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Startup India got started in 2016, and by 2018, had been proclaimed a success by the Niti Aayog’s then CEO. As a startup, let alone an ecosystem, takes more than two years to succeed, perhaps he was using the number of startups getting registered (nearly 10,000 within two years) as a yardstick. Registering a business with Startup India, however, is just the beginning. In absolute numbers, India has emerged as the world’s third largest startup ecosystem (with 115,000 of them, as per government data), but there’s a long way to go.
Startup India got started in 2016, and by 2018, had been proclaimed a success by the Niti Aayog’s then CEO. As a startup, let alone an ecosystem, takes more than two years to succeed, perhaps he was using the number of startups getting registered (nearly 10,000 within two years) as a yardstick. Registering a business with Startup India, however, is just the beginning. In absolute numbers, India has emerged as the world’s third largest startup ecosystem (with 115,000 of them, as per government data), but there’s a long way to go.
As Brian Dovey’s book title says, The Idea is the Easy Part. Given that more than 95% of startups don’t survive five years (between 80-95% in India, depending on how you cherry-pick your data), we can’t agree more. Part of his motivation for writing this book was that myths and false impressions about entrepreneurship and startup culture had continued to spread. Fans of reality TV shows like Shark Tank still think they can make a fortune from a clever idea and a slick elevator pitch. And detractors really think the startup world is full of egomaniacs and dishonest ‘vulture capitalists.’ Both camps are mistaken. As it stands, the startup world is a captivating realm, filled with innovation, ambition and the promise of disruptive change—even if copied and pasted. It is also a world rife with myths and misconceptions that can mislead aspiring entrepreneurs. That the idea is the most critical aspect of a startup’s success is one such myth.
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As Brian Dovey’s book title says, The Idea is the Easy Part. Given that more than 95% of startups don’t survive five years (between 80-95% in India, depending on how you cherry-pick your data), we can’t agree more. Part of his motivation for writing this book was that myths and false impressions about entrepreneurship and startup culture had continued to spread. Fans of reality TV shows like Shark Tank still think they can make a fortune from a clever idea and a slick elevator pitch. And detractors really think the startup world is full of egomaniacs and dishonest ‘vulture capitalists.’ Both camps are mistaken. As it stands, the startup world is a captivating realm, filled with innovation, ambition and the promise of disruptive change—even if copied and pasted. It is also a world rife with myths and misconceptions that can mislead aspiring entrepreneurs. That the idea is the most critical aspect of a startup’s success is one such myth.
The notion that the idea is everything has led many aspiring entrepreneurs to believe that a novel concept alone guarantees success. More than the idea itself, a genuine insight into a customer pain point is critical. This may explain why 39 of the 54 Indian startups that published financial results for 2022-23 reported a combined loss of ₹26,000 crore. Usually, 20% of startups fail in the first two years.
The second myth is that one can become an overnight success. The media often sensationalizes such stories, giving the impression that startups can achieve rapid growth and great valuations almost effortlessly. In reality, success involves years of hard work, perseverance and overcoming countless challenges. But exorbitant valuations get more popular attention than value creation.
Another misplaced belief is that one needs a unique idea. While uniqueness can provide a competitive advantage, it’s not a pre-requisite for success. Many successful startups entered established markets by offering superior execution, better user experiences or more efficient solutions. For example, Slack and Zoom didn’t invent team communication, but they redefined it by focusing on useability and integration.
Some seem to think that more funding will assure success. Securing funding is pivotal, but that’s it. Running out of cash is one of the top reasons startups fail. Mismanagement of funds or a lack of sustainable revenue will lead even well-funded startups to collapse. Edtech firm Byju’s is faltering despite being heavily funded. Funding should be used strategically to support growth and development.
Another myth is that successful entrepreneurs never fail. Failure is common and often considered a valuable learning experience. Many successes, including Steve Jobs and Elon Musk, have faced setbacks and failures before achieving what they did. An ability to learn from failure and persevere is key.
Another piece of misplaced wisdom is the 24/7 work requirement for entrepreneurs. The ‘hustle culture’ myth suggests that they must work around the clock to succeed. While dedication and hard work are essential, burnout is counterproductive. Maintaining a healthy work-life balance is crucial for sustaining creativity and long-term growth.
A final misconception is that entrepreneurs are solitary geniuses. In reality, successful startups thrive on collaboration, diverse teams and mentorship. Seeking guidance from experienced mentors and building a strong team with complementary skills are vital.
In our experience as startup mentors, the following are more critical than just the idea if startups want to be among the 5% that survive their first 5 years:
Execution trumps the idea: The success of Airbnb shows how execution outshines the original idea. Initially, its founders struggled to attract users. Then they decided to personally meet hosts, take professional photos and provide a more personalized experience. This transformed the platform.
Market validation is key: The importance of market validation cannot be overstated. Startups must gather real-world data, seek customer feedback, and adapt their ideas accordingly. Uber emerged after its founders validated the demand for a more convenient and reliable transportation option. BigBasket (part of the Tata Group) succeeded because it focused on a particular pain-point for customers: an unsatisfied need for reliably quick groceries delivery.
Timing is crucial: Timing often plays a pivotal role in startup success. Instagram, initially a location-based app called Burbn, pivoted to become a photo-sharing platform at the right moment, capitalizing on a boom in smartphone photography. WhatsApp, which became the darling of over a billion in their daily lives, came just when texting was growing, cumbersome and costly.
Team dynamics matter: Creating the right team is as critical as having a great idea. The success of Apple goes beyond Steve Jobs’ visionary ideas; it relied on a team that could execute those ideas effectively.
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