During last few months I have met many different type of startups and wannabe entrepreneurs. There are some common characteristics which define almost every entrepreneur like determination, positive attitude and strong will to do something on own.
I have seen that people have different set of reasons to start something. There are a few major categories under which a wannabe entrepreneur starts his business. I tried to understand various situations which leads to a startup. My observations are limited in the sense that I haven’t yet met hundreds of startups, and I would like you to add your ideas with mine over here.
I’m focussing on 3 different ways to startup based on what I have observed-
What an Idea!
The most common reason for starting an entrepreneurial venture is that ‘Spark’! The idea which you think will change the world. The idea is first tested on a part time basis, either with studies or with job and when the need for the idea is understood the plan is taken further.
The only problem with this approach is that it takes some time to get the idea on canvas, as one become’s very much obsessed with the idea part itself. But once the idea is proven at different platforms and is implemented based on feedback received during the period the chances of success increases.
The risk part is also a bit reduced as one generally gets some good backing from influential people during the idea valuation stage. Ideal age for starting up is 20-35 in this case.
Companies like Google started on this premise only.
2. I’m Fed up of this job!
The other reason for starting up is the frustration and inability to execute your own ideas in the office. You are talented and have hell lot of ideas which you think are great. Then you get frustrated to the point that you decide to quit your job, and start something on own. But suddenly you understand that the ideas you could execute in your office are no longer viable keeping in mind the limited resources. So you try and find out something which is related to your work profile and is doable and start working on same.
The main disadvantage is that there is tremendous pressure to prove that you can ‘generate’ ideas which will click in near future. But on the other hand, the advantage lies in the fact that you become 100% dedicated towards the idea of starting up.
The risk factor is higher in this case comparing with the above, simply because the idea is not proven yet. Ideal age for starting up is 25-35 in this case.
Mr. Murthy and his Infosys is a great example where the idea for starting up came after he left his job at Patni.
3. I know how things work!
This is the least risky path which most of the industry veterans choose. They already have huge bank balance and sufficient experience in relevant fields. At one stage they get some high profile people along, set up a fund and start generating money through leads which are already in their contact lists. Such type of entrepreneurs have almost nothing to lose and they start a new business mainly as a hobby and to get a bigger bank balance.
The disadvantage here may be the lost spark, which leads to banal ideas which are already proven! But the advantage is the relevant experience and good client base.
Idea age for founders here is 40-50+.
For e.g. Jagadish Khattar left the post of MD at Maruti and has started ‘Carnation’ which is a multi-brand service centre for Cars. Although his idea is unique but the fact remains that he’s started off in an industry already well known to him.
I know there may be other view-points too, and I’m very much excited to hear them from you :).