How long should be a Startup stage?
Created on 2020-01-04 10:47
Published on 2020-01-04 11:10
Before we talk about Startups and Ventures let us ask a question from our own life, when should a youth become financially independent? Youths can express their views in comments. A parent of such youth have some views, some of them say youth should earn or borrow while persuing their higher education, some say youth should earn after they start job, some say whether job or business they should survive on their own after basic education, some say no worry, we shall support youth till they become independent etc etc.
We have similar answer for a question How long should be a Startup stage? Those persuing Startups or who have crossed startup stage can again express their views in comments. One of the biggest cause of startup failure is that entrepreneurs don't practice these hard questions on their life before they jump on startups.
Entrepreneurs are compelled to loose a claim that they are startup generally after 1000 days (a general view). If you are in business for more than 1000 days, ask yourself a question, Do I earn a decent Return on Equity? if not then let us consider these ventures as Startups with Special Abilities instead of Startups with disability. This is so because every venture may have some or the other abilities used most.
Now how long can a Startup with Special Ability survive? Most of the businesses fail within 5 years so Startup with Special Ability has maximum 2 more years to become able or perish. Readers are welcome to express their views on this irrespective of whether they are promoters or employees. Emloyees as well as promoters are churned when a business fails and throw them directionless about how they should correct this anomaly in their next venture/ job and how can they lead or work with business with Special Abilities.
Do you want to brainstorm the duration about your startup's stage or about your specially Able Startup? Do these simple steps
1. A venture has many stakeholders, understand their expectations. Please remember Entrepreneur cannot set expectations from their ventures rather they should deserve those expectations if any.
2. Every venture has to face the test of economics of Return on Equity i.e. compete or perish. Size does not matter, your competitiveness matters. The duration of stage matters little if you are competitive in meeting stakeholder expectations. Do not pretend to be happy with Return on Equity being lower than the risk free rate of return as you will not be able to manage stakeholder's expectations moving forward. It is time to introspect and innovate.
3. If your venture is with Special Ability identify ways to build on Special Abilities, collaborate with those who have the missing ones. Nobody is perfect in the world neither humans nor businesses and certainly not permanently.
4. Seek mentoring of qualified and experienced professionals, it makes the difference once you are open to your diagnosis with own introspection and seek mentoring support. Stitch in time saves nine.
Many best wishes to your ventures which you own or run or manage or in which you work as an employee.
Madhukar Talele