Startup India: Planning ṭo start own venture? Top 5 things to look at
Startup India: Indian millennials are foraying with innovations into the business venture creating their own startups.
Startup India: Indian millennials are foraying with innovations into the business venture creating their own startups. These startups can be in food, learning, conceptualising idea etc. Looking at the Indian youth's aspirations into the entrepreneurship, the Indian government introduced Startup India — an ambitious scheme of the Narendra Modi government that is aimed at helping emerging entrepreneurs to ideate new business idea and make way for new opportunities in Indian industry. However, when there is an opportunity, there is a threat also. So, it becomes important to do a SWOT (Strength, Weakness, Opportunity and Threat) Analyst for every new entrepreneur who wishes to start a startup.
Speaking on the top 5 works that an entrepreneur must do before incepting his or her own startup Sanjay Mehta - Angel Investor, Founder and Partner at 100X.VC said, "In today's world being a startup entrepreneur is glamorous." However, he said that before becoming the CEO by starting a company, founders should work on below 5 major things. These things will define startup idea success.
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Sanjay Mehta listed out the following top 5 works before incepting a startup:
1] Focus on One Core Product: No one can solve all the problems. Every founder has to learn to say no to opportunities which are outside of the core product idea. It is exciting to keep designing new product but building one core product at scale is tough and its a long-term journey. Founders should focus their energy, cash and time on making one product great.
2] Build Products that People Want: Get customers involved early so that the idea is validated. No one wants to build products that no one wants so the best way to build a product is to create a feedback loop with build-measure-learn. Also, do a dip stick on the market size so that it's evident that there is enough market demand for the product or service.
3] Hiring Talent is Difficult: There are two things that startups need to become a unicorn, a continuous flow of capital and talent. Event startups which have raised capital soon discover that attracting good talent on board is very difficult. First-time founder who has just embarked on entrepreneurship journey will find very hard to get people to work for them unless they have a well-defined impactful purpose. Founders need to get people to buy into their vision. Finally, hire talent which has complementary skills.
4] Be Prepared to Pivot: Most initial ideas don’t work. So founders need to be flexible and intelligent enough to realise it that they need to pivot. Pivot is all about changing the business strategy related business model, pricing, brand, customer profile etc. Note that pivoting is not a magic pill that will make the startup idea successful. Take time to prepare and then change the course of the business.
5] Selecting the Right Investor: Smart founders find a lead investor first who can anchor the fundraise and then get the passive investor to rally behind the lead investor to complete the round. While the colour of the money is the same but the results are different with every investor on board. Angel Investor will write a small check but gives more independence to founders. Venture Capitalist write a large cheque but would drive the business and founders for an exit. Family Office investor is a patient capital which beliefs in building a sustainable business.