Startup’s — What we should not be doing? — Cloud Technologies

Once we come up with an idea, We start thinking, analyzing, digging deeper and deeper. The initial motivation, zeal and passion run high. Capturing notes of all the wonderful functionality/operations, to automate, thinking this is the holy grail and how it is going to change the entire domain and the industry. We start gathering information and details and speak to a few friends and relatives. If any negative points are raised, we are ready with all the answers, trying to justify what we are doing is perfect or tend to ignore the contradictory evidence or suggestions. We are completely consumed by that one idea and are not in any position to understand it from any other perspective. There is a mental block, which obstructs clear thinking.

We start writing down the high-level details, may hire a business analyst or reach out to a software firm/consultant to start developing the product.

Time to market becomes so crucial that we directly jump into the development phase, implementing every functionality and feature, we do not want to leave anything for the next phase and try to squeeze in all the features at one go. Requirements gathering, analysing, thinking about big and wonderful ideas and tasks, is one thing and implementing the same and going through multiple iterations is completely another thing. Things start going in circles, the initial timeframe we thought about does not seem enough, there may be a blame game between all the stakeholders, the morale runs low, and the original vision starts looking like a far fetched dream, However, let’s be positive, if we are lucky then the product may be delivered on time and is completely developed as per our requirement, but soon we realize that this is just a beginning.

The journey did not start when we completed the product, but when we are ready to start selling the product. After rolling out the product in the market slowly we realise that reality is something else, what we thought of as an extraordinary idea is not matching reality. We go back to the drawing board, sit with the stakeholders, tech team and realize that the system was not designed to keep customers and issues faced by customers in mind. We tried to solve real-life problems using the hypothetical product, we envisaged, which now needs to be customized as per a completely different ground reality. It is like revamping a new car, which we just bought or like stitching, adjusting a shirt we just bought to fit our size.

This is how most startups work, hence the high frustration rate and high failure rate. Now what’s wrong with this approach

What is the right approach then? Let’s dive deeper -

• An idea is just an idea — Continuous thinking over time develops a conviction. No doubt conviction is very good but a conviction on a wrong idea is like a winning horse running in the wrong direction, or like putting a ladder on a wrong wall.
• Reality is different — A simple retail outlet having stocks in inventory is a straightforward business, add stock to inventory when you buy, reduce it when you sell from the retail shop. Simple plain inventory system right? Now add more channels to it, sell the products via Shopify (eCommerce) store, sell it on Amazon, Flipkart. How do you track the inventory? Note there is a penalty if a product is displayed on Amazon and you are unable to fulfil it, what about goods returned?. A simple inventory management system with just an introduction of channels has become complicated, We are not even talking about how the customer pays, whether it is by credit card, bank, buy now pay later, EMI’s etc. So the truth is, reality is completely different.

What is the right approach then? Let’s dive deeper –

• Vetting of an Idea — Whenever you come across an idea, ensure you learn about the industry, major established players and startup’s in the industry, their business model, where the gap is, how you can add value. Why would someone buy from you, What is your unique selling proposition (USP)? Think about everything that can go wrong, and trust me things will go bad, identifying and mitigating risk should be given the highest precedence and how to overpower, decode or circumvent the problem, everything should not only be well thought through but also sufficiently documented.
• Talk to Industry Specialist — Talk to someone in the industry, if possible take him onboard either on a payroll, consultancy basis or take him as a partner. Discuss everything you have in mind and be open-minded, think and see if it still makes a business case.
• Opportunity Size — If the opportunity size is good then there is enough room for all the players in the industry to make money. However, if the industry is saturated with cut-throat competition, there is no point in going ahead. It is wise to be a large fish in a small pond than being a small fish in a large pond. If the opportunity size is huge, the growth and runway will be huge with limited competition.
• Me too Product — We often look at the competition and, if impressed by a specific company, we keep adapting to what they are doing. Eventually, our products and services becomes a me-too product, with the same look and feel and similar services. There is nothing wrong with looking at competition, however, don’t kill your creativity. If the opportunity size is big enough you will still make money in a me-too product, however, by following a specific company we have marked our own boundaries and have restrained ourselves to think “Out of the Box”.
• Build a Team — This looks effortless but it is very challenging to build a team, especially when you are on a low budget. Money can buy everything but with a little hike, team members will switch jobs. Large companies can take attrition but for startups, it’s a do or die situation. Learn to lead yourself before you start leading others. One can build a team only with a shared vision, long term alignment of goals, shared values, mutual trust, respect and tenacity to build something great out of nothing. The sheer joy of creating something out of nothing can pierce through all the problems and work wonders. Some people like simple routine jobs with clarity & clear instructions and some thrive in challenging environments. Building something is an uphill task and it requires people who enjoy adversities.
• Go to Market with whatever you have — Time, money and resources are always scarce(In non funded startup’s) Rather than developing everything at one go. It is far more advisable to go to market with whatever you can develop and share it, with the end-users and create the product iteratively, by constantly seeking inputs and being in contact with the end consumers. This mode of developing a product iteratively is one of the best strategies, as the final product would be an exact solution, addressing all the pain points of the end-user. This customer-centric approach of building a product automatically mitigates almost all the risks.

Originally published at https://cloud-technologies.in.