Want To Startup! : Here’s Why Here's How

I am excited and anxious reading about the variety of Startups. I read somewhere (I think it was in the WSJ) that only 10% Startups succeed, while the rest fail. Gotto say, that’s quite demoralising.... but...
That said, it’s important to understand why Startups fail….. Have you noticed, that now-a-days every Tom, Dick and Harry (pun intended) believes that they can Startup a venture and get funding…. It’s easy, they think?! Well, atleast till such time the question about raising funds hits them. Well, the simple fact of the matter is, that there is a lot more to it than just having an idea, dreaming about a concept or making a cool looking website. So what does one do? For one, those who ventured into the Startup world driven by passion, perseverance, self-belief, doing their homework, don’t get disheartened, you have worked hard, so don’t lose hope…. but then again, the going gets tough as you start to grow. So Buckle Up!
Sometimes a good concept that has hit a wall needs mentoring and to a large extent tweaking the biz model, to make it sellable, scalable and acceptable. I must also add, that it’s not as easy as it sounds, believe me. But there is hope…, it’s true! The good news is that there are several people out there, who can help. As you grow, they grow with you – financially and organically. Such folks are what we call mentors, angels, advisors, partners…..

You move forward, make mistakes, learn, change and then repeat... Shane Barker (Co-founder, Modera)

I often hear many Startups don’t know how to get access to funds, investors and don’t know how much money is ‘good enough’. Funding is one of the single most common challenge Startups face now a days (true historically and perhaps will continue to be so in the future as well). Savvy investors are a dime a dozen, but not all are easily impressed (well, I don’t think anyone is easily impressed now a days, so I take that back). Sometimes, tech Startups get created just because there seems to be ‘easy money’ in the business - this is the single biggest misconception many founders or aspiring Startups have. They fail because they are in it for the wrong reason…. it’s as simple as that, so it’s difficult to sugar coat this. This realisation comes when they face investors and their concept is hammered down as they have not thought things through. Simply put.

Sweat Equity Is The Best Startup Capital”… Mark Cuban (HDNET)"

Alright, enough of pessimism and time to talk about some simple ‘gotto do-this to Startup’ pointers. Remember the ‘Who, What, Where, Why, When, How...’ questions. Once you have answered them about your concept and you are satisfied*, here are some more hurdles to cross. (*well hang on, you need to first quantify your own level of satisfaction)…. Now, if that’s established, read on….

1. Identify and size the problem:
Not just identifying it, you need to quantify this problem with statistics. You need to know your numbers and target market size.

2. Concept:
Build solutions around this problem – turn it into a concept, which can be marketed and easily adopted. I have also heard, that many Startups struggle to convert their concepts into websites as building a website needs specific expertise. Though it is advisable to build this inhouse, to demonstrate internal technical problem solving capabilities. That said, you can always create conceptual websites on various platforms (that are free OR can be purchased through Weebly, Wix etc.) OR you could even hire freelancers (through freelancer, elance etc). However, if you can’t build it inhouse, you can always hire someone. But by NO means, should this be a road block. I mean seriously!! For eg. payment’s can be made progressively or perhaps through some sort of equity offering to the designer or design-company, if the need really arises.

3. Team:
This is another BIG hurdle. Need for a partner, finding the right partner or co-founder can make or break your Startup. So try to find ‘like-minded’ people, who understand the problem, share the same passion, drive and determination, who believe in the concept and that others will too (looking objectively and not just financially). Partners or Co-founders should come with specific skillsets or with bags filled with bling bling ($$$)! Besides likeminded people, who I call ‘Good Cops’, you also need ‘Bad Cops’ who ask tough questions, punch holes in your concept and can look at things through a different kind of glass. Keep these people close as you trudge along… they will help you ride through obstacles and yes… May the force be with you Luke!

4. Implementation and Scalability:
Now comes the real challenge. The ones who can implement their dreams, concept objectively usually create high barriers of entry for others. Speak to as many people (a sort of target audience) as you possibly can, to get new perspectives. Once implemented, ask yourself can this concept be scaled? If yes (and I am guessing the answer is Yes, then you need to demonstrate a road map on how you will achieve this). Its ok, if it means taking small steps…. so long as it takes you forward.

5. Funding:
Like most businesses drivers, this is the biggest requirement for driving the above. So here is a magical insight - if you ‘truly’ believe in your Startup – ‘Be the one to fund it yourself first’. I mean think about it – if you or say your friends or family can’t put money behind you, your concept, what makes you think investors will? Another option is to pitch your concept to various angels, investors in VC open houses or through incubators - Jungle Ventures, JFDI or mentoring programs such as Startup Leadership Program.... and see how it goes. Pitch, Pitch and Pitch some more! If everything else fails, go Rob a bank if you have to…… No Wait! That would be really foolish.
But mark my words! At an inception stage, your biggest investors, supporters are your family, friends and your bank balance. No one else knows and can support you better. Plus, why dilute your equity at an early state. Well, if you must, then aim to be that 10% Startup that becomes a success and satisfy all the above parameters. But first, identify that ONE problem and find a simple yet innovative way to solve it and success, money will follow.

If there’s something you want to build, but the tech isn’t there, just find the closest possible way to make it happen”… Dennis Crowley (Co-Founder, Foursquare)"

Onward and Upward Fellas and Remember 'Enjoy The Startup Experience' !