Start-ups hitting the jackpot are a big attraction these days.More importantly, this boom is not just about dotcoms..Startup companies, particularly those associated with new technology, sometimes produce huge returns to their creators and investors – a recent example of such was Google, whose creators are now billionaires through their share ownership.Most technology start-ups fail not because the technology doesn’t work, but because they are making something that there is not a real market for.
Well let’s just say it’s not just something that happens overnight.Launching a company even in the best of times is not for the faint of heart.It’s something that starts with a fall or an injury.Doing so in an inhospitable economic environment requires true grit and supreme confidence. The eco-system - investors, mentors, angel investors and smart talent - that seeded and nourished startups was simply missing. Scores of successful executives are quitting cushy jobs to turn entrepreneurs. There are two factors driving this trend. One, fatter pay packets in corporate allows executives to build a financial cushion and plunge into entrepreneurship. Secondly, most have working spouses whose incomes fund the expenses of households, offsetting the risks.For some there is a sense of deja vu. Investors remember the dot-com boom and bust a decade back.
Unfortunately entrepeneurship is only just being taught at Harvard, Ivy league universities, and abroad. It is cool (good) to do a start up. Consultation is needed and also so is deep pockets once due diligence research is completed. Working on a niche, or developing one is a skill that we academics have today. The Y generation are showing and paving a track/path through these tough financial doldrums and we see a new brands and types of businesses emerging. They are not afraid to move forward. Savvy people are embracing good work ethic, work / life balance and enjoy a stability in such things that the 40 hour week of yesteryear did not.It is why we are all blogging for our livelihoods and personal interest/family prosperity collectively. I believe very few people operate on a greed level in business start ups. They are looking to give and produce, provide and to trade. Serve and to succeed. This is what the ancient people did. As tent makers, artificers, smiths, carpenters, road-makers, tailors and so on.
It is said over and over that 80% of start-up businesses fail. The reasons vary widely. As soon as a business becomes complex and lacks infrastucture/support or processes, we see the grim reaper of entropy culling out the efficiencies.However, the failure rate of startup companies is very high.Many Indian entrepreneurs have shown just these traits by starting companies in the middle of the worst global slowdown since the Great Depression. Of all resources, there is no resource more valuable than time. Time is more valuable than money. While money can fluctuate up or down, time only moves in one direction – down.The rise in investor interest mirrors well the entrepreneurial talent that is entering the fray.Startups and entrepreneurship have become cool. People are not afraid to say I tried a startup and failed. That stigma is gone.These are groups of seasoned entrepreneurs who have money, experience and are willing to spare some time to mentor and seed young startups. That's what makes Silicon Valley a hotbed for star-ups.Or you can say money buys you freedom to follow your passions.
Just like Facebook, the giant social network, grew that way, starting with simple messaging services and then adding other features.This is lean manufacturing for start-ups.
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