closing startups

closing startups.. what you gained..

an experience with investors

an experience with self

that what could go wrong.. went so

but no onwards a choice exists

be an employee if you cannot lead

be an employer if you lead

investors burnt their money

lost and forgotten

some ventures succeed

some ventures fail..

but let us hope for best

so decide what you wish

 

 

Startup questions

Will I get invested soon?

No

Can you connect us to few investors?

Yes

Will the investors look at our traction and get impressed?

No

Should I approach investors then or wait?

Wait..

But I dont have funds to bootstrap?

Pause and work part time too

Can the investor manage to give me at least money for me to do basic startup pre-requisites?

Common if you want to be an employee, then do that.. why you want to be an entrepreneur.

In nutshell individuals should not confuse entrepreneurship as another form of employment given by investors

 

Cloud bursts

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.

fight to finish

fight to finish what you have in hand.. before you start next

the more you have too many things to do..

the initial one will remain incomplete.

Farah tried to have too many hands in everything.

Wanted to be best daughter

Wanted to be best mother

Wanted to be best professional

Wanted to be best looking

and in this quest continued to strive towards perfection..

she fell in love with Samuel and there her life changed

Samuel ‘choose me or family?’

Farah had tears.. she was failing as a daughter

Samuel and Farah wanted to educate their daughter in boarding school

Daughter Tina felt neglected

Tine ‘you are not good mom.. just for your selfish interest that I should get best, you deprived me from my parents itself.. am not connected with you’

Farah was doing well in her profession but one incident shook her up

Boss Frank ‘why did you befriend James.. he knows our company details more then even my other employees’

Farah had met James and as Farah had hidden desire to also pursue modeling..

James ‘Farah.. my sister will make you a model.. why you wish to be in that company.. both of us can start something’

James and Farah got close and then one day

Samuel ‘if you wish to fight to finish whatsoever you have and loose everything.. who will stop you from going down drains.. you are not also a good wife’

Farah has drop of tears in her eyes

Is ambition usually disastrous..? why cannot an individual at times do what they feel happy about.. but not force someone else to do so..

Farah realized her mistakes and whispers to James

Farah ‘I may not love you as I love Samuel.. but without any expectations.. just want to say.. I think I will pursue modeling for few days now and then focus on work”

 

Sense of Responsibility

Employer ‘I give you salary every month, so what is harm in you abiding by the employee agreement”

Employee ‘I do my work zealously and you too earn from my contribution and make money, so what is harm in clean exit.. Why cannot I join your competitor’

Employer ‘No.. you will face consequence’

Employee ‘Anyways have made a decision.. so you can do what you wish’

2 months later Employee gets a notice from ex company..

Employee gets into WHATSAPP with Employer and chats

Employee ‘ It is funny.. I have not joined their competitor too…but still will send a reply’

Employee writes

‘I have become an entrepreneur.. non compete.. am in food business now.. so this notice is no longer applicable’

Employer writes

‘Why could you not inform me earlier, I spent US$5000 on a legal team and even more.. I could have invested in your venture’

Employee writes ‘I need you guidance to make stringent rules on my prospective employees.. you are so good at it’

Employer writes ‘Now you can understand how much challenging it is for me to be an entrepreneur’

Employee writes “Are all entrepreneurs so insecure?”

Employer writes “Even Investors are as they have a sense of responsibilities towards money”

Employee writes “Should I join you back if you pay me 60% rise”

Employer gets emotional

Employer “you are like my family.. join dear…”

Employee holds a party with his team members

Employee ‘I kept asking them for rise.. they never gave.. so finally I got what I wanted”

Employer overhears this

Employer ‘Do you have sense of responsibility?”

Employee ‘Sir..  all of us work for a profit only.. any entrepreneur who says he is not working for profit.. no investor will make you stand near them..   it is a mean world.. what else could I do.. relax Sir..  I am giving you an order of US$10M.. so do not ask me from where I got…”

Employer ”Competitor’s client?’

Employee “Please let us not discuss now.. there is a saying.. everything is fair in love and war and even business”

 

 

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’

Am an employee

Mary is an employee who loves to claim she is the one who has moved the business up.. One day her CEO Jerry calls her and informs her that it is team work and nothing else but team which makes a business succeed..

Jerry ‘do you know the effect of your such talks’

Mary ‘It remains a fact.. you never knew anything’

Jerry ‘common.. Mary .. I agree the pitch competition.. it was won because of you.. I never treated you like an employee’

Mary sarcastically ‘common.. you hardly gave 1% equity for my sweat’

Jerry ‘stock options.. it is tricky.. I did pay handsome salary’

Mary ‘why so? you could have given me at least 20% equity’

Jerry ‘I never stopped you from leaving company.. you can start something of your own’

Mary ‘yes I realize I wasted my near 5 years with you.. Am an Employee right?’

Jerry ‘let us talk latter’

3 months later

Mary ‘am starting a venture?’

Jerry ‘non compete agreement.. you need to sign that’

Mary ‘you are stupid.. do you understand right of livelihood.. that supersedes all your legal documents’

Jerry ‘anyways do sign it’

Mary ‘why do entrepreneurs become so insecure when they move out of startup mode to being a successful business person.. why the fear of loosing’

Jerry ‘let us talk after you sign that’

Mary signs the document off

Jerry is relieved

Mary ‘Money drives everyone.. It is important for me too.. but for me humanity is more important.. am planning to provide free consulting to all’

Jerry’s face falls down…

Mary ‘so if I do not charge any money.. and my employees too do not charge any money… will it still be competition’

Jerry ‘I will put a case of intentional damages’

Mary ‘the most stupid thing which any employer can do is to put cases on employees… rather build trust on employees and see the employee performs well.. trust builds relation.. trust builds business too.. so I will rather perform well and give my best’

Jerry ‘please do not leave me…’

Mary ‘why?’

Jerry ‘I realized my mistake.. am giving you 20% stake in my venture’

Mary ‘ok let me think of it’

5 days later Mary agrees

Jerry ‘I realized that team is important.. but more then team, key folks who build organizations are also important.. value them.. rather then being in fool’s paradise that any one can replace key resources’