Lesson For Young Entrepreneurs / Start ups

One question I am asked time and again by startups and solopreneurs: What is 5-second business advice for new startups and especially for solopreneurs?

This 5-second tip worth lifetime peace and prosperity is PLAN YOUR WORK and WORK YOUR PLAN!

So, go ahead…

PLAN YOUR WORK and WORK YOUR PLAN!

And you’ll be super successful with a happy work-life balance!

Get going…without fear and with a BIG SMILE!

*Set Your Goals High, But Achievable"*

Every human being has a goal in life and has some purpose to fulfil that goal. No goal can be achieved without purpose. And if there is the only purpose, the goal is not fulfilled. The goal must be achievable.

Well defined, clear, and unambiguous. Measurable With specific criteria that measure your progress toward the accomplishment of the goal. and your goals should be relevant to your life purpose.

Your goal also needs to be realistic and achievable to succeed. In other words, it should expand your skills but is still possible. When you set an achievable goal, you may be able to identify previously missed opportunities or resources that could bring you closer.

"STOP SETTING GOALS. GOALS ARE PURE FANTASY UNLESS YOU HAVE A SPECIFIC PLAN TO ACHIEVE THEM."~ Stephen Covey

The importance of appreciating one's expertise and experience...because those are the results of struggles, experiments and even tears.

If I do a job in 30 minutes it's because I spent 20 years learning how to do that in 30 minutes. You owe me for the years, not the minutes.

There's always a blessing in disguise in every situation ...

Something far greater always comes out of moments that test me ...

I will keep going ...

Keep rising ...

I will keep believing no matter how things appear ...

My VISION will carry me through ...

I am receiving more energy that inspires me to CREATE , DREAM and MANIFEST all that my heart truly desires ...

THIS IS MY TURNING POINT ...

The only bird that dares to peck at an eagle is the crow.?However the eagle does not fight but opens its wings and flies higher - eventually the crow can’t breathe and falls down.?Key learning - not all battles, arguments or critics need to be fought with or responded to.

Nature is showing us how a predatory superpower can be driven out by a much small but intelligent entity.

All startups should develop a strategy like a crow to survive in a market dominated by big and powerful competitors.

Remember few tips:

1) Short-term pleasures can lead to long-term traps.

2) If things are coming easy and you are getting comfortable, you are getting trapped into dependency.

3) When you are not using your skills, you will lose more than your skills. You lose your CHOICES and FREEDOM.

4) Freedom does not come easy but can be lost very quickly.

NOTHING comes easily in life and if it comes easily, maybe it is not worth it.

How Startup Funding Works:

From Idea Stage to IPO, here’s how each stage splits the pie?

?? Idea Stage

You are the only person in your still unregistered company, you are not even thinking about equity yet.

?? Co-Founder Stage

A true partnership is based on respect. Respect is based on fairness. So you give your co-founder 50%.

?? The Family and Friends Round

Your co-founder has a rich uncle. You give him 5% of the company in exchange for $15,000 cash. Now you can afford room and ramen for another 6 months while building your prototype.

?? The Angel Round

You find an angel who looks at what you have and thinks it’s worth $1 million. He agrees to invest $200,000.?

Rs 1,000,000 + Rs 200,000 = Rs 1,200,000 post-money valuation

Now divide the investment by the post-money valuation Rs 200,000/ Rs 1,200,000=1/6= 16.7%

The angel gets 16.7% of the company, or 1/6.

?? Venture Capital Round

You built your first version and you have traction with users. Let’s say the VC values what you have now at Rs 4 million. He says he wants to invest Rs 2 Million. The math is the same as in the angel round. The VC gets 33.3% of your company.

Your first VC round is your series A. Now you can go on to have series B,C, and so on.

?? Going Public

The people who have invested so far want to finally convert or sell their restricted stock and get cash or unrestricted stock. This is a liquidity event as a result of the IPO process.

And the investment bankers, like Goldman Sachs and Morgan Stanley, will give you a call and ask to be your lead underwriter – the bank that prepares your IPO paperwork and calls up wealthy clients to sell them your stock.?Bankers get 7% of all the money you raise in the IPO, your startup raised Rs 235,000,000 in the IPO – 7% of that is about Rs 16.5 million (for two or three weeks of work for a team of 12 bankers). As you see, it is a win-win for all.

?? At the end of the day, 100% of nothing is a lot smaller than 17% of a successful company.

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