Statistics prove that out of 100 start-ups launched globally, 90% of them fail in the first 3 years of their inception, and only 10% manage to grow and sustain. What is the secret behind the Start-Ups that not only survive by grow significantly.
KINDUZ Global CEO, Mr. Pavan Kishore Kota Subramanya shared 4 secrets of successful start-ups with a large audience consisting of young and budding entrepreneurs at the TECHNE Summit in Alexandria, Egypt.
These secrets are:
1. I-P-O-S (Input – Process – Output-Sales):
Input-Process-Output-Sales are the 4 vital functions of an organization which are interlinked to each other. The most successful start-ups are the ones which eliminate at least two of the four components of I-P-O-S. He explained the concept with an example of building a Hydro power plant near the Himalayan mountains. Such a power plant naturally eliminates at least two of the four vital components.
- Abundant water from glacier melting (eliminate input)
- Use a high-quality turbine (eliminate process)
- Electricity is automatically generated (eliminate output)
- Existing shortage of electricity in the country (eliminate sales)
2. The Horse Story:
Second success factor behind start-ups is how the CEO chooses to drive his/her organization. Running an organization can be compared to a horse race, where the CEO can choose to adopt one of the following models:
- Run like a horse: This scenario is where the organization grows by performing the business operations like sales, marketing, operations, finance, etc itself. This is a typical start-up scenario, where the growth of the start-up is dependent on the internal capability existing in the start-up.
- Ride a horse: This scenario is where the organization creates a platform, where they do not worry about the operations as it is outsourced or taken up by a vendor who provides the required services. For example: Taxi aggregators like Uber fall in this category.
- Bet on winning horses: This scenario is where angel investors invest in organizations and provide capital for business operations, usually in exchange for convertible debt or ownership equity.
With each sequential model the level of strategic thinking increases, in addition to the risk involved. At the same time, the level of returns also increase dramatically as one moves from Model A to Model C. Entrepreneurs who can balance the risk along with strategic thinking tend to win this race.
3. Strategic Thinking 101:
Given the distractions in the industry today, it is very easy for entrepreneurs to lose their focus and diversify into many products/services. It is therefore, very important for start-ups to stay focussed on a single purpose. “Strategy is more about what not to do, than what to do”. Strategic decisions should be taken bearing in mind what can be eliminated and what steps should not be taken.
4. Strategic Thinking 102:
Strategic thinking is about asking the right questions. The more questions we ask, the better answers we shall get. Successful organizations in today’s world are the ones which questioned “How to” instead of “Why now”.
KINDUZ believes in nurturing talent. If you wish to make a difference in today’s world, while simultaneously making money reach out to us at email@example.com
Stay tuned for more updates from the event.
About the Event:
KINDUZ Global CEO Mr. Pavan Kishore Kota Subramanya was invited as a Speaker at the TECHNE Summit on 1st October 2017 in Alexandria, Egypt. The Summit which carries the slogan TECHNOLOGY – INNOVATION – TALENT acts as a platform for international global players to share experiences, wisdom, observations, predictions and opportunities.