9 Myths and Misconceptions about Startups

Startups are driven by motivation, passion and a great idea. But that does not conclude to the success of your startup. We have so many stories of startup entrepreneurs who are living a luxury life and everyone dreams to be like them. Mark Zuckerberg, Bill Gates, Steve Jobs, Richard Branson and Larry Page are few names that are always in the limelight. However, each of them had gone through endless struggles, sleepless nights and financial breakdown.

During the initial phase of startup, lots of misconceptions and myths surround entrepreneurs. As an entrepreneur, we hold a wrong perception of how the things work smoothly and everything can be achieved overnight.

Why would 90% of startups fail at an early stage, if the things were so smooth? If you are passionate about your startup, make sure to read the article in order to free your mind from the myths and misconceptions that have been fed to you for a very long time.

Without further ado, let’s get started.

1. Modern Technology will lead to Success

Adopting modern technology is perceived as a highly innovative approach to lead startups to the success. In fact, it is important to deploy modern technology in this era. However, many other factors need to be considered.

If you are deploying high-end technology, it is good for you. Nevertheless, what customers are looking forward is state of the art solution that would solve their problem. Before you invest in technology, make sure to look at what is demanded by the customers. You need to address the pain points of the customers at large and less consider the deployment of modern technology to ensure success.

2. Doing Things on Your Own  

In the early stages of a startup, everything needs to be started from scratch. For instance, developing a website, generating content, managing social media platforms etc. are few to name. As a founder, many of the people believe that everything has to be done on your own, which is wrong.

No doubt, you are low on budget and have little to no resources. You need to focus on bigger tasks and outsource the smaller ones. It won’t cost you much as there are many platforms to offer you great services at low price.

3. Thinking of Making Money is wrong

One of the biggest misconceptions about startups is that entrepreneurs do not need to think about making money at early stages. Moreover, they aren’t even allowed to keep something for themselves.

It does not justify at all as the whole objective of establishing a business and selling product is to make money. It is wrong to ignore profitability. You may have come up with many stories of many entrepreneurs who did not take a dime in the first two to three years. It is admirable but not a necessary part of a startup business.

4. First Idea is the Best

The first idea is always the best and that is what leads you to success, which is wrong. Very few of the entrepreneurs would have tasted success after hitting the first idea and implementing it. Startups begin with many ideas, selecting a few and implementing only one out of hundreds.

Brainstorming involves generating as many ideas as possible. The focus is on quantity instead of quality. It is the right time to learn many things based on these ideas. Sometimes, you will come up with the ones that can be combined with other as well, making it great and addressing the pain points at large.

5. No Eating, No Sleeping

You might have watched documentaries where entrepreneurs claim to have sleepless nights and spending the day without eating. This might be true to some extent, but not necessarily an essential part.

For a productive work, you do not only need proper sleep and food but also get some time out for a workout or any physical activity. You have to work 12 to 15 hours a day to kick-start your business, but that does not justify the price of your health.

6. Startup is Dazzling  

Startup seems to be very luxurious and dazzling when you watch it in a Hollywood movie. However, keep this in mind that movies are just showcased where everything feels like stress-free and easy to achieve.

However, startups are not what it seems to be. Yes, successful entrepreneurs enjoy great and luxurious life. But have you ever imagined of what they have faced in the past. The struggles are countless, finance is little and resources are limited. It is just like reading the novel from the end where you didn’t get the idea of character how it started with miseries and ended up greatly.

7. Startup is Risky

The startup is risky and some of the people might step down to pursue their dream. However, the surprising fact is that it is risky, unless or until you have done the market research. Great ideas can place you in the best 500 fortune companies.

It is only possible if you have worked hard on the idea and touched the pain points of the customers. As a startup, if you know what you are doing, there are many chances of tasting the success.

8. Competitors will take the Lead

You are new, your idea is new and your product is new. Someone might tell you that your competitor will take the lead because they are too old and people trust them. However, if you have a unique idea and offering something that is missing in the competitors’ product, how can you fail?

You must have some unique propositions and value that you offer in your product, only if you have researched well in the beginning. However, unique offerings don’t mean that they will out beat competitors. Marketing, branding, giveaways and outreaching customers are few other things needs to consider.

9. Everything Needs to Be Scalable

Everything needs to be scalable for startups, the biggest misconception among people. Majority of startups who pursue their idea believe that the product or services they are offering must be scalable or otherwise it would lead to a complete shutdown.

This might be true to some extent, but startups really need to find the idea that yields long-term benefit for the customers. For instance, an app that allows you to track productivity is something that is needed even after centuries. With the response from customers and evaluating your product from time to time, you will successfully scale your business.

Conclusion

As a startup founder, you need to carry yourself away from the fears, myths, and misconceptions. If you are trapped in the endless world of folklores, doubts, and delusions, you might never be able to take the first step.

Author Bio:

Ray Parker is an entrepreneur and internet marketer with over 15 years of experience in Search Engine Optimization, Creative Writer and Digital Marketing with IQVIS. He has worked with several clients from all over the globe to offer his services in various domains with a proven track record of success.

India is youngest startup nation with 72% founders below 35 years: Nirmala Sitharaman

Start-ups are the next big economic force in India, the world’s youngest startup nation with 72% founders below 35 years of age, Commerce and Industry Minister Nirmala Sitharaman said here on Saturday.

“Start-ups are the next big economic force in India. Close to 4,400 technology startups exist in India and the number is expected to reach over 12,000 by 2020. India is the world’s youngest start-up nation with 72% founders less than 35 years,” Sitharaman said at the Start-up India states’ conference.

India has been pegged at third place behind US and Britain in terms of the number of start-ups. “Government is committed to make Start-up India initiative a scalable reality and to provide an environment for our start-ups to thrive in. Through the initiative, we want to ensure that the momentum is accelerated. We are determined to make it a start-up revolution,” she said.

“The government will facilitate to ensure that world’s best start-up ecosystem is in India,” she added. The government has operationalised the Start-up India Hub on April 1, 2016 to resolve queries and to provide hand-holding support to start-ups.

The hub has catered to more than 13,500 queries received from start-ups through telephone, email and Twitter, she added.

Unitus launches second fund of $50 million, to fund 50 startups

Unitus Seed Fund is launching a second fund of $50 million (Rs 340 crore) focused on India. The fund will invest the amount in around 50 startups with each company receiving between Rs 1 crore and Rs 3 crore. The fund invests in startups based on their potential impact in sectors like education, healthcare, fintech and agriculture.

The first fund of the Bengaluru-based investment firm was $23 million and its investors included Bill Gates’ Gates Foundation, Ranjan Pai, Mohandas Pai and others. Most of the participants in the first fund are also expected to invest in the second fund. It has almost fully deployed the first fund, which was established in 2012. Unitus expects to get the first tranche of the new fund by the third quarter of the calendar year.

“At a time when there is a pullback by some investors, it is important that we have money to help our companies survive with follow-on funding,” Will Poole, co-founder and managing partner of Unitus, told PTI. He added that the investment firm’s portfolio startups has a high survival rate with just three write offs and two partial recoveries. Eight companies from Unitus have raised Series A funding (first big round), two have raised Series B and one startup is about to raise Series C investment.

“In good companies, we plan to participate in follow on fund raising as well,” Poole said. Unitus raised almost a third of its first fund from Indian investors. This proportion is expected to be higher in the second fund. “When we went to meet potential investors for the first fund, we got blank stares. Now they understand what we are doing,” says Srikrishna Ramamoorthy , partner with Unitus.

Ramamoorthy added that the investment firm never compromised on returns for impact. He said the success rate has helped the fund to attract mainstream venture capital funds to participate in subsequent rounds of funding of their portfolio companies. Poole said that the criteria to measure impact are creation of jobs, incremental income generation, access to information, supply chain and efficiency. Unitus said it met around 2,000 startups before investing in 23. “We avoid ‘me too’ startups and ask entrepreneurs to conserve capital,” added Poole.

The portfolio of companies that Unitus Seed Fund has invested in includes DriveU, Hippocampus, Blowhorn, iBreastExam, Jack on Block, Labinapp, AddressHealth, and BetterPlace.

Monster.com uses customer base to build ecosystem for startups

US-based employment website Monster.com has been making inroads into the startup ecosystem by leveraging its customer base to crowdsource funds for entrepreneurial ventures in India.

In January this year, the company came up with a survey to judge the pulse of its 49 million user base around startups. “Within Monster, we were also exploring the startup space as our 49 million users have aspirations to start something of their own,” said Sanjay Modi, managing director of Monster India.

It was then that the company went ahead and created an umbrella called ‘Make India Work’ – an ecosystem for startups. “Breakthrough came when we started looking at angel funding and crowdsourcing, we said that these 49 million users could be potential funders for startups,” he said. These job seekers got an immediate connect, which was absent earlier. “We have also provided a framework for those who wanted to startup. With mentors, funding, we are giving an entire eco-system for those wanting to work for a startup and those wanting to start one,” Modi said.

Currently startups don’t fetch any significant revenues for Monster. “But it will definitely get bigger,” he said. Monster, which has five mentors including Maheshwar Peri and Arunachalam Muruganantham, CEO, Jayaashree Industries, is looking at adding more mentors and roping in venture capitalists.

The company has also launched a new product —’social job at hiring’. This was a result of its acquisition of a company called ‘Talent Bin’ in the US about two years ago. The offering through this acquisition is a product that crawls the digital landscape. “So this product crawls Twitter, FB, Google and gives a list of candidates based on skills as per the clients’ requirement,” Modi said.

Oracle launches startup incubator in Bengaluru

Oracle has launched a global-first accelerator programme in Bengaluru with the objective of catalyzing India’s nascent startup ecosystem and provide a fillip to Prime Minister Narendra Modi’s Digital India and Make in India initiatives.

The announcement comes close on the heels of Oracle CEO Safra Catz announcing a $400 million investment into the Bengaluru technology centre.

Called the Oracle Startup Cloud Accelerator, the programme will incubate 5-6 early-stage technology startups building innovative solutions through a six-month acceleration programme that will give them access to mentoring, co-working space, access to Oracle’s customers, partners and investors, and free credits on its Oracle Cloud platform.

“We are incubating first in India,” said Sanket Atal, group VP, development in Oracle India. “The Indian startup ecosystem is doing incredibly well. We are third or fourth largest startup country in world and with the whole Digital India and Smart Cities initiatives we would like to support the movement and the ecosystem in which we have thrived for so long. We firmly believe that this will help India to leapfrog to the next level,” he said.

The centre will be inaugurated by Oracle’s president of product development Thomas Kurian on Friday. “Through the Oracle Startup Cloud Accelerator and the growing popularity of cloud as an alternate computing model, we want to be the catalyst for new business ideas,” Kurian said.

Over time, the accelerator programme will also be launched in other eight cities, including Chennai, Hyderabad and Mumbai.

Oracle’s efforts to leverage its cloud platform is an attempt to compete with IBM, Amazon Web Services and Microsoft Azure, all of which have been having a good run in the country.

 

SOURCE: PTI

This startup is a cloud-based mobile application testing device- pCloudy

With the ever increasing number of technology companies that are coming up world wide, there is an ever increasing need for Developers/Testers worldwide who need an on-demand and economical platform for testing their Mobile Apps on variety of real mobile devices. And pCloudy is here to solve that problem.

pCloudy is the only Mobile Device Farm on cloud that provides a state of the art Mobile App/Website test platform as a lone player in not only India, but also the entire Asia Pacific region as of now. Hence, it sure has the first mover advantage in the market.

The origin of PCloudy is based on one simple question: How do we simplify the current Non-effective Process of On-Device testing of Mobile Apps? And seeking the answer to this very question pCloudy was founded by an enthusiastic trio of Avinash Tiwari, Pankaj Goel and Lalit Jain. The company is based out of Bangalore and is currently a strong team of 40 people.

Avinash Tiwari is the Director of pCloudy, and he is the brain behind pCloudy and oversees the organisation’s entire operations. Pankaj Goel is responsible for the establishment of two entrepreneurial ventures, CressTech & SmartSoftware, he is rightly called the ‘Open-eyed Dreamer’ by friends and colleagues. Pankaj took on entrepreneurship at the very young age of 25. The risk was huge but the efforts proved to be worthwhile. His first venture, CresTech Software systems is a leading company in Independent Software Testing space. It has achieved CMMI level 3 certification. Today, pCloudy is already proving to be the most sought-after solution by eCommerce and mobile app companies besides larger enterprises. And last but not the least Lalit Jain who is famously known as The people’s Man. Lalit firmly believes in the Philosophy..”A Business is not about numbers but about people” – He has applied all his understanding of behavioral science in building a global network of partners and customers for OpKey and pCloudy.

 

SOURCE: PTI

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