The Indian funding scene (globally as well) is not so bright for young startups as of now. Though we are seeing a lot of investment right now, the difficulty in raising money for companies is growing by the day owing to the large number of people starting up as well as due to the high and at times unreasonable valuations we are seeing. Sustainability of business is a big question and investors are becoming increasingly conservative and cautious in investing their money.
At such times, it becomes imperative for entrepreneurs to follow a conservative approach and handle cash well. Some tips include:
- A lot of entrepreneurs plan from one funding round to the next one. Since getting money is dicy, entrepreneurs should manage their money judiciously and spend as and when required.
- Mass hiring is a strict no-no. This is what happened in the last 2-3 years and now most startups are downsizing.
- Sustainability is key. Try to build a sustainable business with a clear revenue model. We should not rely on funding to sustain the business.
The startups which survive the lean periods are the ones which will sustain.
At such times, it becomes imperative for entrepreneurs to follow a conservative approach and handle cash well. Some tips include:
- A lot of entrepreneurs plan from one funding round to the next one. Since getting money is dicy, entrepreneurs should manage their money judiciously and spend as and when required.
- Mass hiring is a strict no-no. This is what happened in the last 2-3 years and now most startups are downsizing.
- Sustainability is key. Try to build a sustainable business with a clear revenue model. We should not rely on funding to sustain the business.
The startups which survive the lean periods are the ones which will sustain.
No comments:
Post a Comment
What do you have to say about this post?