Following the investor pitch, their outcome, and subsequent progress of those who receive funding on Shark Tank reiterates some fundamentals of entrepreneurship.
I’ve been an avid follower of Shark Tank. Apart from its entertainment value, I’ve found Shark Tank to be instructive about some fundamentals of entrepreneurship, and of pitching to investors. The deal making and deal structuring also provides us a range of possibilities beyond just equity based venture capital funding for startups.
Here are some things I learnt from Shark Tank:’
Gimmicks and showmanship doesn’t impress investors: Passion, commitment and conviction does.
Setting the context right is super important in helping investors appreciate that what you are doing has a strong market potential. Clarity of communicating what you do gets investor attention.
Having clarity on who you will target as customers (even if your product is relevant for everyone), how you will reach them, what your sales pitch to them will be, how you will deliver the product/service and how you will provide after-sales support are as important, if not more important, than a good product or service
Know your numbers: Entrepreneurs with a good understanding of market dynamics, and what their fully loaded costs will be and how the numbers stack up have a much better chance of getting investor attention…. and better valuation.
Resourcefulness is about leveraging all your current resources to overcome current constraints. Get things done. Somehow.
Apart from other learnings outlined above, one observation that stands out is that good sales numbers shuts everyone up. Else, everyone has an opinion on how you should go about your business.
Having an idea is not the same thing as having a plan. At Applyifi we urge entrepreneurs to develop a comprehensive business plan, and then execute it well.
If someone you know could benefit from what we do, please direct them to www.applyifi.com.
By Prajakt Raut – Founder Applyifi
Applyifi helps startups refine their business plans and investor pitch deck [www.applyifi.com].
A good mentor-mentee relationship can be game-changing for a startup, and therefore it is important that both – mentor and mentee – understand how they can make the engagement meaningful, productive, rewarding and fulfilling.
A good mentor can make significant contribution in not just the success of a startup, but also in the personal and professional growth of an entrepreneur. And therefore, I advise entrepreneurs to not give the tag of a ‘mentor’ loosely to anyone whose advice you seek regularly.
Mentoring is way beyond business advice and expertise sharing, and hence entrepreneurs and experts should be very, very careful when initiating a mentor-mentee relationship.
Who is a good mentor for your venture? Continue reading “What makes a good mentor-mentee relationship”
As with many aspects about business and entrepreneurship, there is no clear ‘yes’ or ‘no’ answer to this question.
It depends on a number of factors. Ideally at the seed stage entrepreneurs should seek investors who will help them in the formative stages of the venture. Individuals who can provide an experienced perspective, or who can provide an experienced opinion to help make choices, or who can make introductions to potential customers, etc. are ideal investors in a startup stage.
Continue reading “Does it matter who invests in the seed stage of a startup?”
While most entrepreneurs think of VC funding as the most obvious way of funding their startups, there are actually many different ways in which you can fund your startup.
Getting Risk Capital I.E. Angel Investors Or Venture Capitalist – VCs
Angel investors or VCs are investors who give you capital in exchange of equity in the company.
Continue reading “Angel investors, VCs and other funding options for startups”
Senior professionals, moderately successful entrepreneurs as well as high net-worth individuals (HNIs) have been expressing an active interest in investing in start-ups. Individuals who are keen to explore start-ups as an asset class, however, have to recognise that investing in them is a high-risk, high-return game.
They need to get comfortable with the fact that they could lose their entire capital in some of the companies they invest in, and that most of the start-ups they invest in may not succeed.
Anyone who has the ability to spare Rs 5 lakh or above a year — and not lose sleep over it — could look at co-investing in two-three start-ups a year, so that over a two-three-year period, they are able to build a good portfolio.
With a diversified portfolio, investing in start-ups can provide better risk-adjusted returns. Existing angel groups and investors typically invest in start-ups raising upwards of Rs 2-3 crore, as their members do not usually want to write smaller cheques.
Continue reading “How angel investors can boost the start-up ecosystem in India”
Here’s the story of Meedo – One stop solution for Customised Lifestyle products like T-shirts, Bags, Jewellery, Perfumes…
Catch them on –http://www.meedo.in/
In conversation with Vinoth Kumar of Meedo –
Tell us about the story of your startup – Why did you start this, how did you start, when did you start?
I used to run a retail outlet for the last 4 years, the idea of customised stuff struck when I was running the retail outlet in a very small place to validate the market in that particular locality. In our first year of operation, we missed sales because customers want a lot of options, but as a retailer it is very difficult to stock each and everything. For a business like mine, there isn’t any window shopping, rather business happens with regular & loyal customers. So we identified that there is some real problem to be addressed. We also did a small market survey among the retail owners and majority of them showed interest in launching customised service in their outlets. Thus, we decided to go with it. And, to take one thing at a time, we selected tees.
Continue reading “Startup Showcase – Meedo”
2014 was a defining year for the Indian startup ecosystem. Compared to the rest of the decade, a number of significant events and activities had changed the very nature of the startup world. Companies like Flipkart,Snapdeal, PayTm, Zomato, etc had redefined ‘scale’ and investors had started placing big bets on them. These companies darted ahead of the pack, to not just dominate their markets, but to grow it too. Of course, they were helped by a conducive environment – mobile phones, internet connectivity etc – but they also built infrastructure, people and processes that could handle a different order of scale than what they themselves could have imagined a few years ago. These startups demonstrated the potential and the competence to build world-scale companies and created new goalposts for entrepreneurs to aspire for.
As a result of e-commerce, a number of enabling technology and service companies started becoming more meaningful. Analytics, online engagement platforms, delivery companies etc found a much larger market to address their business case, and therefore their investment-worthiness became stronger. What remains to be seen is how effectively the e-commerce industry will retain customers once the discounting era is over and customers have to buy on the fundamental value proposition of e-commerce i.e. ease of access and choice. We may see some changed market dynamics at that stage, and the transition phase may throw up some new, unexpected leaders.
Continue reading “Changing dynamics in India’s startup eco-system”