Vijay Anand | The Startup Guy.

Posts Tagged ‘Subho roy

I’m convinced that we are doing something wrong.

During a conversation with someone who has experience beyond my age, on how the product landscape in India is evolving, he smiled, took the time to coin his words (into something more politically correct) and said, “Nobody is really changing the rules of the game. Everyone is looking to make a quick buck”. When I met Subho Roy of IAMAI a few weeks back, he pretty much resonated with that and almost let out the frustration saying “This is all turning into a valuation game. Where are the days of building solid businesses?” Is there something wrong with that? Thats what I am hoping we can discuss, argue and debate about here.

It’s that time of the year for Proto.in – got barely a month to go and usually this is the time when we are finalizing all the companies and lining up the speakers for the Fastrack Sessions. We are talking about… How to sell, as a Startup? Not how to sell-out, more like how to sell your products and make revenue. There is much that seems to be obscure in the land of the startup community with so much millions and trillions discussed about – especially the size of the VC firm’s wallet.

I have been touching base with a fair slew of guys who have natively built and sold products here in India. Tally is one such company that I got in touch with and the response I got really got me thinking – because it resonates with what Mr. Experienced told me before. He wasn’t sure if he could make it to the event since he has travel plans, but left with a note saying “I wonder if people are ready to hear the heartache of building a business over 18 years. It might even depress a startup.”

Lets not make a mistake here saying that Tally just didn’t hit it right. Do you know how long it took for Bose to become a double digit million dollar making company? More than a decade. There is a joke within circles that Bose would be a bad company in a VC’s portfolio. Infosys took 25 years to attain maturity and go public. Look at Wipro. Look at Microsoft. The list is endless.

Arguably so, there is a compression in the age of the entrepreneur, the pace at which modern businesses move and grow, and it certainly has shortened, but has it also shortened the lifespans of the company?

I strongly believe that as a startup entrepreneur, the wrong person to meet is a VC. Keep in touch with him, listen to them, and get your due diligence out of them, but when it comes to business models, ignore what they have to say. They are going to want you to make revenue from day one. And the process to do that is to have an opportunistic view and that unfortunately is always short lived. Forget revenues. Forget business models. Identify the need. Understand your customers. Understand what the market is evolving towards. Then its upto you to perceive those needs and demands and formulate the solution and figure out the price discovery as to how much your customers would cough up to get that handed to them in a platter.

Instead, if you go to an investor much earlier on, on your toddler days when you should be focusing on growing, having fun and enjoying the time speaking mumbo jumbo with your peers and playing hide and seek, you’ll be wrapped in a straightjacket or in a war suit and sent to battle the mammoths of the battlefield. The end of that is not rocket science to figure out. But trust me, a kid in the middle of a battlefield will be sensational story – and trust me you will get the attention of a whole lot of folks. You just wont last long enough.

I’ll nitpick on one industry. The Travel Industry. If you go and pitch to anyone saying that you are working in the Travel Industry they are going to shun you thinking that you are the next travel portal claiming the cheapest price on the web. It has unfortunately come to that. But do you know how much inefficiencies are still there in the travel industry? The issues with checking in, tracking baggages, and even the legacy systems that they have to manage the passengers inside the terminal – the systems are really not keeping up with the explosion in traffic. Buying a cheap ticket is the least of the worries as of now. How many of you know of Sabre? They are pretty much the underlying platform behind the entire air fleet management and PNR systems worldwide. They are big, which means they are probably scared of radical change. Tell me what they are missing out on, what of that is adding to the woes of the traveller, and fix that.

I remember recently when I was talking to a publishing media about a recent magazine that they had launched. This is a magazine which is focused for entrepreneurs – and its quite well known by now. The magazine house has defined a period of five years for them to break even. I asked the man at the helm if the print industry had such a slow uptake. He responded saying “we break even in 14 months, but we’d rather make the investments in the first couple of years towards a solid start”. He made sense. Lots of sense.

How you lay the foundations for your empire matter. There is a parable in the bible about a man who build his house on the rock, and one that built it on sand. The way the house came up, obviously had a difference since the one on sand required much less work and it was all upwards, but when the rain came down, it showed which one was a much solid refuge to live in.

I think, err believe that startups should have fun. Build something people want, and build it having fun and in a way that you are passionate about. I am strongly against working 18 hours a day and racing against time to catch the wave. My most favorite teacher in school always said that it was much easier to fish in a calm ocean than in the middle of a hurricane. Ideas, concepts and the clarity of mind to execute are all luxuries that you can only enjoy in a calm ocean.

So tell me, if you were absolutely passionate about something and want to totally change the rules of the game of an industry, and would want your name to live on for years to come, what would you do? Think about it… take your time… ah, thats what you should be doing. Not living on Instant noodles. Let me tell you what, lets sit down with some candlelight, under the clear skies, and treat ourselves to gourmet – slightly tedious, painful and takes more time, but I tell ya, its totally worth it. What say ye?

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