Starting a Start-up?

Recently I got an opportunity to be part of a team that organized an intercollege business plan competition for student entrepreneurs. Over 200 teams participated from close to 50 colleges and 10 Universities and after several rounds of screening and evaluation the winner got chosen few days ago among the distilled top 5.

?Some take-aways (nay advice) for young startup founders.

?A1: First principles rock

Like all these start-up names that are so confusing and complex, have seen that even the though process is complex. Why can’t you keep it simple and easy to understand? Safe to assume that most of your audience will not be an expert in your chosen field (including when you pitch for funding). Clarity in your mind / thoughts will lead to clarity (and simplicity) in your communication. By sounding complex, you are not fooling anyone!

?

A2: Have you talked to your potential customers / consumers / users?

And I don’t mean just your family and your closest friends. Yes, do that, but don’t stop there. Burn rubber, hit the road (I know its so hot outside) but unless you get firsthand feel, info, insights, and learnings, you will not be able to build your product or service. Don’t shy away from talking to people, asking them their opinion about your idea. And please, don’t worry about confidentiality and competition!

?

A3: Physical limitations

Remember that, to scale you can’t be too dependent on physical presence. It’s not impossible, it’s just a bit harder. Try and understand that parts of your business can be non-physical or non-person dependent. Sure, there will be some aspects that will mean physical assets and manpower. But if your business is primarily built on that, not saying don’t do, have realistic expectations on how fast it can grow.

?

A4: Money, money and money

Yes, all startups need money, most believe they need lots of that. Fair enough. But then be clear about couple of things – how much, when (yes, when!) and what will you do with it? Whatever money you are asking, you better be clear how much of that you need when (as you can safely assume in most cases you don’t need all that tomorrow morning) and what plans you have to spend (not burn) that money

?

A5: Operationalize

At the end of the day, you need to be clear how are you going to convert your great idea into a credible and hopefully sustainable business. What are the operational details of delivering your business – be it a product (then lot more thinking needs to go in it) or service (more complex than it sounds) or something that can be delivered online (easier than the rest) – so supply chain (both inbound and outbound), legalities of ownership of your product or service, payments, service aspects as relevant, etc.

?

A6: Are you sure there’s an opportunity?

Just because there is a perceived gap in the market, doesn’t necessarily mean that there is a market in that gap! Travel the road less trodden etc sounds nice on motivational posters. Sure, go ahead and take that path. But be mindful why very few have taken that route? Is it because it is not the correct path? Is it because some of your successful competitors had taken that path earlier, got badly bruised and hurt and hence have taken the other path? Or is it really a virgin territory you are entering?

?

A7: Do you want to make money from your business or off your business?

Finally, be clear in your mind about this. There is nothing wright or wrong about either choice. But clearly what you want to do with your business depends on your final goal – to start a business that flourishes, scales and grows or pursue the path of valuation and exit the business at the first / second opportunity?

PS: Most the above are relevant for all kinds of start-ups, not just the student ones.