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.

 

 

Broken Pieces of Life

Sam and Jane both are great friends and began their journey through same old government cottages provided to their parents..

As they both fell in love midway somewhere in early life, they never realized life would drift them apart..

Sam ‘did you ever realize how much I missed you all these years’

Jane is silent..

Sam ‘Jane.. I agree, I cheated on you for moving ahead in life.. but I also asked forgiveness’

Jane has drop of tears..

Sam ‘never knew.. we would meet at Kanyakumari of all places’

Jane looks at the 3 oceans merging..

Sam ‘life is such that it moves you in so many directions and then there needs a convergence’

Jane looks at Sam

Sam comes closer to Jane..

Sam ‘am here to set up a fishery unit and it will help multiple fishermen’

Jane ‘am here to understand what did Swami Vivekanand feel finally with outcome of life’

Sam ‘Love is all about forgiving and forgetting..  sometimes we mess up with small ego’s.. I just cheated you to not inform you of that female.. who was my business partner..’

Jane ‘but you did get close to her’

Sam ‘you know this eco system.. so many folks.. so many ventures.. so many directions.. no convergence for self…  I got closer to her to only an extent where she could move up in life’

Jane ‘but why you didn’t inform me?’

Sam ‘do you know a doctor-patient relation.. very precarious.. reasons if patient comes closer to doctor.. doctor needs to self control and vice versa… I maintained that balance hence I could develop this model’

Jane ‘Swami realized that true liberation is all about giving away.. am just about to.. and you again bumped into my life’

Sam ‘water can raise to heights in tide.. emotions too.. but just when we walk at seas shore.. we realize all broken pieces of life finally can get tied up.. if all those pieces are still with you’

Jane ‘not sure where I lost you’

Sam ‘you haven’t hence we met in the beautiful sun rise.. shining over us.. Jane.. let us make a new beginning’

Jane hugs Sam..

Jane ‘I always wonder how to cope up with an individual having public life.. I cannot.. Am possessive’

Sam ‘relax Jane.. I do agree.. you have that temperament.. but then.. I am willing to arrive at a formulae’

Jane ‘what?’

Sam ‘my mobile, face book, whatsapp.. all IDs will be available to you.. nothing deleted..’

Jane ‘no I trust you.. I have a simpler formulae.. I will block the ones I feel uncomfortable with and you will need to explain to me why you got comfortable with them and this way all broken pieces of life will join by self’

Sam smiles..

Sam ‘are women born to be possessive?’

Jane ‘no.. even Men do.. it is not a gender issue.. but we are trying to look at that aspect of life which breaks so many lives’

Sam ‘forming a program how to over come possessiveness?’

Jane ‘yes’

Sam ‘I can invest in this.. it is a good concept.. I guess many takers will come’

Sam and Jane are happily eating Idlis in the road side joint and see a poor person asking for Alms

Sam ‘Jane.. life gives us everything… we never look at ones who are more miserable then us and end up being miserable with whatsoever we have’

Jane smiles and asks for coffee which is being served hot..

Jane ‘I love the people.. so simple.. so innocent’

Sam ‘hope this fishery project kicks out well’

 

Where am I?

Where am I?

In between entrepreneurs and incubators

In between incubators and accelerators

In between angels and term sheets

In between startup and Mentors

Life of me is what PASSION all about..

PASSION begins with a strong zeal to achieve an objective and seek security from the same.

So next time if I am dozing of to sleep, not writing blog, somewhere lost,

realize am somewhere in between

wanting you too be someone there..

and spreading entrepreneur spirit all over.

Personal life too exists and am in between there too… balancing family and self.

 

 

 

startup bucket

comes incubator

bunch of startups in a bucket

the last which goes in

the first it comes out

is it the LIFO model?

the first which goes in

the first which comes out

is it the FIFO model?

All say ‘No’ to the management consultant’s lecture on INVENTORY

The consultant responds

‘Dear Incubator do not go overboard with inventory of startups

Just in time inventory too exists :)’

 

My little baby

My little baby

jumping and fretting

why am I not getting seen?

why am I not getting heard?

why am I left alone?

why this partiality?

why that baby preferred?

why not me?

why ? why ? why?

slowly and surely the baby begins walking

and there the baby gets happy and bubbling

now the baby can even walk, talk and does not cry much

the baby is chatting away, playing games with other friends of theirs

welcome to the incubation program dear

you now have many more babies to discuss wuth

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.