Startups need to understand economics of running a startup

Startups need a Minimum viable product/service along with

1) Tactical guidance

2) Milestone based investments

3) Cashflow Management with balanced budgeting covering development, marketing, implementation, documentation, security, process, hardware, infrastructure.

4) Stable team composition

5) Market Linkages

6) Approach to give ROI (Return to Investors)

Valuation will happen in the journey. Many entrepreneurs begin focusing on raising investments covering huge burn rates.

Rs10lacs = US$14000 roughly.
1) Startup spending Rs10lacs/month of which Rs5lacs is management overhead.

2) Startups spending Rs2lacs/month with Rs1.5lacs as marketing overhead

3) Startups spending Rs5crores/month on technical team with 10lacs/month on marketing.

If you observe all of above examples show imbalanced budgeting. Please revisit your budgets.

I have been helping many startups understand, reduce costs and also optimize profits through market linkages. Some startups understand it, some argue, some continue.. but nevertheless unless a balanced budget not planned, no startup can ever get good results.

Rich and Poor

Rich and Poor
An old Amitabh Bachchan Sir Movie Deewar has a dialog where Sir says ‘he has all the material pursuits in this world, achieved name, fame, power everything and what does a job really offer. It cannot feed your stomach too well, what really do you have?’
Sir Late Shashikapoorji just pauses and says ‘he has mother with him’
Now 4 decades later, the divides remain the same. The movie symbolises a big wall where there is scope of only rich or poor. Middle class as such not included in the heroic movie of victory of good over evil.
It symbolises the revenge of the downtrodden, exploited individual who rises to top as a hero and gains power and then realizes that he has lost or rather loosing his own mother in all the power quest.
The humble poor guy, only requests the elder brother to not go in wrong path and salvage self before it is too late’. Now who wishes to be rich and who wishes to be poor is again really a choice of ethics and moral conflicts which is depicted in the movie.
The neglected middle class really didn’t have place even in that movie but the unemployment scenario well depicted with the hero also willing to loose job and also realizes that he is shooting at some poor labor’s son who is robbing a loaf of bread for survivals

Sabse bada dollar?

Once upon a time, there was this movie Sabse Bada Rupaiyyah (Money comes at top) and an entertaining story…

but how is Dollar relevant today?

Joy ”Pound is better.. more amount we get in India”

Samuel “Do you know dollar.. many CA”s actually collect dollars as hobbies in hope one day dollar will reach 100 rupee and they make a great killing”

Mark dear friend of Samuel ”I am most of time glued to monitor to check where rupee depriciates and I transfer money.. even cent savings is important”

Harry “Me too not investing these days as rupee seems to appreciate.. good lucks.. let us wait for $ to rise”

Munna “What is big deal… what rises will fall down.. what falls will rise.. or will not rise again”

James “Human values if it falls below.. then”

Munna ”will rise again..  when no money exists, love exists.. and when money exists, love doesn’t”

Elisa “common economics professors.. this is our annual meet and you are talking about Sabse bada Dollar…   Munna… you are teaching us Hindi in your own style.. coming all way from Delhi Economics department.. gold medalist.. unbelievable”

Munna sips a wine and looks upward…

“currency is so important in our life that we forget the currents in it and just succumb to it..  anyone can leave anything for it.. and when it leaves you… we remember all who were left by us because of it””



startup secrets

never begin approaching investors till you have not completed your product.

never focus only on seeking investments.

budget your startup with following economics



2X investments needed

X is something which can be decided by only you..

so with this economics, you realize you do need always a cofounder.

so 2 technical folks can get into initiating something, but partnering with 2 marketing folks may give better leverage

always remember.. the X component has to be as lean as possible.


Connected Love

Connected Love is all about being connected in heart and mind with no need of WI-FI, no need of blue tooth.. All you need is just a single protocol of understanding..

Spiritual love as it is called or platonic feeling as it is felt or passionate compassion as it is understood, Connected Love at times is a confused thought in our mind to think whether Í should say ” I love you” or should I say “I like you”?

The confusion remains and still the interactions continue… sometimes in Whatsapp..

sometimes in email, sometimes in facebook and lo and behold you find you are in love with so many individuals..  seen and unseen

Are they your fans.. or are you their fans?

or is it just been connected and be followed or to be followed?

The miracle of connections begin with a communication and once protocol established, there is wireless moment of thoughts which flash into your mind and heart to feel a feeling that love does not need closed intimacy alone but it needs enrichment of soul to understand the perception of lover’s love and align accordingly.

If a startup ‘LOVERS PARADISE’ thinks of only introducing a concept of spiritual love match making site..  why it cannot be successful?

Sans any face.. sans any message.. just 1 message allowed for connection and once connected…  expressions through symbols of various marketable products.. being sold as only image… wow.. if someone wishes to spiritually get married to someone on net.. a big list of grocery images being sent only with no other responses… and lo and behold.. if some one indeed purchases those image items from any popular stock ecommerce site, they get a 20% discount

So what if I teach you commerce in love.. is love not a give and take affair? and even if someone is only giving or someone is only taking.. still that equilibrium shift needs a balance somewhere?

So what if I teach economics in lay man words.. finally the demand of love is more then the supply.. and am only creating more suppliers here..



Impoverished Country High Vision


Jacob is attending a conference having large number of eminent ministers of various countries

One of minister from remote country expresses concerns of unrest in his country..

Jacob ‘why is it so?’

Minister ‘poverty and lack of education’

All echo simultaneously ‘poverty is linked to lack of education’

Minister ‘how we solve problem of unrest in such countries’

Nancy one of the delegate from developed country expresses ‘huge funds are given to various countries as charity or Corporate social responsibilities or grants or research funds and then the countries tend to loose focus, change priorities and it is messy’

Minister ‘our intent is good but unfortunately an unrest begins.. natural.. man made and then.. ‘

Jacob ‘entrepreneurship thrusts need to be more in such countries and NGOs who work at grass root level be mandated towards social entrepreneurship initiative’

All remain silent

One of the prime minister of a country announces

‘Jacob will be designated chief adviser in our country’

Jacob looks surprised

All give a big applause

Jacob ‘but your country is in mess.. total unrest.. absolute terrorism and crime.. including sex violences and what not’

Prime Minister ‘Connecting to people and guiding them.. different ball game all together. if you are confident.. do it for me.. draw a vision document.. am pleading all other country to approve the budget right away.. and then’

There is an uproar and pin drop silence

Pocker faced one president mentions ‘elections coming.. unrest in our country too.. cannot help’

Soon others also backtrack

Prime Minister ‘did you all get our problem?’

Jacob feels guilty

Jacob ‘Sir.. let me take only one single problem and will try to solve it.. only education..

Can you afford US$100000 for same’

Suddenly there is a big clap

All countries decide to donate US$1000 for this cause.. and the project begins..

Prime Minister of the remote country ‘boy.. why you decided to take the risk’

Jacob ‘sometimes life gives you an opportunity to fight for a cause.. who knows the country could be next popular developing country in some time’

Prime Minister hugs Jacob

As the conference ends.. Jacob gets invitation from 50 countries.. to solve their problems too’

Jacob realizes that initiative is needed.. someone just needs to be a leader.. make their voice felt.. and all will follow them..’





Startup Busts

Startup with a 10K

Moving up all the way..

The traffic and its valuation

Moving up all the way..


One investor follows other

Startup seeks 1M

Moving up all the way

Hoardings and Media

Talking all the way

Success Stories,

Celebration all the way


More and More talks

More and More headlines

Time for Series B

10M what else it wished


Consumer spent.. all the way

Revenue dipped as always

Loss posted still after 5 years

Investors remain happy

as notional money would monetize

it would eventually so why regret

the founder got into conflict

the investor got into shocked daze

is this the reason he invested?

the founder remained uncontrollable

true entrepreneur as he was

not wishing to succumb to investor pressure

is this a bust?

end of that startup?

founder resigned

sleeping under sky

wondering why this race for money

why this race for impact

what is the impact if one person

just next to another cannot

convince each other to work together

and as team create success story.

upmanship and wars taught since child

celebrities worshipped as always

why we create a hero and make him a zero

why she remains inconsistent

the lady luck tosses and keeps you guessing

as the bust could be temporary

good days will come again

once a failures.. still an experience

experience can make you again a hero

a new startup and rest is history.


Mathematics of Emotions

A tear drop fell as Susan helplessly wondered when will George have time for her.

George ‘it is 20 drops and then the sprinkled flow.. the force was a bit uneven’

Susan ‘George.. why mathematics in this’

George the mathematician always felt everything is maths in this world.

George ‘as you lost those 20 drops.. the earth gained water. Everything balances out.. Minimum 1 million individuals in this earth may be crying every day.. it means 20 drops of water on average.. do you know the water generated.. the volumes’

Susan shakes George up…

Susan ‘George.. why am i in love with you.. you are crazy.. weird.. still not sure.. what makes me hold on to you’

George ‘bonds.. our heart has built strong bond.. the integrated bond cannot differentiate values.. hence we look unified to others.. but if we put a mathematical formulae to our love

Our love = (our physical mass) x emotions ^ speed of light

Susan ‘George.. mathematics is tough. Now you introducing science’

George ‘your mom failed to understand economics of love.. more the demand.. less the supply.. and vice versa.. hence your father seperated from her’

Susan has more drops oozing out..

George ‘if ever anyone kisses anyone.. the number of membranes which get touched.. ‘

Susan ‘common I know you are weak in biology.. don’t do such stupid talks’

George ‘infinite contacts happen during a kiss. hence binding becomes more special.. then normal eye contact’

Susan hugs George.. and kisses him on his lips

George ‘i have to now focus on abstract algebra.. everything is hypothesis..   Susan kissed george, it means she loves George.. (null hypthesis)..  now who will prove and reject this statement..

Susan ‘you.. as you have hammered me with so much maths that I know you will prove I do not love you’

George ‘funny girl.. you know I will exit and still you hold on to me’

Susan ‘because you are a special unique creature.. very simple in heart.. hence’

George ‘I used to hate divisions and multiplications.. but now I divide my love. between maths and you.. i multiply my love for maths and you by asking you more mathematical questions..

Why is it that your heart beats heavily..when you are near me?

How many beats were heavy and how many normal..

Susan has left to prepare food with a weird look

Susan has adjusted to her boy friend’s madness.. hence her relation survives..  hope all do that. for companion support.. tolerate each other’






Hammer had a great penchant to invest in stocks.  24th of August 2015, he has lost 2 Million Dollar.

What triggers such low sentiments. He is sitting harassed and drinking beer.

His friend Rob visits the Bar.

Rob ‘chill pill.. it will rise again’

Hammer ‘I guess with the money lost, I should have open a corpus fund for promoting startups’

Rob ‘relax.. take it easy..

Hammer ‘bond increases, god too fine a bit ups and downs.. but look at DOW’s industrial average… you will see the growth story’

Rob smiles

Rob ‘don’t be so sarcastic’

Hammer ‘My father a great industrialist named me Hammer because of his loves for instruments and felt Industry needs Hammering continuously’

Rob ‘what next?

Hammer ‘I want to promote industrialization.. will open a venture funding for that’

Rob ‘are you kidding?  no one touches factory projects. Banks do that’

Hammer ‘Unless core industries don’t perform well. how can any one invest just in 2 to 50 page websites selling goods or services.. do you feel ecommerce will happen the way it is when lay off’s begin’

Rob is silent

Hammer ‘Am determined to promote core industries’

Rob ‘eroded turnovers, scams and corruption saddles such industries’

Hammer ‘Foreign exchange reserves..  what level are right for such countries? What opportunities get lost?

Rob ‘the developing countries are too saddled with dependencies on external resources.  deficient business leadership, infrastructure,  unskilled manpower, inadequate domestic monetary reserves, deficiencies in judiciary system, inadequate capacity building and dis-interested people coupled with unethical practices and uncertain weather conditions. Education costs too a factor’

Hammer ‘yes in name of industrialization, environment got eroded over period of time.. It is sad’

Just then heavy shower comes in..

Hammer ‘weather reminds us that soon happy days will come too. Let us attempt this Rob.. Let us talk to the developed country ambassadors on reserve baselines. I know an influential economist who can influence folks’

Rob ‘who is it?’

Hammer ‘nothing much..will send appeals to finance ministers of all countries. one is through media, press release and then…’

Rob ‘you will get hammered’ and begins laughing

Hammer gulps the beer and returns back to his car to return back home

Love demands Nothing

Paul ‘When someone says I am in Love with You..  It has 2 actors. Love is the mediator between these 2 actors. A one way process’

Julie ‘What is a two way process?’

Paul ‘When someone reciprocates and says ‘I am in love with you’. Now it is a 2 way communication.

Julie ‘what happens next?’

Paul ‘mental communication, emotional communication, physical communication and at any point of time some communication could go wrong’

Julie ‘why does that happen?’

Paul ‘because the force of one actor overpowers force of another actor.. The communication becomes imbalanced’

Julie ‘means?’

Paul ‘If one actor gives love and other actor only accepts it.. it is of no use. The other actor too needs to give back love equally’

Julie ‘so..’

Paul ‘Love demands nothing.. Love is simply a wire.. a communicator.. and how we use that wire, depends on us.. Like how we use an electric wire or a gas pipeline or any string.. could be your exercise rope’

Julie ‘means.. any unnecessary force can break the wire’

Paul ‘yes.. hence love should not be forced upon. If someone accepts your love fine.. if someone doesn’t let the feelings remain genuine but don’t force self on the other actor’

Julie ‘will the other actor respond?’

Paul ‘depends on the signal…  Human Heart and Mind get so many signals from so many individuals.. we never know when the signal matches.. so have patience and wait for the turn..   each of these organs have sort of firewalls. so be careful to not send unnecessary signals which will get blocked permanently from those organs’

Julie ‘Paul you are getting into science of Love’

Paul ‘When we have Data Science, we have Physics, Chemistry, Biology.. why cannot Love Science be introduced in Colleges. Am sure it will sell like hot cakes. All die hard romantic guys and gals will prefer learning that. and we can remove illiteracy too’

Julie ‘How?’

Paul “love demands nothing.. Love can teach us history, geography, maths, economics, science, art, craft, politics, network, communication and management too’

Julie ‘You are a professor of Economics and you are saying this to a Social Science professor’

Paul ‘Hence I never forced over you to respond to my love till date’

Julie ‘common you never told me too’

Paul ‘was waiting for right moment.. both of us are settled, were from same college, so can we unite now?’

Julie hugs Paul and whispers ‘I did read your diary 5 years back and was waiting for this day’