Options After A Failed Startup

So if a startup fails, what are the options available for its founders? The answer to this question depends on a couple of factors like their monetary situation, their mindset, a cost benefit analysis of the different options available and so on.

I was in a similar situation recently and after pondering about it, I arrived at the following options.

Join a Startup – The biggest earning from a startup is the experience you get. This is highly valued and will most definitely help you get a job in the same Industry you were operating in. Since the experience of a startup teaches a lot of general management as well, you can look at working in startups operating in different spaces.

Do a Course – This is what I chose and is an option if you are searching for stability. Doing a course is a strategy which in most cases has one motive – getting a corporate job after. Some entrepreneurs do look at honing their skills which may help them in their future startups. I chose to do an MBA (my second) so that I could get a regular corporate job.

Startup Again – The startup journey, though very exhausting physically and mentally, is a very exciting one. A lot of entrepreneurs, like myself, get ‘addicted’ and tend to start searching for the next idea. However, your monetary situation has a role to play. Only if you have some money in the bank to sustain yourself can you look at this option.

What Makes a Startup Investable?

Not all startups get funded. Different investors have different focus areas and points they consider before making an investment.

That said, I feel that entrepreneurs definitely need to figure out the following before approaching investors.

Proof of Concept – Has the business done enough to prove that the market is big enough and customers are adopting the product/service. Generally startups go in for a beta launch to do this. A limited number of people from the target market are exposed to the product and their behavior is analysed and recorded.

Scalability – Investors want to invest in big markets. Very few investors get excited by a business operating in a very small niche. Entrepreneurs must identify how big the potential market is and must ensure that it is big enough for an investor to potentially get a good return.

Barrier to Entry – This is important and often a reason for unsuccessful pitches. Investors prefer that the business model of the startup cannot be replicated easily by existing players in the market. For example, during my previous startup Beveragewala where we were selling teas and coffees online, investors felt that players like Amazon could enter this space and hence we did not stand a chance in the longer term. It is crucial for an entrepreneur to work out why his/her startup has an advantage which is sustainable. This can be a first mover advantage, an IP, a location advantage etc.

Team – The startup must have a strong team which is capable to execute the business. A perfect team is one which has all requisite skills which are required to run and grow the business.

Free Ways to Promote Your Startup

There are a lot of ways to get free promotion, especially in the early days of your startup. I have used the following for my previous startups.

Blogs - You can write to bloggers who write about stuff which is relevant. If your story is compelling enough, you might get a free publish.

Social Media - Great way to reach out to new people and build visibility.

Emails - You can send limited emails through your email account. You may have some data with you which you can use for this. Also various online email services exist which allow you to send upto a particular number of emails totally free of charge.

Classifieds - The basic posting service on most classifieds sites is free.

Videos - Make some videos explaining about your product. Posting on video hosting sites is free and tends to help in building visibility and also in getting better search engine rankings.

Entrepreneurship Sees No Age or Qualifications

Unlike a lot of other career paths, entrepreneurship is one which sees no age or qualification. No matter what your age is, your stage in life is or what you have done previously, if you get an idea, are passionate about it and feel you can execute it well, you jump right in.

A lot of school and college students feel anxious about starting a business. Starting out early has its advantages.

No Responsibilities: At an early age, you responsibilities tend to be lower. You can focus more on your business without having to worry about other things.

Energy Levels: The younger you are, the higher the energy levels and zest.

No Experience: Experience is the most important asset of a person. However, having experience has a flip side as well. Having experience can tend to slow you down at times as you become very cautious of not repeating mistakes you may have made in the past.

Team Building: At an early age, you can convince your friends, especially, to join as they themselves are deciding what to do and may have finalised a career path for themselves.

At the other end, starting out late in life is also advisable and has many advantages.

Experience: As mentioned above as well, experience is the biggest asset of a person. It helps you avoid mistakes you have made earlier and helps in finding the best ways of doing different things.

Network: Older people have stronger networks which they can use in their business. This network can consist of social and professional contacts they have made in their lifetime. This helps them organize things faster, get more people together in a shorter time, get introductions to investors, CEOs etc. and so on.

Lower Responsibilities: Again as you become older, your responsibilities tend to become lower as your children are grown up, your basics tend to be sorted and hence you can spend more time and energy on your business.

#FOCCEPT – The Key to Good Life

Dating a Startup Founder

Being a startup guy myself, I feel dating a startup founder is like dating any other person with maybe a few differences.

Giving Space – Startup guys, like me, tend to talk a lot to myself and spend a lot of time walking around pondering about how my business is doing and what I should do going forward. This space is very dear to me and helps me think.   

Sharing the Love – A startup is like a baby for its founders. You need to be open and willing to share your love with the startup as you would do if you had your own baby.

Extreme Emotions – Startup founders, especially the ones like me, tend to go through extreme emotions, feeling exhilarated when something goes right and feeling extremely low when things don’t seem to move the way you expect them to.

Time – This is one thing which is always in paucity with startup founders. You should understand this and should be ready to accept this fact to avoid disappointment and conflict later on.

Some of these factors are common with everyone and hence as I stated earlier, maybe your experience of dating a startup founder may not be as different as you fear it may be.

Looking for the Perfect Startup Idea

The best way of finding a startup idea is through experience. Sure, you can read about different Industries and do your research and come up with an idea. However, I feel if you can experience and identify a genuine problem, you feel more confident and passionate about the idea as you are a potential customer yourself. You tend to understand this idea better.

So now that you have identified an idea, should you pursue it? I guess before deciding, you should consider the following:

Passion: Do you feel like you are extremely passionate about the idea and really believe in solving the problem you have identified. Starting a company is a long and tiring process. Passion is what can see an entrepreneur through.

Skill Set: With the passion, a entrepreneur requires skill sets to execute well. If you feel you do not have or cannot put together the skill sets required, you should hold on before deciding to jump in.

When you develop a mindset of finding and exploring new ideas, you will tend to see a lot of gaps you can potentially fill. Be very sure which one to pursue and which ones to leave. Once you jump in with an idea, there should be no looking back.

Startup Model – Finding Cat Sitters Online

THE MODEL: A platform where users can find a cat sitter in their area. Users can search for, read about and book cat sitters online.

STARTUP: CatinaFlat (British startup)

WHAT I LIKE

Core Idea – Finding and booking a cat sitter in your area.

Benefits to Users- Users can search for cat sitters, read reviews, book and also get regular photo updates of their cat.

Trust – The startup takes a number of steps to build trust in a user’s mind. Insurance is provided both for the cat sitter and the cat owner. Meet ups are arranged before finalization of a cat sitter to ensure that the fit is a good one.

CONCERNS

Competition – This space has a few good startups already. With the market being a relatively small one, this can be a challenge.

Startup Model – Home Swapping

THE MODEL: A platform where users can find different homes in their destination of choice and swap them with their own. Users can either swap directly with other users or can use points earned to find houses they can stay in.

STARTUP: LoveHomeSwap (British startup)

WHAT I LIKE

Core Idea – Home-swapping is a great way to travel on a budget and also get an authentic experience of the place you wish to visit.

Swapping Protection- The startup also provides users protection against accidental damage and booking cancellations. This is able to create trust, which probably is the main bottleneck in users using a service like this.

Encouraging Travel – One of the biggest constraints in travel is the budget. Home swapping is able to address that quite reasonably.

CONCERNS

Safety – I feel safety of users and properties is a crucial factor in the transaction. The startup, in addition to providing insurance, should also vet their users well before adding them into the community.

Startup Model – Short Term Finance to SMEs

THE MODEL: A startup which offers SMEs access to short term financing with no paperwork. Typically finance is offered to fund gaps in cash flows and for stock purchases.

STARTUP: Iwoca (British startup)

WHAT I LIKE

Core Idea – Access to short term financing for SMEs.

Benefits to Users – Users can get funds by simply linking their online accounts (such as Paypal, Amazon etc.) or by uploading bank statements. An offer is given within hours of doing so. Loans are unsecured and have no documentation or origination fee attached.

Ease of Use – Loans are approved and available within hours. Money can be transferred to your bank account 24*7 and interest is charged pro rata based on the time you take to repay the loan.

CONCERNS

Competition – The startup is competing with banks and other established financial institutions. Building trust will be key.

Asset Performance – Lending to SMEs without collateral is risky. Bad debts can be an issue of concern.

Startup Model – Curated Fashion Products

THE MODEL: A startup which offers users the best of fashion, lifestyle and beauty products handpicked by a team of experts. Users can save products to their personal Grabble wardrobe and can also buy them safely and securely.

STARTUP: Grabble (British startup)

WHAT I LIKE

Core Idea – Handpicked fashion and lifestyle products for users.

Benefits to Users – Users can get a curated daily list of fashion and lifestyle products which they can buy in a single tap. Also style guides are provided to inspire users and make them aware of the latest trends. Also users are intimated if any of their desired products go on sale, so that they can get a good bargain.

Curation – The startup has a team of fashion experts and stylists who curate the daily list of products.

CONCERNS

Competition – The space is filled with competitors, ranging from fashion ecommerce stores looking to offer curated products to other similar apps focusing on curating lists of products for users.

Startup Model – Phone Support Made Easy

THE MODEL: A startup which offers businesses phone numbers instantly in over 40 countries. No deskphone or hardware is required. Everything is managed through an app.

STARTUP: Aircall (French startup)

WHAT I LIKE

Core Idea – An app making phone support and collaboration easy.

Features – Users can install and setup the app in a few minutes. Local phone numbers from over 40 countries can be selected by users. Collaboration features such as call cascading across available people, shared contacts, transfer call to teammates, support ticket management and analytics are provided.

Integration- The app can be integrated with popular apps such as Slack, Hubspot, Zapier, Zoho etc.

Free Trial – Users can try the service for free for 7 days, before upgrading to paid plans.

CONCERNS

Competition – The startup will need to compete with established players in the phone support market. These may not be app based necessarily, but have a large customer base and have been in existence for long now.

Defining Your Target Market

Clearly defining your target market is a very important step in any startup’s initial days. Not having a defined target market leads to a loss of money and resources.

There are 3 steps in defining your target market.

Step 1: Start out with identifying the use cases for your startup.

Step 2: Once you have the use cases, define the users who would most likely use the product/service offered. Try to be as detailed as possible in defining users by stating demographics like age, sex, income levels, status etc. , whichever are relevant.

Step 3: Lastly define the location you intend to target in different phases of your growth.

Once you have the target market defined, it becomes easier to come up with a marketing plan which can be focused and targeted so as to get the best return on the marketing spend.

Startup Model – Accessing Digital Content While Messaging

THE MODEL: A startup which lets users access and share their digital content like photos, documents, calendar etc. while messaging, without having to switch apps.

STARTUP: Thingthing (British startup)

WHAT I LIKE

Core Idea – A smart messaging tool where users can access all their digital content.

Features – Users can access their important files while messaging without having to switch apps. Also the app offers smart text auto correction, prediction and editing features which makes the user experience great.

Integration- The app can be integrated with most popular social networks and file sharing websites such as Facebook, Instagram, your Camera Roll, Dropbox, Google Drive, Calendar and so on. This ensures that the user need not switch to any other app to share any of his/her digital content.

CONCERNS

Competition – The startup competes with other messaging apps. Messaging is a space which has some very big players and making an inroad will be difficult. Also these players have a very strong user base and can build these features, if not protected by IP.

Startup Model – Local Events Based on User Preferences

THE MODEL: A startup which offers users a mobile app where they can discover events based on their preferences connect with friends and people with similar interests and make bookings for these events from the app itself.

STARTUP: Fever (American startup)

WHAT I LIKE

Core Idea – An event discovery and booking portal based on user preferences.

Other Features – Users also get VIP admission into events. They do not have to print any tickets and can also check out where their friends and other people with similar interests are going.

CONCERNS

Competition – There is a lot of competition in the event discovery and booking space.

Startup Model – Professional Social Media Analytics

THE MODEL: A startup which offers users a platform to track, benchmark and optimize social media performance.

STARTUP: Quintly (German startup)

WHAT I LIKE

Core Idea – A social media analytics platform.

Features – Users can use the platform to benchmark their social media performance, get smart analytics, get customized reporting, get detailed information on key influencers and an option to export data.

Free Trial – Users can try out any of the paid plans for 14 days before purchasing.

Social Analytics API – The data from the app can be integrated easily into company dashboards. Also there is a chrome extension.

CONCERNS

Competition – Social media analytics is probably one of the most competitive markets, though a very big one. Scaling beyond a certain level would be very challenging.

Startup Model – Digital Media Advertising for Taxis

THE MODEL: A startup which offers disruptive digital media technologies for the taxi market. The startup has 2 products – ITaxitop (world’s first industrial grade LCD taxitop technology for taxi roofs) & CabWifi (world’s first industrial grade mobile public wifi device for taxis, with a unique ads-for-access user experience).

STARTUP: Eyetease (British startup)

WHAT I LIKE

Core Idea – A startup offering digital media advertising solutions for taxis.

Benefits to Users – Businesses can run better targeted advertisements. Targeting can be based on location, time or demographics. Ads can be customized so that they command maximum attention.

Niche- Targeting taxi advertisement allows the startup to better understand the dynamics of the market and hence gives them an opportunity to give better value to their customers.

CONCERNS

Competition – The taxi advertisement market is a very old market which has been tried by a lot of players. Creating sustainable value will be a challenge.

Startup Model – Next Generation Mobile Advertising

THE MODEL: A programmatic sensory advertising platform which creates and distributes advertising messages which using mobile technologies to engage people’s senses.

STARTUP: Adludio (British startup)

WHAT I LIKE

Core Idea – A next generation mobile advertising platform which aims to touch people’s senses.

Benefits to Users – Businesses use sensory advertising to increase engagement and hence get a better return on advertising spend.

Mobile First Technologies – The startup uses technologies such as 3d, haptic, gyro, touch to engage customers for different brands. Some examples include Impact (using creative optimization and video enhancement), Touch (using touch to deliver messages), Swipe, Vibrate & Shake (using movements to engage customers) and 3D (for better user experience).

CONCERNS

Competition – The Adtech space is a very competitive one with a host of startups offering different features to acquire customers.

Startup Model – Insights for Websites & Apps

THE MODEL: A platform which offers research tools to understand traffic insights about any websites or apps. Users can monitor their websites, understand sources of traffic, compare competitor sites and identify growth areas.

STARTUP: SimilarWeb (British startup)

WHAT I LIKE

Core Idea – An analytics platform offering website/app insights.

API – The data can be added to tools like Saleforce, Marketo etc. Also a browser extension is available which can be added to the toolbar.

Freemium Model – Users can view their own website analytics for free. There is a pro plan which gives advanced insights and helps compare to competitor websites.

CONCERNS

Competition – Website analytics is a very difficult market to penetrate. 

Startup Model – Social Network for Learning Languages

THE MODEL: The platform is the world’s largest one for language learning. It encourages collaborative learning by offering users an opportunity to learn and practice any language (out of the 12 languages offered) guided by the assistance provided by native speakers.

STARTUP: Busuu (British startup)

WHAT I LIKE

Core Idea – A platform combining training and networking for learning a language.

Benefit to Users – Users can learn and practice a language using the content. Also they can connect with native speakers to improve their skills. Any user hence is a learner as well as a tutor (of his.her mother tongue).

Freemium Model – The startup offers free and paid plans to access the various language courses. Users can start using the service for free and upgrade once hooked onto it.

CONCERNS

Competition – Online language training is emerging as an intensely competitive space. Busuu, using networking and training, is doing a good job of differentiating itself though.

Startup Model – Brain Games Online

THE MODEL: A brain training platform which works on improving mental well being through training based on neuroscience.  

STARTUP: Memorado (German startup)

WHAT I LIKE

Core Idea – A brain training gym for better mental well being.

Benefit to Users – Users are assessed on where they need to improve. Brain games are then devised and used to improve their mental well being and brain connectivity.

Research Oriented – The startup has strong ties with brain training experts and neuroscientists. Also it has now launched a “Global Cognition Initiative” where it is trying to connect neuroscientists from all over the world to create collaborative world class research on the brain.

Free Trial – Users can try the service for free with an option to upgrade to advanced paid plans.

CONCERNS

Hidden Need – Since this is a need which is not apparent to users, get users to try out the service will be difficult.

Market Size – Since the need is hidden and a lot of customer education is required, the market size seems uncertain and limited.

Demand Forecasting for a Business

Demand forecasting simply refers to forecasting demand/sales patterns of a company. Since it is a forecast, we cannot be accurate but should always try to minimize the difference between our forecasts and the actual.

Why can forecasts not be accurate?

Change is the reason why forecasts will always vary from the actual figures. These changes may be in the company’s strategy, operation, external conditions such as policy, economical conditions, weather conditions and anything which affects the company or its market in any way.

So what do we need to forecast?

Forecasts are broadly based on 3 things – past performance, changes happening or anticipated and future growth plan. The past performance of the company is analysed and extrapolated to get some basic forecasts to start with. Any changes we are seeing currently or are anticipating are then factored in. Finally, the company’s future investment and growth plan should be accessed and factored in to arrive at the final forecasts.

Forecasting can be for the short term and the long term.

Short term forecasts refer to forecasts for a period of upto 1 year. Here seasonal cycles and growth patterns are assessed to arrive at forecasts which are primarily used in tactical decisions.

Long term forecasts revolves more around long term vision and capital planning of the company. Setting up new units, covering new locations etc. are generally accounted for in these forecasts.

Forecasting happens at 4 levels.

Macro Level – Here the overall economy of the country, the business is operating in, is assessed.

Industry Level – The industry’s trends and growth are assessed.

Firm Level – The overall company is assessed, including all its divisions.

Product Level – Here the product and its growth potential are specifically assessed.

Tools used for forecasting.

There are a number of statistical and non-statistical techniques used for demand forecasting. A summary of these tools is presented in the infographic below:

The infographic has been taken from this article, which also gives details about each technique individually.

Startup Model – Providing Key Insights from Non-Fiction Books

THE MODEL: A startup which takes non-fiction books and creates blinks, which are basically 15 minute reads highlighting the main concepts.

STARTUP: Blinkist (German startup)

WHAT I LIKE

Core Idea – A platform which provides users with bite sized reads highlighting the main concepts of non-fiction books.

Benefit to Users – Now users can learn from books without having to invest a lot of time in reading them.

Networking Aspect – Users can connect with friends to see what they are reading and highlighting. This further creates user stickiness.

Free Trial – Users can try the service for free for 3 days. This reduces the barrier for users to try out the service and can upgrade if they see value in it.

Non-Fiction Books – Fiction books and storybooks are read more for the love of reading. Non-fiction, on the other hand, are primarily read for the learning we can derive from them. This model, hence, is more suitable for non-fiction books.

Integration - The app is integrated with popular apps which are being used for reading and collaborating. Users can send their reads to Kindle and read them there. Also users can save any interesting snippets and sync them to Evernote.

Startup Model – Collaborative Writing & Publishing

THE MODEL: A startup that makes the entire process of writing, editing and publishing scientific documents easier and quicker.

STARTUP: Overleaf (British startup)

WHAT I LIKE

Core Idea – A collaborative writing and publishing tool.

Features – Users can collaborate with other authors real time. Authors can publish immediately and submit to the journal of choice. To reduce editorial and review turnaround times, real time editing, change tracking and project lifecycle management features are provided.

Not Just for Papers – The platform can be used to collaboratively make papers and presentations with graphs, tables etc.

Defined Use Cases – The startup, on its website, has clearly defined the utility of the product for different users such as teachers, universities, publishers and enterprises.

Freemium Model – The startup uses a freemium monetization model, where it gives users a host of extra features in its paid plans. This makes it easier for users to try out the platform before paying for advanced usage.

CONCERNS

Competition – A number of collaborative writing tools exist which will give the startup a run for its money.

HALLLP’S JOURNEY – The Initial Marketing Plan

I have been working on testing out the prototype of Halllp. Also working out how to market is on my mind. Since I have very little money, identifying the right tool to market is crucial.

After a lot of deliberation, I feel the following may be the way to go, atleast in the very initial days.

Facebook – Student’s are on it and filtering is easy. Hence, this would be the most important tool in the early days.

Twitter & Linkedin – These networks also have a good population of students from Tilburg.

Emails – We have worked out some hacks which can be executed through emails. Getting emails of students from the college administration would be difficult though.

Offline Events – We will try to replicate the Hallp experience offline by organizing fortnightly/monthly events where buyers and sellers of products/services can come and interact, just like they do online.

Student Groups – I would be joining as many student groups and spreading the word.

Startup Model – Mobile Based Brain Training

THE MODEL: A startup which combines tech, gaming, education and science to let users challenge their cognitive skills and train their brain in a healthy and fun environment.

STARTUP: Peak (British startup)

WHAT I LIKE

Core Idea – A brain training platform for users using a mobile phone.

The Brain Gym – Users are given brain workouts in the form of small games which they need to complete on a daily basis. This makes the app interesting and keeps its users engaged. Users can assess themselves, set goals and workout.

Training Plans – The plans are designed in collaboration with leading scientists and universities.

Freemium Model – The startup has a professional plan which is chargeable and gives users access to all training plans and features of the app.

CONCERNS

Creating the Need – The startup is trying to create a need and lifestyle for users. With time being a scarce resource for most, acquiring new users would be a difficult task.

Startup Model – Making Selling a Small Business Easy

THE MODEL: A startup which helps users sell their small businesses quickly and at lower costs.

STARTUP: MyBizDaq (British startup)

WHAT I LIKE

Core Idea – A platform for selling small businesses.

Value Additions for Users – Users can upload their business free of cost and use their dashboard to talk to buyers, arrange meetings and negotiate offers. Also a basic business valuation tool is provided for sellers.

CONCERNS

Competition – The startup faces competition from offline players such as business consultants, banks etc.

Revenue Potential – Since the business charges no commission on an already small market, the potential revenue scalability is a concern.

Startup Model – Recipe Ingredients Delivery

THE MODEL: A startup which delivers ingredients of curated recipes to users every week. Users are sent recipe cards and ingredients so that it becomes easy for them to cook their meal.

STARTUP: Gousto (British startup)

WHAT I LIKE

Core Idea –Startup delivering ingredients for recipes.

Curated Recipes – The recipes are curated by professional chefs and users can chose the recipes that fit their taste. Also recipes are designed and changed every week.

Packaging & Delivery – The delivery boxes use special wool insulation to keep the food warm. Also users can specify where their box can be left, thereby ensuring that they do not have to wait for delivery.

CONCERNS

Competition – A lot of ingredient delivery businesses have started up lately. Also the business will have to complete with regular food delivery startups, which have an advantage of users not having to cook at all.