Entrepreneurship – The most preliminary thought framework.
In India, there are two ways which see entrepreneurs emerge:
– A traditional need driven entrepreneurship where an individual or a group of individuals start a venture to generate livelihood, they are not typically possessive about the kind of work they will be doing, but explore an array of possibilities. Personal disposable Income with a low gestation period is an utmost priority while Operational hazards & profit margins typically dictate the final choice among the option. For example, a group of technicians evaluating to start among a mobile repairing shop, a white good repairing shop, or a Mobile sales shop.
– Idea driven entrepreneurship. Here, the entrepreneur aspirants are too intrigued by the idea, and they mobilize their energy around feasibility of the idea, attractiveness of the idea, etc. They are largely group of very enthusiastic individuals, who in most cases, ready to delay personal financial rewards but yearn to make that idea successful. For eq. An idea of small Micro social networks for housing colonies, where each colony has now 2000 flats & 8000 inhabitants. This is a large enough pool for people to interact among themselves, share local information, exchange services (like lawyer helping a dentist and vice a versa).
While the First one has been the backbone for entrepreneurship in India for last 50 years, the modern generation typically belongs to the latter. This might be institutive as most of the youngsters who startup their venture come from middle class families or upwards, are still in the nascent years of their professional lives, and their primary source of family income still prevails. This allows them to delay their personal income, invest time in the idea and try to catch a big fish.
While they demonstrate education, passion and exuberance, they often are often driven just by the idea, without much of validation for the same. For a successful venture, idea is only a small part of it (in most cases). Neither Google in its time was a Very brilliant idea, or YouTube. While they were making Google, There were many other popular search engines – Yahoo, MSN, AltaVista, AOL. Initially, people dwell on their idea to an extent that they are too cautious to even discuss their idea, under the threat that someone might steal it. The most reality check is most of the “brilliant” ideas struggled to get even the first penny of funds, which later turned out to be a bomb success. No idea (absolutely none) is actually that great an idea that will make some sitting on a couch, listening to it, jump up and just start working on it the next day. Everyone thinks he has ideas, and that same person doesn’t have time, funds or resources to work on his own ideas, where would he ever get the same to work on your idea. So, please don’t get very possessive about your idea. A youngster needs to bounce the same with as many people he comes across with a few exceptions.
An Idea is always comes with few riders – context, timing, feasibility and implementation.
• Context- where did the idea come from? Why is it relevant to you? Why you are the best person for this idea?
• Timing – Why is now the right time to develop on the idea?
• Feasibility – What is the market for the idea? Are their takers for it? What is the economics behind the idea?
• Implementation – How will you do about creating the product? How will you reach to your buyer? How will you promote the idea?
This is typically the “implementation” which is stumbling block for all new ventures. Rest all are Paper Tigers. 90% of ventures, which fail, fail not because their idea was bad or their idea failed. They fail because they could never give their idea a fair chance in the market. In short, the Execution failed.
This is the mantra of starting a new venture.
The best way to go about is to bounce your idea with as many people as possible, take clear note of all the hassles/challenges involved in the implementation. Clearly Plan your finances, before you step in. Again thumb rules says, More than 50% of idea/ products never get a chance in the market because finances collapse midway. Once the entrepreneurs start spending a sizeable amount of energy chasing utility bills, and other day to day expenses, that’s the starting of the end of the venture.
One of the most important points which will obviously be re-emphasized later on is People. For the first 6 months, atleast 60% of work needs to be done by the partners (or the founders) themselves. You need to plan your team accordingly. Ventures who start of under the impression - employees will do most of the work – rarely succeed, unless they have very deep pockets.
In all , A entrepreneur needs to be candid about his idea. He cannot go overboard with the creativity or innovation in the idea. He needs to accept the challenges, criticisms, or irrelevance of the idea with an open mind. He needs to clearly evaluate whether this idea is for him or does he have people for the idea ? These people are co – founders not employees in most cases.
– A traditional need driven entrepreneurship where an individual or a group of individuals start a venture to generate livelihood, they are not typically possessive about the kind of work they will be doing, but explore an array of possibilities. Personal disposable Income with a low gestation period is an utmost priority while Operational hazards & profit margins typically dictate the final choice among the option. For example, a group of technicians evaluating to start among a mobile repairing shop, a white good repairing shop, or a Mobile sales shop.
– Idea driven entrepreneurship. Here, the entrepreneur aspirants are too intrigued by the idea, and they mobilize their energy around feasibility of the idea, attractiveness of the idea, etc. They are largely group of very enthusiastic individuals, who in most cases, ready to delay personal financial rewards but yearn to make that idea successful. For eq. An idea of small Micro social networks for housing colonies, where each colony has now 2000 flats & 8000 inhabitants. This is a large enough pool for people to interact among themselves, share local information, exchange services (like lawyer helping a dentist and vice a versa).
While the First one has been the backbone for entrepreneurship in India for last 50 years, the modern generation typically belongs to the latter. This might be institutive as most of the youngsters who startup their venture come from middle class families or upwards, are still in the nascent years of their professional lives, and their primary source of family income still prevails. This allows them to delay their personal income, invest time in the idea and try to catch a big fish.
While they demonstrate education, passion and exuberance, they often are often driven just by the idea, without much of validation for the same. For a successful venture, idea is only a small part of it (in most cases). Neither Google in its time was a Very brilliant idea, or YouTube. While they were making Google, There were many other popular search engines – Yahoo, MSN, AltaVista, AOL. Initially, people dwell on their idea to an extent that they are too cautious to even discuss their idea, under the threat that someone might steal it. The most reality check is most of the “brilliant” ideas struggled to get even the first penny of funds, which later turned out to be a bomb success. No idea (absolutely none) is actually that great an idea that will make some sitting on a couch, listening to it, jump up and just start working on it the next day. Everyone thinks he has ideas, and that same person doesn’t have time, funds or resources to work on his own ideas, where would he ever get the same to work on your idea. So, please don’t get very possessive about your idea. A youngster needs to bounce the same with as many people he comes across with a few exceptions.
An Idea is always comes with few riders – context, timing, feasibility and implementation.
• Context- where did the idea come from? Why is it relevant to you? Why you are the best person for this idea?
• Timing – Why is now the right time to develop on the idea?
• Feasibility – What is the market for the idea? Are their takers for it? What is the economics behind the idea?
• Implementation – How will you do about creating the product? How will you reach to your buyer? How will you promote the idea?
This is typically the “implementation” which is stumbling block for all new ventures. Rest all are Paper Tigers. 90% of ventures, which fail, fail not because their idea was bad or their idea failed. They fail because they could never give their idea a fair chance in the market. In short, the Execution failed.
“Idea is fancy, Execution is GOD”
This is the mantra of starting a new venture.
The best way to go about is to bounce your idea with as many people as possible, take clear note of all the hassles/challenges involved in the implementation. Clearly Plan your finances, before you step in. Again thumb rules says, More than 50% of idea/ products never get a chance in the market because finances collapse midway. Once the entrepreneurs start spending a sizeable amount of energy chasing utility bills, and other day to day expenses, that’s the starting of the end of the venture.
One of the most important points which will obviously be re-emphasized later on is People. For the first 6 months, atleast 60% of work needs to be done by the partners (or the founders) themselves. You need to plan your team accordingly. Ventures who start of under the impression - employees will do most of the work – rarely succeed, unless they have very deep pockets.
In all , A entrepreneur needs to be candid about his idea. He cannot go overboard with the creativity or innovation in the idea. He needs to accept the challenges, criticisms, or irrelevance of the idea with an open mind. He needs to clearly evaluate whether this idea is for him or does he have people for the idea ? These people are co – founders not employees in most cases.
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