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.

 

 

IDLI

Saraswati toils her day making Idli’s and selling it in various locations of Chennai.. at 10cents  for 2 Idli’s.   One day..

Rick ”isn’t it weird.. everywhere I see these white puffed food and people eating it.. Let’s have one’

He stops at a stall ‘give me IDALY’

Rick’s friend Ramu begins laughing.. Not IDALY.. It is IDLI

Rick gobbles two. for Rs6 and finds it amazing..

Rick ‘who is the owner of this’

The stall person informs ”Saraswati”

Rick ‘wow.. I will want to have this in US”

Saraswati informs in Tamil ”it will not sell there.. who will make the dough.. who will make the puffed rice.. cookers are not in vogue in US”

Ramu translates to Rick

Rick ”no worries.. we will make Idli packs and send it as breakfast.. but I want you there”

Saraswati ”how is it possible.. visa etc”

Ramu ”do not worry Sir, many South Indians  out there in US. we will start one”

3 months latter

Rick ”what a business. it is selling hot in Jersey City, NY and never knew i would make a business out of IDLI”

Ramu on skype ‘Saraswati wants to open more franchise.. will you invest?”

Rick ”of course.. Idli is one of my favourite dish now on.. pack up time for fat PIZZA’s’

 

Not Out

Not out in the game.  a pitch which is formed by you partially and formed by others more. We choose to be in the game non voluntary and in pressure loose the game. We choose to be in the game voluntarily and even at attempt can help us at least win the game and even if not won, the joy of being just there in the pitch gives us tremendous confidence to be in the same pitch all over again.

Jose a cricketer feels one should know the art of being in pitch as per need of the game. Sometimes the pitch is rough, sometines turning.. but most of times, the game teaches that a coordinated team effort is needed to win the game.

Ram the ace bowler feels strategies come by way batsmen play.. they are like the sales people of MNCs selling left and center, products of repute with good brand.. but then you need to catch a weak spot… something unique.. so Ram has become an expert coach to guide entrepreneurs how to catch weak points in sales. Few years back his mom never wanted Ram to be a cricketer.. so Ram was pushed to do MBA too and now though he is in cricket, his mom wants him to remain professionally active too in business.. No one knows when he will be out of form.. insecurity in sports is tremendous.. being not out most important.

Rahim the batsman specializes in identifying opportunities round the stadium for a sixer.. it is his continuous quest to dodge bowlers. and there he has pushed another six.. His girl friend Lousia always wonders how he does it.. His message to her

“Gaps will be there always.. identify that.. and get going.. that is where the opportunity is”

Billiard the umpire has invited his entire team for his retirement party.. and there he gives a new dimensional speach

“Dear all.. I kept making people cry, be happy.. all in game.. and the most important aspect of decision making is that one will loose and other will win but spirit of sports is such that the looser too needs a coach.. winner too… so do not ignore the coach and coaching provided… as game is all about being in game for longer duration”

PINK SLIP secrets

PINK SLIP –

 

IT professionals have been working for many years, toiling sweat all over for overseas work with a hope they get good remuneration. The MNCs too were happy with the cost factor and it was a win-win situation.

However this led to unemployment struggles in oversea pockets leading to lay off trends where weak resources are removed, lethargic resources shuffled with a hope they perform and subsequently all know that the day is not far when they will get sacked.

What happens to the individuals uncertain about their career?

Following options

  1. invest some fraction of your saving in a startup
  2. try to explore being cofounder
  3. acquire new skills
  4. if you have good market connects, reach out openly and get projects. each person is out here to survive.. (Survival for fittest)
  5. if you are declared a failure, prove you are not
  6. be ethical enough to not reach out to same clients as what is not yours, is not yours.. you will get more better clients.
  7. learn to self discipline self through strict excercise regime, focused technology education and work on make-belief closer to industry solution projects
  8. try to invest some fraction also in social work initiative and work for a cause.. life will again bring you back to square 1 one day if it is really destined to.. so why not contribute for a cause and leave some please impressions in lesser mortals struggling for day-to-day livelihood
  9. For ones who are in HR role, do not try to keep monitoring too much on resources as they are not machines and may be they will work for full hours and keep their mind at home and come .. so what next (Productivty will remain an issue), rather encourage sense of belonging model.
  10. What about ones.. who actually are just thriving on some management merits of being trust worthy etc : – god bless them as they are in good spots as of now, however sooner or later, pink slip secrets will unwind for self..  as finally an organization needs actual performing team…  what is the use of excel sheets with great analytics if the person who is actually contributing to metrics is feeling insecure
  11. The ones who will get job benefits because of such disruptive changes should also not remain contended as sooner or later, the individual is again going to face similar situation
  12. Learn to live simple and do not hoard too many assets… This principle is followed by large investors when they fund startups and do not like liability driven companies. Look at recent huge loss making startups who thrive on numbers

PASSION FRAMEWORK is for ones who have courage to probe, innovate their life and scope their life for a cause. It can be set in any environment, all you need to do is Act on the scope and own, nurture the cause.

Cause could be ”seeking a job back again, being happy all over again, restarting life all over again, and smiling back all over again to understand your life is not ended.. you are making a new beginning.. enjoy and this time do not just again get into mundane job, rather also initiate a startup

Stars of the day

Huma ‘today is our demo day and am very nervous.. a bunch of investos are going to evaluate us”

Sofia ”it is standard 11 slide deck, however we have an excellent product demo”

Ramesh ‘They have announced all of us to be on stage.. let’s get going”

As they walk on stage..  Sofia collapses

Huma, Ramesh, the Incubation Coordinator Dash all rush to her…

She is unconscious…

Dash ”call ambulence.. we need to rush her…”

Jerry her other cofounder mentions ”ambulence should reach out in 2 min”

Geff the investor ”how …. who informed them.”

Jerry ”Sir,  as she was falling with a jolt, her IoT enabled mobile did the trick”

Geff ‘strange…”

The ambulence comes in and rushes Sofia..

exactly 1 minute later, the incubation lead/Geff get a message ”she is fine, down time 5 minutes, on way to hospital.. check her location… how was the demo?”

Geff is shocked… and smiles…

Incubation lead ”hey lets get to the other pitch.. shocking. .even I was not aware of this demo”

 

startup evangelist

Muthu is an evangelist trying to build an ecosystem for startups in a small city at Kerala.

One day he gets a note from a celebrity in US

“can you build an ecosystem for me to promote my latest upcoming movie Gemini’

Muthu is surprised.. he feels it is a hoax..

Muthu emails his details to James

Next day James calls up..

James ”our film has its base in Kerala and we are launching a surprise social work project in Indian communities’

Muthu ‘what is it all about?’

James ‘create clusters of people who can promote our films in India’

Muthu ‘how much will we get?”

James ”per 1000 group creation, around 1000$’

Muthu ”why… dont you use advertisements etc’

James ‘we want to build a brand… a social value brand till Gemini gets released’

Muthu ‘what is Gemini all about?’

James ”It is an adventure film on how one startup in world got greedy and began acquiring multiple startups till one day the founder realized that rather then acquiring, why not stay together with mutual coexistence and there begins his journey to become startup evangelist.. a trigger to boost community formation’

Muthu ”Sir… but why me of.. all person’

James ”you have 10000 followers..  so why not you..”

3 months later

Muthu ‘Sir covered entire Kerala..you gave me 20000US$ till date and I reached out to 20000 families.. and even talked about your adventure film and Gemini.. but still not sure what are you trying to get out me?’

James ”Muthu… Gemini is not about startups but about entertainment and how it influences people..  can you try out for me something?’

Muthu ”what?”

James ”will they register themselves on gemini app for Rs100/-”

Muthu ”let me try..’

1 month later

James ”20000 families onboarded just because of you.. I managed to raise US$1M.. so am giving you back US$100K.. please return back Rs200/- to them”

Muthu ”Sir.. I will teach them Digital Literacy with 100 bucks and return back 100”

James ”cool…. our mission to Digital Literacy begins from now on.. training 20000 families”

Muthu ”I was assuming, I was an evangelist.. but you came up with so much of fiction.. I lost track.. however now I realized this whole drama of onboarding so many individuals in your scheme of piloting your startup”