"The value of an idea lies in the using of it."
-Thomas Edison, Co-founder, General Electric
It is the best of times, it is the worst of times, it is the epoch of belief, it is the epoch of incredulity, it is the spring of hope, it is the winter of despair. If you have ever founded a start-up or been a part of an exhilarating start-up journey, I am sure you’d relate to this paraphrased quote by Charles Dickens.
As exciting as a start-up story is, the process is much like a roller coaster ride – thrilling highs, stressful lows and twists and turns at every corner!
Indian startup space – The story so far
Over the last decade, the Indian start-up ecosystem has witnessed exponential growth – from around 7,000 start-ups in 2008 to over 49,000 start-ups in 2018. The investment scenario looks promising too, with the start-ups witnessing a 108% growth in funding, in 2018. From a global perspective, India has become a hotbed for innovation and the third fastest growing hub of technology start-ups, after the United States and China.
Bolstered by favourable factors, several encouraging start-up stories have come into the limelight, and rightly so! From e-wallet solutions like PayTM and PhonePe to food delivery apps like Swiggy and Food Panda or educational start-ups like Byju’s and Unacademy, the country abounds with splendid success stories and is now home to 26 tech Unicorns.
The pillars of sustained growth
Any good idea can herald the start of a successful start-up. But, the idea alone does not suffice. A study by IBM Institute for Business Value and Oxford Economics highlights just that. Around 90% of start-ups fail within the first five years. In my opinion, start-ups can chart sustainable growth strategies by leveraging the experience of a skilled team, to hone predictability, nurture talent and scale up prudently. Here are a few ways in which budding start-ups can accomplish the purpose –
1) Initiate impactful innovation – Is the idea a genuine market requirement or just a spin-off? By developing products and services that are relevant to target customers, entrepreneurs can design Unique Selling Propositions (USPs) that effortlessly stand out from the crowd. The booming success of UrbanClap exemplifies the same. By interfacing service providers like plumbers, packers and carpenters, who would otherwise be inaccessible for busy urban dwellers, the start-up bridged a genuine gap and garnered consumer acceptance.
2) Prioritize progress – Entrepreneurs should always be focused on taking their business to the next level, by spending enough time to measure performance metrics – sales, customers and finance. With a frame of reference, from where they are to where they’d like to be five years from now, start-ups have to devise elaborate, pragmatic strategic growth plans. The fastest-growing chain of hotels and living spaces, Oyo, is a testament to a well-charted growth story.
3) Attract the right talent – To hire skilled, motivated team members, entrepreneurs have to build a work culture that values meritocracy and smart work. If hiring local talent is challenging, remote employees or flexible work arrangements can be explored too. By being an amazing place to work that offers challenging projects and ambitious growth opportunities, a start-up can uplift employees during its growth journey.
4) Seek technological and managerial mentoring – As a start-up, you can have a great idea, a steadily expanding customer base and investor backing – but you could still flounder to manage scalability and expansion plans. That’s where a mentor could be an invaluable asset. Establishing connections with resourceful mentors goes a long way in reaching out to customers, developing better products and services, providing superior customer experience, negotiating win-win deals, managing human resources and allocating capital. Incubators and accelerators would be a good starting point for beginners.
Triggering chain reactions
These are exciting times for the Indian start-up ecosystem. What’s more exciting is that young entrepreneurs are fuelling this growth, with founders aged less than 36 years dominating over 73% of the space. And in today’s fast-changing world, the responsibility of helping these creative youngsters address challenges effectually and navigate issues prudently lies on the shoulders of experienced advisors.
These, I believe, will trigger chain reactions that can help realize the dream of 100 Unicorns by 2022. The result? Only time will tell!
