Have The 'Profit-Pie' Conversation Early On, Says POPxo Founder
Money can change equations between partners, for startups they may do so catastrophically. While no start-up is averse to profit making, sometimes splitting the share is where the real problem could emerge.
Imagine all that hard work to convince investors, put 24 hours over building your dream, crossing the first hurdle of survival go kaput – all over money!
Dividend sharing is a tricky game and startups, when they reach that stage with all the hard work, need to manage it well.
Speaking on the sidelines of the TiE India Internet Day in Gurgaon, online magazine POPxo Founder and Editor-In-Chief Priyanka Gill, said it is the most ‘painful conversation’ you need to get done with in the early stages of your startup.
“Have it early, have it painlessly, get it out of the way and get done with it. You always want to think how big your pie is going to be, today you are fighting for something, tomorrow it is going to be something huge and worth fighting over, so have the discussion,” she said.
It is touted as one of the most uncomfortable splits ever.
Involve a mentor
Stressing on the need to ‘talk things out’ rather than let the business suffer at a later stage, the chirpy entrepreneur said, “It is the most painful discussion you are ever going to have, so have it – get done with it. Involving someone that everyone trusts, someone like a mentor, investor or an advisor is also a viable option.”
Striking similar cords, Rajesh Sawhney, founder, InnerChef, who said, “The earlier you do it, the better it is for your business.”
Gill also highlighted the need for a co-founder in the organization and how that helps to add a new perspective.
Talking about her startup story Gill said that Indian women were shopping online, but they had nothing to read on fashion or lifestyle.
“There was nothing much for the Indian woman to read on, something that they could relate to – so that became our starting point for our startup.”
Launched in March 2014, POPxo has over 2.4 million readers per month. The target audience is the quintessential young Indian woman – who wants to know about lifestyle, fashion and is comfortable in her own skin.
In concept, POPxo, initially set out to be luxury website for NRI women but later Gill and her co-founder Namrata Bostrom went on to tap the Indian women.