The world is changing and so is the way to shake hand with entrepreneurship. Every now and then ,the new start-ups mushroom in avalanche and they pass bye, some even remaining unheard.
So, What are the nuts- and- bolts in the start-ups which, if not tightened properly or if overlooked for a bit longer, bring down the entire start-up?
Before I go further, I must say that ideas are not invited , they come themselves. So, If you are looking for an entrepreneurship just for the heck of it , or just because someone you know has proved his mettle in this, and thus the game will be indifferent to you too - then you are at blunder at very first step.
The journey of entrepreneurship begins with blood bath and the tree of your start up is laden with fruits only after significant time and enormous toils.
Further, It's always easy to make a business plans (students in schools and colleges frequently make them), but those plans are very much different from the plan life makes.
Let me try to put in black & white the common mistakes that a first time entrepreneur does quiet often and the suggested plot on each.
1. Obsession for 'new ideas'
Often the budding entrepreneurs wait for some 'new ideas' to arrive. They think that the existing tasks are monotonous ones and one need to be 'different' to be successful.
But actually, It's not that you have to dream of something that nobody has ever done. All the best ideas have been done by others. You need to the two things :
One , we need to do better than the guy who got that idea. And, Second, you need to scale those ideas up.
2. Lacking Passion and Courage
Most of the new start-ups are tried by the people who simply 'emulate' someone they know as successful entrepreneur. The inspiration is okay but simple 'copy-cut ' ruins them to failure only. They lack passion for the thing they do.
Though it's difficult to recognize the thing aptly . But, If you are not passionate about what you are doing, then you are in wrong place.
Also, Passion cannot come without some knowledge around it . But there is no one size that fits all. You can always hire people with expertise.
Follow your heart. (The brain can do many things, but only the heart can answer the meaningful question of life!)
Second is Courage. You have to make choices. and you have to be comfortable with the choice even if it goes wrong. Don't think unnecessarily . When you succeed , all your past and failures get wiped away.
3. Money matters
New start-ups always need sufficient money to stand on . Most budding entrepreneurs wrongly understand this money factor. They think that they need huge amount to survive in the race.
In fact , What you need at the start-up stage is some seed funding.You just want enough money to prove your idea. For finance a start-ups , more than VCs, an entrepreneur needs an angel. That can come from friends, family. VCs should ideally come in once you know what you want.
4. Lack of relationships.
Many new entrepreneurs have a precocious thought that it is the intellect or ability ALONE that can make them successful .
But, the battles on the ground can be fought and won in ground only . RELATIONSHIPS matters a lot Intellect and ability are important in life. But relationships are even more important.
Don't lose the grip of contacts you have already and look for more contacts from wheresoever . It may appears that you don't need many people in short span of time, but you need them at the times all of sudden.
5. Complex and Comfort zones
Many people hesitate to work with someone who is better than them. The one of the reason may be the inferiority complex, while the other can be ego-clash .
Come out of this 'Cocoon ' world and self defined boundaries. You can define boundary walls for your start-up only , but in open competition you are no one. So why hesitations?
It's all about people - hire the best folks in the business. Don't hesitate to hire people better than yourself in the specific area.
Colleagues who challenge and make you feel uncomfortable are your best friends and the ' yes men' are your worst enemies!
6. Partnership Problem
In start-ups the partnership with equals is more harmful than useful . You are not marrying but running a business.
Never have equal partners. You start off as equals , but then one does more, one does less , one is the public face, the other is not , and then slowly the whole thing disintegrates.
Also, there shouldn't be too many partners. Two or four partners is okay, but ideally not more than four.
7. Timing
Sometimes everything remain fine , but the start-up collapse. You have some idea, angels to invest, good contacts everything, but all the ideas are not fit for all the times. One need to understand this.
Let's say you have such an idea or insight. But it does not work right now, perhaps it is ahead of its time. Keep it, at the back of your mind.
As the environment changes, as the technology changes, you might be able to 'join the dots' to connect different pieces of the puzzle and bring your concept to life.
8. Fear of Stealing the Ideas
Ideas are never stolen . Don't worry for this and disseminate it to many people before you execute. Anyways, If someone will try to copy your idea , he will simply commit suicide as he would not have same amount of information and passion as you have.
All I insist that,whenever you have a good idea, write a note , circulate it , show it to people, get their thoughts and reactions.
9. Thinking too much
Budding entrepreneurs think too much and act considerably little. Though thoughts are required as there are many things at the stack while you go for the start-up. But , just thinking will ruin you with so many doubts.
As I already told in the beginning that your business plan is not necessary same to the plan the life makes. So, you can't do many things just by thoughts.
Don't just think about it , don't just wish for it , jump into it and do it, if you are really serious.
Once you get into it, go all out, never look at quitting as an option.
Remember that if the start-up fails, it is your idea that failed, not you.
10. Lack of Fun
People think that more they will work , more successful will be their start-up.
Start-ups require sweating to some extent but, fun with the work is quiet important . One can't proceed with same pace all the time without turning 'monotonous' .
If you don't laugh enough, your business model is probably wrong. If you think you will enjoy after being successful, I am putting this to you ( I read somewhere)
11. Fear of Failure
Many and in particular young entrepreneurs are to much afraid of failure . Sometimes they add their work with their ' reputations' and are worried. Sometimes they think of repayment in case they fail.
But, Start-ups cannot be successful in the background of failures.
There is no such thing as a failed entrepreneur. You are failed entrepreneur only when you quit. Until then you are simply not successful YET.
Note : I published this article on Quora too.
Courtesy : Stay Hungry, Stay Foolish & Connect the Dots by Rashmi Bansal.
So, What are the nuts- and- bolts in the start-ups which, if not tightened properly or if overlooked for a bit longer, bring down the entire start-up?
Before I go further, I must say that ideas are not invited , they come themselves. So, If you are looking for an entrepreneurship just for the heck of it , or just because someone you know has proved his mettle in this, and thus the game will be indifferent to you too - then you are at blunder at very first step.
The journey of entrepreneurship begins with blood bath and the tree of your start up is laden with fruits only after significant time and enormous toils.
Further, It's always easy to make a business plans (students in schools and colleges frequently make them), but those plans are very much different from the plan life makes.
Let me try to put in black & white the common mistakes that a first time entrepreneur does quiet often and the suggested plot on each.
1. Obsession for 'new ideas'
Often the budding entrepreneurs wait for some 'new ideas' to arrive. They think that the existing tasks are monotonous ones and one need to be 'different' to be successful.
But actually, It's not that you have to dream of something that nobody has ever done. All the best ideas have been done by others. You need to the two things :
One , we need to do better than the guy who got that idea. And, Second, you need to scale those ideas up.
2. Lacking Passion and Courage
Most of the new start-ups are tried by the people who simply 'emulate' someone they know as successful entrepreneur. The inspiration is okay but simple 'copy-cut ' ruins them to failure only. They lack passion for the thing they do.
Though it's difficult to recognize the thing aptly . But, If you are not passionate about what you are doing, then you are in wrong place.
Also, Passion cannot come without some knowledge around it . But there is no one size that fits all. You can always hire people with expertise.
Follow your heart. (The brain can do many things, but only the heart can answer the meaningful question of life!)
Second is Courage. You have to make choices. and you have to be comfortable with the choice even if it goes wrong. Don't think unnecessarily . When you succeed , all your past and failures get wiped away.
3. Money matters
New start-ups always need sufficient money to stand on . Most budding entrepreneurs wrongly understand this money factor. They think that they need huge amount to survive in the race.
In fact , What you need at the start-up stage is some seed funding.You just want enough money to prove your idea. For finance a start-ups , more than VCs, an entrepreneur needs an angel. That can come from friends, family. VCs should ideally come in once you know what you want.
4. Lack of relationships.
Many new entrepreneurs have a precocious thought that it is the intellect or ability ALONE that can make them successful .
But, the battles on the ground can be fought and won in ground only . RELATIONSHIPS matters a lot Intellect and ability are important in life. But relationships are even more important.
Don't lose the grip of contacts you have already and look for more contacts from wheresoever . It may appears that you don't need many people in short span of time, but you need them at the times all of sudden.
5. Complex and Comfort zones
Many people hesitate to work with someone who is better than them. The one of the reason may be the inferiority complex, while the other can be ego-clash .
Come out of this 'Cocoon ' world and self defined boundaries. You can define boundary walls for your start-up only , but in open competition you are no one. So why hesitations?
It's all about people - hire the best folks in the business. Don't hesitate to hire people better than yourself in the specific area.
Colleagues who challenge and make you feel uncomfortable are your best friends and the ' yes men' are your worst enemies!
6. Partnership Problem
In start-ups the partnership with equals is more harmful than useful . You are not marrying but running a business.
Never have equal partners. You start off as equals , but then one does more, one does less , one is the public face, the other is not , and then slowly the whole thing disintegrates.
Also, there shouldn't be too many partners. Two or four partners is okay, but ideally not more than four.
7. Timing
Sometimes everything remain fine , but the start-up collapse. You have some idea, angels to invest, good contacts everything, but all the ideas are not fit for all the times. One need to understand this.
Let's say you have such an idea or insight. But it does not work right now, perhaps it is ahead of its time. Keep it, at the back of your mind.
As the environment changes, as the technology changes, you might be able to 'join the dots' to connect different pieces of the puzzle and bring your concept to life.
8. Fear of Stealing the Ideas
Ideas are never stolen . Don't worry for this and disseminate it to many people before you execute. Anyways, If someone will try to copy your idea , he will simply commit suicide as he would not have same amount of information and passion as you have.
All I insist that,whenever you have a good idea, write a note , circulate it , show it to people, get their thoughts and reactions.
9. Thinking too much
Budding entrepreneurs think too much and act considerably little. Though thoughts are required as there are many things at the stack while you go for the start-up. But , just thinking will ruin you with so many doubts.
As I already told in the beginning that your business plan is not necessary same to the plan the life makes. So, you can't do many things just by thoughts.
Don't just think about it , don't just wish for it , jump into it and do it, if you are really serious.
Once you get into it, go all out, never look at quitting as an option.
Remember that if the start-up fails, it is your idea that failed, not you.
10. Lack of Fun
People think that more they will work , more successful will be their start-up.
Start-ups require sweating to some extent but, fun with the work is quiet important . One can't proceed with same pace all the time without turning 'monotonous' .
If you don't laugh enough, your business model is probably wrong. If you think you will enjoy after being successful, I am putting this to you ( I read somewhere)
Don't defer your joy at a beach today , for some imagined future weekend in Acapulco - by the time that happens your diabetes may not let you enjoy the pina colas.
11. Fear of Failure
Many and in particular young entrepreneurs are to much afraid of failure . Sometimes they add their work with their ' reputations' and are worried. Sometimes they think of repayment in case they fail.
But, Start-ups cannot be successful in the background of failures.
There is no such thing as a failed entrepreneur. You are failed entrepreneur only when you quit. Until then you are simply not successful YET.
Note : I published this article on Quora too.
Courtesy : Stay Hungry, Stay Foolish & Connect the Dots by Rashmi Bansal.
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