5 realities Indian entrepreneurs have to face to be successful
Globally, startups have become more diverse and abundant. There is an ecosystem that has been under creation over a decade and now seems to be working in a seamless order now with a heavy machinery of experts, venture capitalists and successful entrepreneurs mentoring the newcomers and backing the bright ideas.
Beside the risk bearing attitude of a millennial generation today, innovation and technology is further fuelling the ecosystem. Globally, it is estimated there are over 100 billion dollar startups that have seen valuations going up right from their seed stage.
India’s business skyline boasts of several startups, some around 200 last year. The World Bank and the IMF had forecast that India will outpace China's growth in 2016-17 after a robust 7.5 per cent expansion in the October-December quarter last year. Despite, estimates reveal that for every hundred new ventures, at least 90 per cent fail and there are factors other than just idea turning into a trash.
It is important to understand some realities associated with being an entrepreneur and eyeing success. This forms an essential character of a business owner to understand the practical aspects and expect what is reasonable and possible within the given realms of running or thriving in an industry.
5 realities Indian entrepreneurs have to face to be successful:
1. Passion for business: Unless you have passion for your product or service, that you think will prove beneficial for your target audience, do not jump into it. You may be a bright person brimming with ideas all the time and a sudden gush of energies and vibrations of your mind would have lead you to arrive at the brightest of the idea to start a venture around. But what makes the idea unique and workable in the longer run is the self conviction that it will keep you hooked for many years to come. If you are good at it, it will start showing gradually. Workmanship is a reflection of passion, creativity and persistence.
2. Product or Customer focus: Make up your mind as to how you may need to position your company’s offerings, around the product or around what customers may need. The focus on former may need a different set of marketing mix where pricing also goes hand in hand, while in the latter it is more about place and promotion and experiential marketing takes a lead.
3. Tenacity despite failure: In India, the culture of entrepreneurship is not so strong and apparently still evolving. Hence, impediments may, at times, appear discomforting, try accepting them with grace. It may be a tough thing to do but you may get the hang of it gradually. There are times when receivables are delayed; you need to up your patience and happy quotient and try sorting things out in your favor.
4. Uncertainty is certain: The business environment is vastly unpredictable and you may not be exposed to it before the actual start of the venture. Business terrain may appear different than your earlier professional role in a certain industry vertical or for right away business starters it may look like a blank slate. Do keep in mind, to run a business, you may need to have a bird’s eye view to manage all spheres or operational and managerial functions Budgeting and planning may also be required of you. In a startup world there is almost no time to upgrade, things move really fast. Entrepreneurs need to have a practical understanding of commercial sense of running a business, there is a need to hold flexible mindsets towards workmanship, skills to be acquired and self-training.
5. Its alright if you fail, but avoid if you please: If a strategy or a work plan or a roadmap fails, learn from it, fast, try avoiding too many mistakes too soon. It will be a good idea to surround yourself with some industry experts and coaches, who have had their own journeys and indpeth experiences to share and add value. There are different skills the founders or promoters may be missing and may be advised to seek expert help. They may need to seek guidance from mentors, veterans or seasoned experts having dealt with all round operations of a company, and can provide sharp insights into successful running of businesses, they would have steered organisations well in almost all functions and departments.
Dr. Yasho V Verma is also a former COO at LG, an academician, a startup mentor and a veteran in consumer durables. Currently, he is advisor to Videocon and a member on board of Dena Bank. Dr. Verma is a PHD in organizational behavior from IIT Kharagpur.