STARTUPS, CEO’S, DIRECTOR’S, INVESTOR’S will have become part of your daily life whether you are a salaried guy or a businessperson. But In today’s business ecosystem, there is some sort of fakism which is related to these words. This fakism is created by us to give ourselves a shelter of convenience and a fake pride.
1. STARTUPS ARE FAKE??
The term ‘start-ups’ has actually lost its essence. What startups mean in layman language? Start-up is a business with a unique business model, unique revenue model, unique product/services which might include the introduction of new technology. But that’s actually not a case in Indian Eco-system.
Till now, there are approximately 50,000+ businesses which are recognized as startups by DIPP (Department of Industrial Policy and Promotion), but whether all of them meets the startup definition or not is a big question.
Most of the businesses which are recognized as startups actually don’t meet any criteria of startup definition. On startup India portal, you will found thousands of digital marketing agencies, normal trading businesses and other businesses registered as startups but there is no one to ask them what unique proposition they are offering?
Nearly 60-65% of all business which is recognized by DIPP actually does not meet any startup criteria. This raises the biggest question of some spot of fakism on Indian Start-up Ecosystem.
Next time, whenever you meet any of your friends, relatives who are commencing any business, just ask them what they are actually doing? And in 99% case, the answer will be “Start-up”, that’s the level of fever startup-ecosystem has actually created among people.
Remember, even a normal businessman can be a great entrepreneur why you need a term ‘STARTUP’ to associate with us to become great.
2. FAKE Director’s AND CEO’S
On average, nearly 13,000+ private companies and LLP’s are getting registered every month in India. Nothing wrong with that. But what’s getting wrong with some people’s mind is that they actually don’t have any business (means they don’t have any revenue model, their product doesn’t have any demand, they don’t have customer) but before analyzing these factors exists in their product/service or not they incorporate a company.
But why they incorporate a company? Because there is a strong desire to called oneself a CEO, director and Managing Partner of a Company/LLP. I called such people who don’t have a business but have the company incorporated as Fake Director’s and CEO’s.
Why can’t we begin with your business execution with proprietorship (with mutual understanding in case of more than 1 person involved) to cut our initial cost as in early stage, even small saving proves to be a major helping hand.
Why don’t we brainstorm our ideas before spending thousands on incorporating a legal entity which we will be forced to shut down in a few months/few years due to lack of original ideas?
3. WE NEED INVESTOR’S
Almost all the successful businesses which are set up in the last few decades hardly have any investors at an early stage. But today we need investor’s even before we are clear about our business ideas. We have the most simple excuse why are not a successful entrepreneur/businessperson because there was no one with us who can invest in our ideas.
But we should be very clear on this part, no one has ever got the investor until they have worked off their ass to reach a particular level wherein their action speaks about their success.
Still, have an investment excuse, ask your father/forefather how to do business, because I am quite sure they might not have waited for any investor?
What’s your view about the same, mention in comments below.
The author is engaged in the business advisory to startups and can be reached @ firstname.lastname@example.org