Daily Post 1233
STARTUP BUSINESS MODEL?
Is funding at the centre of a start up crisis? At the core of it all is that every business idea needs to be funded. It’s corollary is if funding happens the likelihood of its success is near hundred percent. Business loans seems to have become an outdated concept. Somewhere is the whole model financial liability is tried to be evaded. The concept of organic growth unfortunately is lost in the process as a liberal funding would help you scale way beyond your imagination and your capability to control.
The red carpet being rolled out for the startups from incubators, contests, govt. funding, special concessions both public and private are there to provide them what they desire. India has been transformed into Startup India. Most of last generation startups have grown without hardly any funding. The Google or our very Indian Infosys story is no different. Why startup / entrepreneurship is not treated as a normal business is for two reasons?
These enterprises intend to find solutions to some real world problems through the products they create or management process they invent. The new process should be an improvement of at least 10X. If the business idea is tested on these counts how may of our startups would clear the test. The harsh reality of startup being a business is not appreciated by those who have to gain by it. It is believed that business acumen would be beaten by the tech expertise, that has never happened and will not happen.
The human relations remains another story given their age. The dreams overshadow the harsh realities. Funding takes precedence over fructifying the idea. The hiring of freshers at exorbitant packages enabled by funding has its own story. A whole ecosystem gets created out of the liberal funding model; of consultants, coaches and mentors at a hefty price. Cracks are visible end to end. All the largesse is not delivering.
WHO WILL DECIDE THE REAL WORLD PROBLEMS TO WHICH PRODUCTS SHOULD BE ADDRESSED.