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Startup
Guide
 Have
a big idea? Dreaming of ‘Kab Banega Crore pati’?
Driving down the road…and flash! You hit upon an idea that
could change the world. An idea that will put you into the annals
of history as a pioneer…but how and where do you start? I’ll
help you find out.
Having
what it takes
To
find a place in the sun, jungle law applies!
Have you ever wondered what is the difference in being a mere
'start-up' and a successful one? While pundits try to answer this
million-dollar question, Amar Bhide of Harvard Business School
and his 20 years of research have something
to tell.
What
archetypal entrepreneurs step out with
The
idea does not have to be 'brand new'. Successful entrepreneurs
use existing ideas after working on them for improvements that
add value to the customer.
They
also believe that their venture is money spinning, and this attitude
helps serve the customer better. Entrepreneurs who make it big
also have exceptional interpersonal skills that endear them to
their customers.
The
risks involved
The best entrepreneurs prefer to tone down innovation and
not to take on excessive risk as their capital is initially low-budgeted.
The
tolerance of ambiguity plays a big role, as most entrepreneurs
are not aware of the proportion of the risk involved. This tolerance
goes along with the absence of a 'novel idea' and lack of a sound
financial backing. The risk takers If they don't have a proprietary
idea, capital and innovation, then what makes them tick? It is
the product that the company has to offer that finally clinches
the deal. Successful start-ups sell directly to the end-user,
not through retailers.
Hence
the entrepreneur is able to tailor products to meet customer needs.
The success of the entrepreneur depends largely on convincing
the customer to try his product. This takes a lot of creativity
and strategising in order to breakthrough brand loyalties.
The risk takers
It
is the customer who actually takes the risk as he spends time
and money as well as switchover costs (if the start-up goes out
of business). In many cases, investors who fund start-ups also
take risks by providing capital at an early stage in the venture.
The
risk progressively increases after the start-up is established,
as there is much more at stake and risk-taking becomes important
at this stage.
In
a field that is conducive to success
A field that is changing rapidly will provide enough scope for
entrepreneurial success, provided start-ups take advantage of
it. The computer and IT industry are classic examples. Start-ups
will also benefit in a field where end-users are not very clear
about what they can expect from the product.
Competition
(or rather the lack of it) helps entrepreneurs. If consumers are
not able to compare and contrast similar products or vendors,
it is easier for the entrepreneur to make his presence felt.
It
is wiser for an entrepreneur to introduce his product on a smaller
scale, so that the product can be fine-tuned. Once it is perfected,
the product can then be launched on a larger scale. If it fails
to make a mark, the entrepreneur should continue to perfect it
by finding better ways and new technologies further improve the
product.
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