Learning from my first startup’s failure, The Other Home

It was a very hard decision for me to quit my full-time job with a public enterprise and build my first startup —?The Other Home. I still remember when I sent my resignation letter to my boss on 23 November 2010 and left my job on 18 December 2010. It felt a lot like skydiving without a safety net. One needs to trust his skills to either fly high or at least avoid a crash landing.

Before quitting my job,?I worked on the idea for the company for eight months with my co-founder. The office was set up, and the MVP had been released. So, I jumped the plane and moved from A787 to a single-engine jet in the mid-air. The challenge was to keep afloat while learning how to fly. The Other Home managed to leave some mark in the industry, featuring over 2,500 amazing properties in India. We had 10 employees at the peak time of our entrepreneurial journey. After our unsuccessful purchase discussion with HomeAway (VRBO), we decided to pull down the shutter in December 2014 to move forward.

Key learnings:

Greg Anderson said that “Focus on the journey,?not the destination.?Joy is found not in finishing an activity but in doing it.” I can say that it was an experience I won’t soon forget. Although the start-up was a failure, it was a valuable learning experience for everyone involved. For two reasons, I’m sharing these lessons with you: First, failures aren’t beneficial unless you learn something from them. Second, remember that every setback serves as a springboard for greater achievement in the future.

Some of the key lessons learned from my failure are listed below.

1. Side hustles are not permitted in the realm of entrepreneurship

The first or biggest mistake was that none of the co-founders was full-time in the venture from day one. I did not have a full-time job but was working on a side project to generate some cash flow to invest in the venture, as well as, meeting basic expenditures. We were in a strange position since we had one foot in and one foot out. I used to spend around 2–3 hours a day in the office, giving directions to staff before leaving out. In a strange irony, our employees worked for the company while we worked to pay their wages.

My life mentor served as my co-founder, which was a huge blessing. However, when I look back at my journey, I feel that the co-founder agreement is very critical to the company’s success. It is important to decide how much time and money you’re putting into the project. Don’t shy away to have unpleasant conversations in the beginning and create a RACI (Responsible, Accountable, Consulted, Informed) Matrix.

2. Preparation and evaluation of a financial strategy are crucial

Even though it was my first venture, I made certain that we had a solid business strategy and financial model in place from the beginning. The first priority of the business is to make sound assumptions and maintain a healthy cash flow. Many entrepreneurs failed to get their research and assumptions right.

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