time

She sends an email to the Ace Entrepreneur

This time she gets reply

“I just showed the way.. have created a 50M$ fund and wanted to check who could head this to promote startups.. you are one of my board member.. congrats’

Rose hugs David

Rose ‘never knew this would happen

David ‘am still reeling in shock’

CEO Talks

CEO Jack has been invited to a meetup in Houston.  He is supposed to give a presentation on ‘Entrepreneurship’

Jack finds his presentation deleted and his lap top is having problems.. He had hurriedly done the presentation, so no back..

Jack ‘I think am unprepared for the presentation’

Organization Tim ‘No problems.. with your experience.. all should be fine’

Jack is called on stage

Jack has a stage fear too.. relied on presentations all the while..

Jack finds nervousness reaching his peak.. slowly he musters courage

Jack ‘what we do routine.. we get bored. and then we need to do something different. Entrepreneurship begins from there’

Jack finds the audience looking at him with high expectation…

Jack ‘hey i think I should sit and talk’

The organizers get a chair

Jack ‘and then.. one day when are in our positions.. we get surplus money and decide to invest on individuals whom we feel have potential..  Each CEO should become an investor’

Jack finds his throat dry

Jack calls for water

Jack ‘what happens when your baby crawls, walks and keeps growing.. you enjoy that phase. When in job you join companies which are grown babies.. you need to get used to that culture.. Here it is your own baby.. you are imbibing your experience, knowledge and culture’

Jack is getting stomach cramps

Jack ‘I think am uncomfortable without slides’

Audience echo ‘Carry on.. you are giving vital tips’

Jack gets confidence

Jack ‘and then…your baby grows… and in US and many countries.. baby wishes to be on own.. and it is time to move out of baby’

Audience begin clapping hands..

Jack ‘Do I ever ask returns of investment from my own kid?’

Audience is fully silent

Jack ‘A true entrepreneur would have PASSION for one’s baby.. so will not be bothered of ROI however baby needs teachers, mentors so  will mentor them coach them and soon costs on one baby keeps increasing. we tend to neglect other babies if we cannot afford money’

Jack drinks glass of water and wipes his sweat

Jack ‘Sweat equity.. and investment.. the entrepreneur decides to think the baby will support him but.. but the baby doesn’t so  an entrepreneur disowns the baby and makes profit out of it..

Jack ‘Do you wish to sell your babies?’

All become silent…

Jack ‘LIFE is a game of buyer and seller. We humans buy everything and decide to sell out if purpose completed and what remains are memories’

Jack ‘So finally the baby grows.. and keeps growing and you just remain happy with its growth with no expectations. True Entrepreneur who cares for its venture sets a vision, mission, growth too but not with an expectation to sell of the baby’;

Jack ‘hope you enjoyed my speech’

There is thunderous applause…

After the event..

Jack looks at the video

Jack ‘hey could see myself so uncomfortable… stage fright can kill the tempo.. Hope all indeed clapped for genuine reasons’

His wife Sarah smiles and says ‘CEO TALKS always have hearings’

Founder and Co Founder Drama

Founder ‘I founded this company with an Idea’

Co Founder ‘I grew the company’

Founder ‘but I got the first investor back the company’

Co Founder ‘I got the first marketing assignment for the company’

Founder ‘why you raking after all these years’

Co Founder ‘i don’t like that lady’

Founder ‘who?’

Co Founder ‘the one who is an investor in VC firm’

Founder smiles

Founder ‘you jealous of her?’

Co Founder ‘if she is in, I am out’

Founder ‘We need money’

Co Founder ‘either she or me’

Founder goes to have a drink in bar

Founder gulps a peg and looks at the bar tender

Founder ‘Am founding one more company related to perils of drinking.. can you be my co founder’

The bar tender is full red and runs off

Co Founder comes to the bar and gulps two three pegs

Co Founder ‘either she or me’

At night 10 pm.. Founder pen’s a thought

‘Does Gender really matter when two souls love each other. Why the jealousy happens. I could be MALE or I could be FEMALE. this thought is universal. If am a man and my co founder is a man so what, if am a lady and co founder is a lady so what, if am a male and co founder is a female, so what.. GENDER EQUALITY demands equal buy in, so should I not respect my co founder.. let me reject the investor as well as the bar tender and be loyal to my Co founder’

One of curious reader who reads this asks ‘but were they male, or female or what?’

A whisper comes ‘Does it really matter? enjoy the drama and keep guessing as love doesn’t need a symbol to herald itself.

After all any social cause awareness can be expressed in multiple ways and here GENDER EQUALITY is the focus of this story’