Posts Tagged startup

What an Idea

Numerous questions have been asked on what’s the most important thing for a startup – team? idea? execution? investors, etc. Most young startuppers (fresh out of college) tend to romanticize the idea they have in their minds. They are on cloud nine when something strikes them and just can’t control their excitement – a belief that they have latched on to something big and the only thing remaining is developing the website and hosting it.

It’s good to aspire big (or) move on with a positive frame of mind, but the value of just an idea is cheap! Most of the startups have been started either because the founder himself has been affected by the lack of something (or) he/she is dedicated to give back something to the community.Everyone of us has an idea and everyone has got another way to simplify the existing processes.

Holding just an idea is equivalent to just seeing a beautiful girl. Everyone in the shopping mall would have had a look,the tougher/main part is not having a glance at the girl but asking her out for a date – in the startup scenario it’s not the idea that counts, but it’s execution.

The misconception that an *idea* is everything leads the startuppers to keep it to themselves (or share with their very very close buddies) and not discuss in public – why? the fear of someone stealing it! I have already mentioned the value of an idea :-) , still lets meet the types of people whom you can possibly bounce the idea with:

  • Budding entrepreneurs/entrepreneurs: Like how your girl is the most beautiful angel on earth, for each entrepreneur his product/company is *the* thing. He is definitely not going to drop his own project and start with your idea, for all you know he might think your plan is stupid! Infact, it’s a good thing to bounce your idea with like-minded people, they might provide valuable insights
  • CEO/CXO of a big firm in the same domain: He has 1001 things in his mind and 10001 clients to serve. He is not going to put a team and rip off your idea, there are already many products waiting in the queue. Again, he might provide you good tips and suggestions on how to proceed in your domain. Make good contacts & network, someday he might acquire you :-)
  • All iz well – the happy MNC guy: No way he is going to start! He is a happy guy with a good salary and a comfortable position. Again, its good to bounce it off with him, he might give some industry perspectives and if he/she has a lot of cash – potential angel ;)
  • Wannabe entrepreneurs: These guys just want to start-off something – maybe because they are bored of their day jobs, maybe they want their business card to say ‘CEO’, many more reasons. I am not sure whether discussing with them would help, but some of the guys in this category act as a very good devil’s advocate :-)

As Abhishek Bachan in the movie Guru says ‘Gurubhai se ladna, tho Gurubhai banke. Lekin gurubhai eki hai‘ (To have a fair fight with gurubhai, you need to become one. And there is only ONE Gurubhai!). It’s not enough for someone to copy your idea, they need to copy your mind, your execution, but there is only *one* mind like you! Bounce your idea with smart guys and start thinking about how to execute.

All the above are just to emphasize the fact that having an idea is *NOT* a big thing. You can copy the idea, but not the mind, not the execution and that’s the challenge for every startup. The mistake I made was, the idea can mask all other challenges that a startup undergoes – it’s good you have got a nice model, but think and move further.

Race on…

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Mythful Money

3 months into this startup world has taught me a lot of things – the way I work, the way I talk to people, the way I send e-mails :-) and most importantly the value of money. I haven’t taken any salary (yet) till now, and I travel mostly by buses however long the destination might be [even to Bangalore ;) ].

As I see the odd sticker on the bus which says “Rs.6K/month work just for 4 hrs/day” makes me realize the value of earning 6K/month. If I was so fussy about money, why am I spending hundreds on getting LFY, DARE, Entrepreneur magazines, buying geeky t-shirts at tshirts.in,getting my iPod replaced [not free!] – there is clearly an alternative to all the above I mentioned.

This has made me believe ‘Not having money‘ is a myth unless your bank balance is an absolute zero and the world is doomed with none around you! There are 2 important things I believe to acquire a customer

1. Pitch

I think a lot of people take this for granted. The pitch about your product is a key aspect on how far/deep you reach your potential customer. If you didn’t know, I have started a startup – interviewstreet.com where students can attend mock interviews conducted by working professionals on different domains.

It is generally not easy to make students understand the value of a service. Lot of people discouraged [and still] me saying ‘Abey, students don’t have money!’. A dinner with friends would cost them around Rs.250, a movie at a Multiplex with popcorn, etc would cost them around Rs.300, a night at the Wild West bar would cost them over Rs.400, 10 cigar packets cost Rs. 350 – clearly I won’t agree students don’t have money!

For certain confidential reasons, I can’t list down how my pitch improved, but I slowly realized that you need to put yourself into a student’s shoes and think if the offer is really compelling! My dream job pays me 6lpa, would I like to pay just Rs.350 to attend a mock interview improving my chances of striking the job? – this is not a pitch :-) , I am just trying to analyze!

For eg: if I were to tell you ‘Hey, I saw this headphones which were amazing,costs close to 20K‘, you would probably brush me away. But no, it’s true. The headphones you see below is the BOSE QC3 comfort [pitch: acoustic noise-cancellation, rechargable batteries, almost all the external sound is suppressed, etc..] headphones which costs Rs.21K in India! . Well if you are really thinking these are for the CXO’s, pause, I know two of my friends who have already bought this which is almost half their earnings per month (or) even more!

2. Quality of service

The 2nd important thing is the quality of your service. If your pitch is impressive but lacks quality when users try it out, it’s a bad sign! If not surprising your customers, at least remain true to what you pitched.

So, if people are ready to buy those BOSE headphones (or) take mock interviews :-) , it means that the pitch and the quality of service are both in sync and impressive.

Once you are able to achieve this, I think money would occupy the back seat and people would probably even save up money to consume your product/service. Put yourself in his shoes and see if the pitch, price and the quality-of-service/product is worthy enough. With this, I go back to surprise a few more of my customers who are in the queue! :-) . Bye!

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Entrepreneurship in love

As I was walking along the beautiful IIT-M campus yesterday evening, I bumped onto this inspiring entrepreneur who currently runs a startup in the education domain. I have met him earlier in a couple of events, but happened to talk to him only then. We kept walking, discussing various challenges in the life-cycle of a startup,how he solved, etc.. We kept walking for almost an hour when I thought it was time for me to get back home. Just before I took leave, (out of curiosity) I asked him about his educational background. He replied ‘I just completed my Masters in Entrepreneurship‘! What?! Is there a course M.S Entrepreneurship?! Sounded weird to me. I just nodded and left.

This thread kept running in my mind, difficult to kill (damn the geekiness!:)). I just questioned myself ‘What is entrepreneurship?‘. Entrepreneurship to me is a feeling – a passionate feeling towards your idea/product. It’s something that can *not* be taught in a classroom or can be studied from a textbook.

When you see a beautiful girl pass by, there is this sudden rush of energy,2 wires standing up,bells ringing on top of your head and nothing else visible to your eye! That’s exactly how an entrepreneur feels when he gets an idea! – can strike him anywhere, anytime, when he is taking a shower, or an evening stroll.

You cannot wait, but to gather more details about the girl. Is she from my college? How old is she? How can I impress her? Does she already have a bf? Is she an FCP? ;) . An entrepreneur does similar things – is a similar offering of my service already present? What is my USP? let me google for similar products like these, can i conduct a survey to see the response?

Once all these cobwebs are cleared out, your phone bills are on the rise! Message more, talk more, dream more, etc.. On the other side, you start off with the prototype, keep improving the design,dream about making the product really big, innovate and add new features, etc..

Now comes the D-day when you say those magical 3 words to your loved one and you are fully committed! On the other front, it’s just 2 words (I quit!) and it’s definitely not to your loved one! ;) . You are fully committed to your startup and its your life! And as the history says, ‘They happily lived ever after’ :) .

These thoughts occurred to me as I was on my way back home!. Now, don’t ask me an analogy for a serial entrepreneur ;)

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Adieu Amazon!

Yes, it’s true! Today will be my last working day at Amazon! I never expected it to be so quick (14 months) and never thought I would start something on my own after this! It’s been exciting,fun,happening,interesting,mindblowing – all in the same breath!

Why is it the *best* MNC to work for ?

  • Amazon has got the right mix of fun and smartness embedded in their employees, you have no other choice but to just admire.
  • The amount of visibility you get while working on a project is tremendous. I doubt any other company would have freshers directly interacting with top management people and principal engineers
  • Exposure to the latest technology from a wide variety of streams in Computer Science. You get to work on Distributed Systems, Databases, UI (CSS/HTML,Perl,Ruby), OS (Kindle), etc. At the end of the day you will have such a wide breadth of knowledge
  • Extremely customer centric and focused – *Never* do you see Amazon doing stuff just for the heck of it. Every project you are involved in, has its own USP and unless and otherwise it’s something novel, Amazon doesn’t put it’s step forward
  • Fun Atmosphere – Even though you can see a geeky halo at the back, you can talk to anyone about anything – T20, Sachin (vs) Sehwag, many more… There is absolutely no barrier to talk to people. I never imagined I would refer to my manager as Dude(always) :) and even give bumps on his bday ;)
  • Startup Flavor – You don’t work on a product for 2 years to see it’s release. The deadlines are little hard making you learn more and deliver more in quick time. C’mon there is a production push almost every week!
  • I am pretty sure you would have heard about the compensation and perks :) . Makes you wonder whether you are really worth that much!
  • Guess how they celebrated recession? – hired a whole bunch of SDE’s and formed a couple of new teams here! Have you ever heard Amazon firing people?
  • There would have only been 2 reasons why I could have possibly thought of parting from this organization.

    • To pursue my graduate studies
    • (OR)

    • To start my own startup.

    After pondering over deeply and consulting with a lot of senior people, I thought I should do justice to both my conscience and to Amazon. Hence, I have taken the bold move of starting on my own with my friends, and time will tell how it works!

    Altogether it was an amazing experience to work here. To explain my current position, its a very tough state to be in – you really love the job but still you need to go! At the end of the day, I would really really really miss the people out here and hope to stay in touch!

    I still remember when the HR sent me a pre-placement form during my campus recruitment. It said “Amazon is looking to hire superstars!”. I chuckled then, but I now realize, you guys are really superstars! I have worked hard, had fun and should be making history soon :) ! Good luck with all the projects,keep making Amazon proud and more importantly stay connected! (vivmbbs AT GMail)

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A Strange(r) entrepreneur

Not many times you get to meet a stranger and strike a conversation that lasts for slightly over 30 minutes and finally derive some inspiration out of it! Well, it did happen to me yesterday. My friend & I had some work on the ECR (East-coast-road). I hopped on to his bike, we would have hardly moved 2 km, when the back tyre got punctured! After walking a few metres, we found this un-puncture shop :)

He quickly got into his act. Busy fixing the tyre, he shot a question to me “What are you planning to do?”. I was taken aback a little, quite unsure as to what he was exactly asking and hence said “I am planning to start my own business”. He then shot back again “Do you know what business is?“. Little irritated, I wanted to say, it is a Web 2.0 application built on PHP and Java, but I just controlled my temper and thankfully let him speak! He started narrating about how he built his shop….

[Speaking from his perspective]

I started this shop 2 years back. I had no job then and none gave me any too. I decided to start a shop that would just sell tyres. I spent close to 6 months walking down the streets of ECR trying to find a place to start my shop. Everyday, I talked to 10 different people with just a single ray of hope that someone someday would tell me there is a vacant place you can use. Finally, the day came after a loong wait for 6 months.

My family being a little superstitious, wanted me to start the project after 2 months. Hence I paid 2 months rent for nothing. I started it after 2 months, bought all different types of tyres and waited for people. I waited..waited…waited… it was another 6 months and I did not get even a single customer! And I mean it – not a single customer. I was disappointed earlier that I had to pay rent for 2 months without using the place, but just imagine the situation that I was put in after 6 months!

I started analyzing the cause as to why this didn’t kick off. I went and knocked at each door in the ECR to gauge the market for a tyre shop, conducted a survey. Many people just shooed me away. Some even told me that they don’t possess any vehicle with a shining Merc parked in the front! This continued for another 6 months… Hence, I was effectively paying rent to this place for 18 months without earning a single pie. But, somewhere inside my heart, I knew I could fix the problem and come out.

I then decided to start multiple services and not rely on one! It was not just selling tyres, my shop did overhauling, fixed punctured tyres, and I am starting to run a service where I would recommend drivers for people here and ofcourse earn a referral fee, he chuckled! :D . The business slowly grew. Each customer came for different offerings and my shop became a commonly used word in the town – more to say, it’s almost a landmark here!

The name spread by word-of-mouth. I did my job to perfection and always stuck to my timelines. I would never do stuff that I was not sure about. If I take up, it would be real neat job! People were impressed with my work.Now, I am the Raja (King) of this area. Anyone who has any problem with their vehicle tyre, come to me. I am earning a good sum. I waited for 2 long years to get to this state.

[End of story]

I didn’t know what to say. It was really really inspiring! Never thought, I would bump into someone and be inspired so much. I could just relate a few things what he said to the startup world.

  • Perseverance and determination are the key factors! Try harder, be patient and you succeed. Never never give up!
  • Never rely on a single service/offering. If Google had just stuck to Search, I am not sure it would have reached the level it has now!
  • The 1st guy you approach is not going to be your client. You need to knock at each one’s door and be patient to get your client!
  • It’s ok to slip the deadline by a few days and give an impressive product rather than sticking to it and making a mess. The service should be of high quality for people to refer!

Phew! Great experience! :D

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Startup Frenzy #3: Are you ready for the VC?

Ok, now that you have built a good team and done enough of market research, can you approach the venture-capitalist? Ideally, my answer would be a big NO! I did this mistake back in college, when I used to meet a lot of VC’s with bare presentations explaining them what exactly my product is, my target customers, etc..  Like how A picture is worth a thousand words, A demo is worth a thousand dollars!

A demo is worth a thousand dollars

Build the product

You need to have a working demo of your product.The ppt’s and flashy animations alone will not impress them. Your product needn’t implement all your features (obviously), but at least a bare framework showcasing your service. You need to instill a belief in the VC that you guys can build the product. A coveted degree (like a Phd, Masters,etc.) might give you an edge only if you are able to build the product, not before!

KISS – Keep it short and simple

Your demo/presentation should NOT last for more than 5-6 minutes. It should be slick and to the point – no boring graphs and long text! The VC must be raring to know more about your product after you are done.

Numbers and vision

More than the technology, a VC would be interested to know how much (and how?) you are going to make money. Here is where you can afford to be a little verbose, explaining your surveys, your initial sample set, how you intend to grow, your projected revenue, etc.

Most importantly, you need to have a vision for your startup – what do you want to ultimately be? and what’s the roadmap.

Well, whatever I have blogged is from my past experience and mistakes that I made. Hope it helps and get started! :D

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Proto.in prototype.out

You would have easily guessed what this post is going to be about. Yes, I had the opportunity to attend the recent edition of proto.in and awesome would be an understatement! It started off with Mr. Atul Chitnis talk on how to run successful business. There two important points he stated

Assume connectivity

Always think ahead when building your product. Today is history

Following this was Start-up showcase where each team were allowed to present their ideas for 6 minutes. I was very impressed by a couple of start-ups – Lifemojo, indiakhelo. The ideas were really innovative and well implemented.We had a twitter contest going on and I tweeted like crazy from hari’s account :-) .  Sadly though, there were many more crazier people like me :-) .

Post-lunch, there was an interesting talk by Paul Allwin founder and CEO of paagalguy. A Wharton grad, had interesting insights on the concept of a co-founder.

Don’t go in search of a co-founder for the heck of it. You can manage business on your own!

He gave some interesting facts about the crores of revenue this site generates through advertisements and how the attrition rate is less than 1%. A great talk! He had an interesting comment on his marital status :-)

I don’t think, I will get married. Every time, my mom tells the bride’s family “My son runs a site named paagalguy!!  and you know what the result is :-)

That was pretty much the interesting part of Day – I.

The 2nd day had better events than the 1st. It started off with Mr. Bob Young’s speech – co-founder of Red Hat Linux, founder of Lulu.com. The talk had a great mix of humor,satire,advices, etc.. Everyone in the auditorium really enjoyed the 1 hour that passed by.

The Start-up showcase wasn’t that great compared to Day I. I can’t even think of any innovative start-up. Start-ups like remindo, fachak looked like an ‘old wine in a new pot‘.  The other talk which was particularly interesting and very much applicable to me was ‘Fresh Out of College or Experienced – before making that leap‘. It was given by two young very inspiring entrepreneurs – Rajiv Dinghra ( WATBlog) and Dravid (theviewspaper.in). These two really instilled the belief and faith that if you really want to do something, you can do it! I had the opportunity to talk to them personally after the session, and they were truly inspiring!

However, the most important thing that came out of this event was the fact that I got to know truckloads of people from different backgrounds who shared their experience about how they started off their startup and the challenges they faced.  I met the co-founder of letzknow and guess what – he is a 3rd year student in Amrita! I love these people who do what their heart says! I had an opportunity to meet Freeman and talk about tech entrepreneurship, incubation centres, etc. Hoping to meet him soon!

Everyone were given a badge which had their name and the company they belonged to. For some reason, I did not want to disclose my company’s name and hence filled the field as ‘Undisclosed‘. My badge looked like ‘Vivek Ravisankar,Undisclosed‘  :-) . Many people thought, I was running a start-up and I did not want to disclose about it!

On the whole, the 2 days were real fun and I enjoyed the show to the max! It was a stud event, well organized with a good set of speakers. Proto.in rocks!

PS: A bigg thanks to Susa, hari and wally for helping me find my way in Blore. You guys also rock! :)

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