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.

 

 

Newton

Newton a great funny guy whose name was coined after great scientist Newton never knew till date, why he was named Newton..

His mother Freida mentioned to him

‘every action has an equal and opposite reaction’

Newton wondered why

Freida ‘your father Joy always had failed experiments in life.. hence feel you can one day come up with a new formulae’

Newton ‘am a funny guy.. and not also a scientist.. how will it come..  will i need to wait for apples to fall over me?’

Freida ‘see.. i have only one hope.. one day you contribute a new formula to man kind’

Newton ‘not possible MoM.. . too many formulae floating everywhere..’

Newton leaves home to take some solace near his favorite water spot..

Newton looks at sky and sees clusters of star.. at night time they look too beautiful..

again he pauses… and sees stars cluttering further and some distant stars shining too

Newton wonders ‘is proximity a parameter for successful relation? what happens in virtual world..  why two people can just chat continuously and may bind so well.. that they feel close to each other… is proximity having correlation to time..’

Newtons’ best friend Georgia steps besides him..

Georgia is a mathematics professor.. who feels Newton has good sharp thought process. so should do well’

Georgia ‘you.. murmuring proximity and all that’ and plants a kiss on Newton’s lips

Newton ‘is proximity being physical next to each other.. or is it mental wavelength?’

Georgia ‘time is always playing crucial role in all formulae till date..’

Newton ‘proximity introduces flux.. it introduces increases something…  big brand attracts big customers.. big pull and so on.. hey isn’t the real Newton the original scientist talking about mass and distance..

Either increase mass or reduce distance…

cool….

It mean… staying closer to customer can also generate business.. staying in heart of people can also generate love… so what can be a simple formulae

Growth =  Relation/  (Distance between you and your prospect))^2

It means if the distance is less, your relation is going to grow more stronger..

cool..

If distance is too large.. growth will be less..

so virtual world is all about reducing distance..

Georgia ‘but what about your mom etc.. the one’s in physical world… they will get distant away from you’

Newton ‘ok let us scrap this formulae.. am still to think further like Newton Sir.. i actually prefer being normal human and only know how to reach in someone’s heart.. i guess am in yours and mom’s heart.. hope someone will evolve some formula someday’

At home

Mom ‘Georgia told me you are evolving a formulae… please.. focus on that.. i know am in your heart.. my relation great with you… but think something new… think something’

Newton puts hand over his head and looks upward

‘Father.. why you trying to make me a scientist.. when am just normal human’

Mom ‘it is his strong desire.. he went up.. his prayers will make you create a formulae one day’

 

 

 

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

X – DEVELOPMENT COST

X – MARKETING COST

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.

 

Media Tigers

Manny ‘these folks are nothing but media tigers.. feed on media.. create buzz but when we closely follow their likes..  there are dips… only when the social media campaign begins sudden burst of traffic’

Susan ‘Sir.. this is our business.. they are our clients… we need to promote them.. it is fine to pump in more likes.. and at times hate sentiments too’

Manny ‘am really unhappy with my own business.. ‘

Susan ‘you have been running this so successfully.. why this sudden change of heart?’

Manny ‘my son initiated a startup in retail space… but his competitors used wrong tactics to push hate in other platforms.. and he has gone under depression’

Susan is silent…

Manny ‘Media Tigers thrive on media, social networks to spread message and sometimes it works for benefit of individuals and sometimes it is big mess’

Susan ‘you have been in same business too’

Manny ‘I never realized.. it will hit me so badly one day’

Susan ‘there is no solution.. products get investors.. they have to sell.. hype has to get built.. buzz has to be created…. so it is part and parcel of game’

Manny gets a call

Manny ‘I have to rush.. he committed suicide..’

Susan has drop of tears in her eyes..

After Manny leaves she murmurs

‘To believe or not to believe is something we keep questioning to God.. God is Unknown.. Sometimes as Idol we worship too.. but what sort of belief is this.. where just media can make us believe what is right or wrong and create such psychological impacts and sometimes harm selves too’

 

Business or Value?

Duff has a penchant for collecting precious stones. He is in Turkey on his usual quest to search stones…

He meets Gary an Investor in a coffee shop..

Duff ‘came on a pleasure trip?’

Gary ‘Yes..sort of.. these companies which I invest are showing high valuation but all in loss.. Am deep worried.. at least one should sell off hopefully..else i will be in mess’

Duff smiles..

Duff opens up his box and shows him variety of stones and pebbles..

Duff ‘each stone is about 10$ worth.. and I have 100000 such type of stones collected from globe’

Gary ‘who will give you 1M$ for these stones..?’

Duff smiles..

Duff ‘some have diamond traces in it.. some gold.. now I will not seggregate and give you the choice..’

Gary ponders..

Gary ‘I have my last 2M$ left.. you suggest I take them?’

Duff ‘choice is yours’

Just then Riya, Duff’s girl friend comes in

Riya ‘Hi Duff, the stone which you gave me fetched us US$10000.. so we are now good’

Gary ponders.. ‘is it a scam, hoax or what’

Duff closes the box and leaves Gary…

1 day later Gary see’s headlines ‘Diamond Industrialist Duff had donated 10M$ for Turkey welfare’

Gary’s eye looks in disbelief

Gary rushes to the restaurant where he had met Duff

Duff is munching his lunch..

Gary ‘you never told me your background?’

Duff ‘Boy.. modern day investors just focus on valuation game.. the hardcore struggle of choosing diamonds in pebbles is unknown to them.. they rely on imitation model or wonder if disruption exists.. they invest because stock exchange crashes, gold crashes and so on.. only high returns.. I have trained n number of diamond entrepreneurs who choose different techniques to search precious stones.. sometimes in sea, sometimes in sand.. sometimes in earth.. I share 70% of profit with them.. Do not get bogged down by 5 to 10% equity etc.. so you know what…  all happy.. I too am happy’

Gary ‘Sir.. I will invest 1M$ on your business.. just 2% equity enough’

Duff ‘Gary.. investments only do not guarantee entrepreneur success.. Mentoring and Coaching.. an attitude grooming and teaching entrepreneurs to share their profits not only with employees but also their agents, distributors, marketing professional, PR.. everything maters’

Duff ‘Business has a value provided the value is seen by all stake holders.. else business remains a busy venture but with no real monetizing benefit for others’

 

 

 

 

 

Marriage Proposal

Jose ‘can we get married today?’

Sim ‘I am still at work dear.. and you are saying it to so casually’

Jose ‘got in touch with a marriage maker, he can organize marriage in 8 hours ‘

Sim ‘what? how?’

Jose ‘I want to invest in his venture and thought what other way then to test business model in self.. ‘

Sim ‘why experiment on us? ‘

Jose ‘now.. please.. it is 10am.. see you at 6pm. They just charge US$100 for marriage, plus add US$500 for bride dress and bridegroom attire and for food.. you will be surprised.. any food company can launch their food items with them and even perfume retailers.. so for 50 folks free meal and with only 1 condition ‘in party reception, they will be put a board

This Marriage sponsored by ‘Ree… ‘, ‘Lo…’ etc and the sales representatives will be reaching out to each guest and try to sell their products’

Sim ‘see you at 6pm’

Jose calls Morris

Jose ‘Morris.. if my marriage succeeds.. you will get investment.. How much sponsorship revenue accepted..’

Morris ‘we get 20% commissions on total sales’ and marriage cost around 3000$ borne by them.. congrats Sir, for a free marriage and also being brand endorsement model for good brands’

Jose ‘who gave this idea?’

Morris ‘Do understand any path breaking ideas in story format.. who else can provide but…’

Jose ‘do you really feel this will work?’

Morris ‘trust me.. who doesn’t want free marriage?’

Jose ‘who gave this idea?’

Morris ‘PASSION for ventures need to exist.. ‘

 

 

Dangling fruits

Samuel had great fascination to climb trees and collect fruits from basket.  He would always wish to first catch the top most fruit and then go backwards down.

One day his friend Romesh asked him a question

‘Why top to bottom? why not bottom to top?’

Samuel ‘if i collect the fruits from bottom. the weight will increase.. but if I collect it from top, as I reach down, the weight of my basket will increase. I will be able to climb down better way’

Romesh ‘but you can fill basket and move it down, carry another basket up.. chances of you to fall too exist’

Samuel smiled

Samuel ‘In engagement relation, top to bottom works better and then bottom to top’

Romesh ‘why?’

Samuel ‘because the bottom individual believes in top boss. they follow what their boss agree to do’

Samuel ‘fruits which dangle low are tempting but if we carry too many fruits, our maintenance cost increases..

same way in business.. rather then 50 small clients, 1 big client may make wonders.. and all small prospective clients become our client automatically. these mango orchard is our heritage for over 50 years.. climbing tree is my hobby’

Romesh ‘anything else?’

Samuel ‘climbing right tree is effectiveness and climbing and getting down from tree in proper timeline is efficiency’