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.

 

 

Fooled

Louisa ‘I feel am fooled’

Manuel ‘Why you feel so’

Samuel ”why so?’

Louisa ‘because they made me sign an agreement of 10000 and will be giving only 6000’

Samuel ‘common this is normal practice in many countries. though unofficial’

Louisa ‘so what I do?’

Manuel ‘hence you need to join small startups which can give you some equity if you are being poorly paid’

Samuel ‘both of us are twins and do you know my mom had provisioned to educate only 1, so me uneducated, he educated..  she tried hard to balance both of us.. but then she gave up, I gave up as felt better to let Manuel learn and hope he doesn’t fool me and pay’s me for my sacrifice’

Manuel ‘hence I take care of Samuel and his family and now I propose to you as you are friends to both brothers’

2 months later

Louisa ‘I will marry you on one condition.. stop supporting Samuel’

Manuel is shocked

Manuel ‘he will feel cheated, fooled.. I never had a father to look up. My mom and he sacrificed for my education.. so cannot leave him’

Louisa hugs Manuel and whispers ‘please for my sake.. give him some lump sum amount and close that chapter’

Manuel ‘at times I wonder why human being is made so selfish.. why we think of only our own welfare first.. am not marrying you.. bye for now and take care..’

Louisa ‘you played with my emotions’

Manuel ‘do you really feel so? rather me and Samuel should be saying so’

 

 

Scalability

For few it is outreach to many people with a replication model.

For few it is a decision to scale in linear way or non linear way..

Non Linear Way calls for Partnership..

You and Me need to get together as much as possible and collaborate and think…

It is no longer possible for a single man army to conquer the world. It is bringing confidence in friends, relatives, friends, associates, entrepreneurs, the entire universe to believe that they can scale a concept.. They can scale and make a concept work..

Check on how MCDONALD managed, so many franchisee’s.  Discovery theory at its best of outreach.

Check on how young innovators at times struggle all over world and get acquired.. their patents lost, concept lost.. all in few dollars or may be million dollars too..  but is there an option.. Who will otherwise scale them?

What do social work initiatives lack?

We historically have assumed NGO means Grants.. We need donations for survival…

I tried to change dictum by evolving self sustained model.. but then just as have been working and slogging in the commercial ventures, can i manage self funding it, some times direct, at times small loans too.. Name the game of entrepreneurship, have done it all.. What if I stop earning? Nothing much, my family would say.. relax first ensure you help your family and then others.. Hence you need to keep searching the balance.. If you are lucky enough to work in environment where you have comfortable living and also contribute to society.. big cheers to you.

Are NGO Leaders never going to be Entrepreneurs?

They can.. They need to partner with Entrepreneurs.. They need to scale their small success models and reach them out to many..

Scaling by Proving.. is all what is needed as we keep learning from great business men with even greater social responsibility PASSION…  Like Sir Guru Deshpande, Narayan Murthy and many others…

So next time if you have done anything small worthwhile implementing model which you feel can be scaled, just showcase it… exhibit to world.. you can do it..

Loan a Pain Credit a Woe

The entire world works on debit and credit cards..  Moses was no different. He had around 5 bank credit card, had a loan on his house..  His wife too working. A lavish life style though were upper middle class. His wife Freida doesn’t know to cook.. So husband and wife both eat out..

Frieda ‘Our model of using rolling credit card is dangerous.. We keep doing this transfers from one card to other.. What if one day we get pink slip’

Moses ‘If one gets it is fine, if we both are jobless then it is an issue’

Frieda ‘At least our parents should have made a house for us.. This is crazy.. One generation has to slog to get basic infrastructure in place for a family.. and not sure what our kids will do then’

Moses ‘We don’t have kids yet’

Frieda ‘I cannot dare.. It is not possible… I think once our furniture loan and car loan ends we can plan late next year’

Moses ‘Will this world continue to work on plastic cards only?’

Frieda ‘It helps.. Sometimes if we are just having money crunch.. cards save us’

Moses ‘Frieda, next month I plan to host party for completing 10 years in same company’

Frieda ‘We can manage upto US$500 budget for party through my card’

Moses ‘Interest rate of 3% ..reducing balance..not bad’

Frieda ‘Will we ever come out of debt?’

Never say No if you wish to say Yes

Sam ‘Sarah, do you love me?’

Sarah is in two minds.. She doesn’t want to loose her focus from the expensive course her parents have spent on for her to be in a reputed college in US

Sarah ‘Let us be friends.. I don’t think it is love’

Sam ‘You will regret one day’

Sarah just smiles..

Both are studying in various disciplines

After a month, Sarah see’s Sam with a very beautiful girl

Sarah rushes to Sam

Sarah ‘Sam who is she?’

Sam ‘She is the best happening.. She is from Russia, Lisa’

Sarah ‘Oh best of lucks’

At night Sarah ponders..

Sarah and Sam used to almost have dinner together.. She remembers how he would wait for her, without fail wish her good morning and…

Sarah has tears in eyes…

Next morning… she is sitting sad

Her professor Jim looks at her…

Jim ‘Sarah.. why you are sad?’

Sarah ‘Nothing much’

Jim ‘Let us have coffee’

Sarah ‘No sir… it is alright’

Jim ‘Let us go.. don’t worry.. I have had multiple tea and coffee with students..’

Sarah smiles and goes with Jim

Jim ‘Did you say No to something?’

Sarah looks surprised

Jim ‘Never say No if you wish to say Yes’

Sarah ‘Sir.. but sometimes life makes us indecisive’

Jim ‘In mind just think No but don’t say it out.. and check for a month how you feel the distance from that object’

Jim ‘If you feel that object is become important point of your life then…’

Sarah ‘But then isn’t addiction dangerous?’

Jim ‘to control those.. just begin focusing on something else….some other object’

Sarah ‘Again will feel like saying Yes to that object’

Jim smiles…

Jim ‘Slowly you will get balanced and you will comfortably say No or Yes depending on situations’

Sarah ‘I lost him to Lisa’

Jim ‘Don’t worry, focus on your studies as that is what you wished’

Sarah ‘Sir, can we have dinner tomorrow?’

Jim smiles ‘Sure why not?’

Baby steps..

Steps we take as we tend to fall as we learn to walk

At times we fall, at times we get up but we do attempt

As we attempt, we learn to balance and soon

we decide to even run

Happy with our achievement, we smile

and all smile that the baby learnt to walk

Mentoring entrepreneurs is all about helping baby take little steps to walk and then run in the business.