Saturday, March 27, 2010

Most business are created & sustained without VC funding

VC funding is a mirage. Don't waste your time. There are 45 million businesses in India less then a few hundred may be get VC funded.

People leave even big brands for a little more money don't count on people's loyalty. Count on your vision and your own commitment to it. Find people to subscribe to your vision.

Sometimes we are so excited by our ideas that we can't stop ourselves from pursuing it. That is what entrepreneurship is about. However take one idea at a time. Pick-up the best one.

Classify your product into the cash cow, the drain and the star. Be the Vishnu (preserver) of the cash cow. Be the Shiva (destroyer) of the drain and Bramha(creator) for the star.

For a small company it is best if you are focused (single product company). Meditate to sort out the confusion.

Learn to do more with the cash flow. Figure out ways to cut costs. Maybe you can reduce your staff and outsource the intermittent work. It can save you a lot of money.

Build a franchise of loyal customers and partners(resellers). These are your VCs.

VC ecosystem in India is under developed.

VCs in India are more likely to invest in mature companies (with revenues of ($5 million or more) than early stage companies.

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