- Build something that ‘someone’ wants / needs
- Talk to a lot of people who look like that ‘someone’
Startups ought to do this, but most don’t! I am not the first person to say this. Every worthwhile investor says this. Every successful startup seems to have done it. Every unsuccessful startup says they should have done more of it. At times failed startups thank ‘step 2’ to have failed quickly and learned a lot from it.
But even these days when I talk to founders, I find that they simply get distracted by the variety of inputs they get and lose focus on the above two actions. They make assumptions and build on imaginations. These kill startups.
So, if you are an entrepreneur – ensure you and your co-founders do the above two things religiously. It will help you and your startup in more ways than what a mentor or investor can do for you.
Don’t Think! Just Act now on the above two things.
Ola shut down Taxi For Sure – https://inc42.com/flash-feed/ola-shuts-down-taxiforsure
AskMe shuts itself down – https://inc42.com/flash-feed/askme-shutdown
Shutting down is part of the process of starting up. Whether you shut yourself out or you get shutdown by your acquirer, getting in and out of business is normal in the startup world. If you don’t have the gut to handle it, you must not play in this space.
I sympathise with the employees who joined in the hope that they will make a living. I think these individuals who are not ready for so much risk must avoid the startup world. Because one thing is sure, closure is going to take place at a larger scale than what we are seeing. The simple logic is that – as we increase the number of startups starting up, the number closing down is going to rise.
People who don’t like this ‘getting in and out of jobs and startups’ must find more stable lands – corporations, governments, family businesses, small and medium enterprises, etc. Sadly even these are not as stable as we view them to be! But they are way more safer than real startups.
It is important that people joining the work force be aware of this and then make decisions.
Sad but True!
Almost every Business Model Class speaks about Gillette’s excellent idea of what is now popularly known as the ‘Razor Blade Business Model’. So many companies have milked this model. Examples include: Camera Films, Mobiles, Games, etc
There are even examples of the ‘Reverse Razor Blade Business Models’. Example: Apple.
Here is a study from a professor (http://www.sciencedirect.com/science/article/pii/S0007681316000124) that questions if this model has lived its life and is facing its end-of-life. The study shows how the time has come for organisations to look at better pricing models. The environment in which we live today provides a lot more transparency and access. There are also institutional voids in emerging economies and Intellectual Property is not respected the same way as in the West. With so many new and changed forces, it is time for organisations to innovate with their business models and more importantly their revenue models.
Happy Reading and Happy Thinking!
While it may seem contrarian that ‘solitude’ catalyses ‘creativity’; it seems to have some validity.
While I believe that spending time with oneself is a powerful way to unlock your inner potential, I have never researched on this topic. But when I came across this wonderful write-up on the topic, I could not resist myself from sharing. ‘Is Solitude the Secret to Unlocking our Creativity?’ Link: http://observer.com/2016/06/is-solitude-the-secret-to-unlocking-our-creativity/
I spend a lot of time ‘walking’ and try to spend a fair amount of time in ‘solitude’. Both of these are getting more difficult. But almost every successful and happy person (the combination is rare) I meet increases my belief in both the above activities.
As entrepreneurs, you have a need to be actively engaged in social conversations. But you also need to disconnect from your company, industry, market and be with yourself. It provides you access to your original you. It is needed to help make that unique contribution that only you can provide.
Try it. It seems to me that ‘walking’, ‘solitude’ and ‘silence’ are also the pathway to happiness. Read more on this. Think about it. Reflect and Find out for yourself.
Be Creative. Be Entrepreneurial. Be Happy.
If you are not, its still ok! But, if no one around you is catching them, it signals a problem! While I have not caught Pokemons yet, many of my students are clearing them out from the Virtual World. They got me exposed to this!
No, I am not asking you, ‘teacher’, to play ‘Pokemon Go‘ but I am suggesting that you must keep yourself abreast of the quick developments taking place in the world of Virtual Reality and Augmented Reality. Be around people (students) who are catching Pokemon. Figure out what they are doing and help them decipher the deeper trends behind the fun. They will value it forever. Here is something that you can do as an entrepreneurship educator.
When you are teaching entrepreneurship, one of the key things is to help aspiring and existing entrepreneurs identify emerging trends / be alert to changes. This helps them either find opportunities or create them. All of this is futuristic. And one of these futuristic trends is – VR / AR.
To help your students / participants appreciate and explore this new world, you need to be exposed yourself. Even if you don’t catch Pokemons, you need to understand a little more of this emerging trend.
Here is a nice article to get you up the curve: https://www.insidehighered.com/news/2016/07/13/despite-hype-virtual-reality-still-years-away-making-difference-higher-ed?
Remember that this article provides you numerous pointers to identify opportunities around which million (possibly billion) dollar businesses can be built:
As an aspiring entrepreneur are you going to build one?
As an educator are you going to help one of your students build one?
Happy Reading, Happy Playing, Happy Imagining, Happy Entrepreneuring!
While there is a lot of hoopla around entrepreneurship the world over, two trends seem to be heating up:
- Reducing valuations of high growth ventures
- Slowing down of venture investments
I personally see this as a positive thing. Like all things in the world, entrepreneurship and associated investments go through ups and downs. During the ‘down’ phase there is a tendency for situations to become closer to normal. I think this is happening to this sector.
Reducing valuations is also good. This reduces the pressure on the entrepreneurs while also keeping valuation close to value creation (read more on the difference here).
I recently came across an article that spoke of the virtues of a possible decline/slowdown in Venture Capital (VC) Funding. Link: http://knowledge.wharton.upenn.edu/article/how-entrepreneurs-can-weather-the-drop-in-vc-funding/?utm_source=kw_newsletter&utm_medium=email&utm_campaign=2016-05-04
Think about it.
Most academics agree that their research reaches less people than it deserves. One of the reasons is that academic articles are not shared widely on social media. SAGE has created an interesting initiative called ‘Management INK’. It is a blog that shares interesting academic articles from the vast range of SAGE Journals. The editorial staff present a short review, and indicate its potential. I have been following this blog and enjoyed identifying useful articles.
Happy to share that ‘Management INK’ has reviewed and shared my article titled ‘Indian Entrepreneurship through a historical lens: A dialogue with Dwijendra Tripathi’. This article appeared in The Journal of Entrepreneurship Volume 25 Issue 1 (March 2016).
The article offers number of areas for further research in Entrepreneurship. Doctoral Students, Academic Researchers, Teachers and Policy Makers will find useful insights in this article.
DOWNLOAD PAPER FOR FREE! ‘Management INK’ and SAGE also allow a two week free access to the article on their blog. So, go ahead, download, read and use this article in your future research.