Did you hear this any where? may not be the amount mentioned but the story line might be similar. As soon as some one reads the success story, he immediately decides to quits his job and become entrepreneur. Please be on hold, understand the facts of starting up before becoming a entrepreneur.
There is a general tendency that people often think that with less or no money they can build a massive business in no time. While the Idea excites them to startup and the future looks promising, but in reality the success story is very different than what we presume. Entrepreneur always starts a business with assumptions and it is very important to reach practicality before starting up. These are some facts you need to understand before starting up.
“Build company with little or no money”
General tendency with first time entrepreneurs is to undermine the requirement of money as they believe that the business needs less or no money, even if it needs more money I will generate as revenue from first month it self.
But the in fact, if you are seriously looking to build a good business it needs decent amount of money and the imagination of building revenues from day 1 is just a dream.
My first bootstrapped business I planned 6 lac as my personal investment, all the money went off in 3 months and I took additional 20 lac as personal loan. Even that lasted for less than 1 year and I had to raise few crores from investors to sustain. Though I assumed revenue will come very early it took two years to start seeing a decent revenue. Business always requires money in some form unless you are keen to risk lot of money, do not venture into one.
“I can Build Fortune in no time”
Apart from money a good business takes time to become profitable, on average a business will take 5 years to 10 years for getting to the stage of profitability. All the biggest unicorns in India like Flipkart, Zomato, Snapdeal, Paytm etc are still loss making and profitability is not visible for at least next few years. Do not start unless you commit between 5-10 years of your career for your startup.
In recent years we have seen many young startups shutdown their business in less than 2 years of starting up. The real reason is “entrepreneur who wants to see spiraling growth and build fortune often gets discouraged by the time it takes to grow the business. The dream of building fortune in short time, leads you to a direction of failure.”
The death of any business comes from your mind. If you commit time, money and passion there will be no reason for your business to fail and you can turn it around any time.
Finally do not get carried away by success stories there is more to learn from failures.