Vijay Anand | The Startup Guy.

What Nobody Ever Tells You.

Posted on: May 1, 2008

You could be this crazy economist turned entrepreneur, and can have a gazillion keywords and phrases to explain every phenomenon under the sun, but the funny thing about economics is that they usually explain everything that has happened, and can even explain what is happening, but could never quite explain whats going to happen. You cannot, with a set of symptoms predict what the next step is going to be like – It could be a boom, inflation, a market correction or just another dull boring day, any of which might be just around the corner.

If you want to understand timing, economics is the wrong subject to pick. Intuition, and your own observation of the markets is what will save you. Nothing else usually helps.

After you have laid out your financial planning and operations chart for your company, and God forbid taken investor money (read more accountability), you could cook up a million reasons during the board meeting as to why you did not or were not able to meet the project sales plan. None of them will stick. The only valid reason that you could ever get away with an acceptance, is if the market changes.

When a market flips, its boom time for a startup which is looking to ride that wave, and usually spells death for every company out there which was riding the previous wave – unless you anticipated the second wave and were prepared with your next line of products and surfers to ride that one as well. Or if you were a big enough corporation, you could just with sheer muscle power create a wave (Apple does it all the time).

There’s also the other unfortunate incident where you take your hand-carved board into the waters, and sit on it for days, years and decades and realize that thanks to Global warming, you are no longer in the shore, but in the middle of the ocean and there are no tides there, just still waters.

Timing, is a very crucial issue for Startups. Most of them do ride the waves to gain that momentum and catch that hockey stick growth. There are some who just focus on everyday problems, everyday solutions and don’t care for the tides, the waves nor the water at all, and go on living. Know where you stand, and if you are in the water with your surf board ready, be sure you get your timing right, and better well be sure about it with all the stats. The markets, when they change, are never forgiving and take no prisoners.

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