Herd mentality and Indian startups

I’ve noticed the herd mentality is becoming popular when it comes to Indian startups. Let me explain what I mean.

One startup enters a particular domain with all fan fare and great buzz. Within no time you’ll come across news about 2-3 more startups launching in the same domain. Plenty of examples to illustrate my point:

1) Seventymm was the first entrant into the online DVD rental market. Suddenly you have Madhouse, CatchFlix, ClixFlix and several others who follow suit (For crying out loud, you dont have these many players in the US too)

2) Video Sharing for India - I dont know which one launched first. But within no time, you have AapKaVideo, MeraVideo, ApnaTube, VideoDubba

3) Shaadi.com came first. Then there was BharatMatrimony, JeevanSaathi, Badhai, MeraSathi, timesmatri

4) There’s indimoto, Carwale, automartIndia, AutoIndia, IndiaAutoMall (again - unsure which came first)

5) MakeMyTrip came first. Then came a D-E-L-U-G-E : Yatra, TravelGuru, ClearTrip, FlightRaja, Arzoo and numerous others

6) Picsquare was first. MeraSnap, PhotoJagat, PhotoMasti, iTasveer, SnapGalaxy quickly followed suit

7) Fropper and Orkut struck first. The next morning you read about Yaari, iBibo, MingleBox, Jhoom, SaffronConnect

There’s HumDigg, IndianBytes, NewsCola, PutVote, IndianPad, IndiaMarks (unsure which was first)

Is this healthy for the Indian startup scene ? Is this a good phenomena? Is the Indian startup scene lacking originality and innovation (Not to take away anything from the numerous innovative ones out there) ? One can argue that some of these markets have room for more than one player. Also, considering that majority of the sites listed above are in their infancy, the market will evolve and only the fittest will survive.

I’d like to hear what everyone has to say about this ‘herd mentality’. I’m planning to do a follow up post to this sometime later.

Note: If you find any of the links above are broken, please feel free to point it out. Also, I havent intentionally left out the other players in their respective segments.

Why 99% of Entrepreneurs Fail: Because they don’t do anything

I came across this interesting blog post by Jessica Mah on Jessica Mah Meets World and I just had to share it with you. So, here's Jessica for you :

I definitely have highs and lows. Often, I’m at the high of a new idea–one that I think can be REALLY promising. This feels good. Really, really good. Mmmm. It’s so happy and life is worth living. But then, swinging to the lows, which are filled with disheartening moments of despair where I think to myself: it’s not worth it, everyone’s doing something, there’s no way to compete, even babies have their own pet projects, *kills self in self-hating moment*
- Anonymous Blogger

I read that quote a few nights ago, and I practically laughed myself to sleep. I love that quote, because it’s true (and false) in oh so many ways. Many of you have had the pride and joy of thinking that you know the next billion dollar idea. For scholars, a similar feeling is found when you come to a philosophical epiphany. The high is so great, that it’s difficult to get your mind onto anything else.

But also, as many of you know, that feeling sometimes hits its rock bottom when you think that your business idea won’t work and your peers find the concept stupid at best. This is where I come into disagreement with the writer of the above quote — I don’t understand why people won’t even attempt to make their business idea work. If they’re convinced that their idea is the “next Google”, how could it hurt to at least disprove that it is?

There are three types of amateur entrepreneurs out there, and in my young life, I’ve been every single one of them. By coming to terms with my failures, I’m more prepared to classify which type of amateur entrepreneur I am, and thus preventing myself from failing in the same way again.

Type 1 Amateur Entrepreneur: All ideas, no implementation.

Let’s admit it. All of us have at some point thought of the brilliant, billion dollar idea. We brainstormed it out, thought about how rich and successful we’d be from having thought of the idea, then dreamt about living lavishly in a penthouse overlooking Central Park with enough money to feed every starving child in Africa. I’ve done it, and I know you have too. The problem lays in the fact that most self-proclaimed entrepreneurs are great at dreaming and envisioning their business idea, yet they lack the capability (and even willpower) needed to see it through. In my honest opinion, these people cannot be considered legitimate entrepreneurs if all they know is dreaming and allocating the task of implementation to others.

As a 5th grader, I started my first “company” and convinced my entire class to join me in my quest to build the internet’s latest and greatest entertainment portal. Of course, I didn’t know how to build anything more complex than a basic HTML website. My classmates lost faith in me, and I went down as a failed, type 1 amateur entrepreneur.

Type 2 Amateur Entrepreneur: Lots of ideas and half assed implementations.

These entrepreneurs think of good ideas and have the willpower needed to start working. However, they take the “fail fast” mentality way too far — they’ll launch a prototype of their project, put in almost no effort in getting it noticed, then call it a failure. Or even worse, I know of some entrepreneurs who dedicate months of their time working on a startup idea, but never end up launching. If you’re going to fail, at least make people think that you spent your time semi-wisely. Alternatively, type 2 amateur entrepreneurs have multiple ideas that they’re simultaneously working on, and figure that they’ll get rich from at least one of them. To you and me, this is obviously flawed logic. But at one point, I was a type 2 amateur entrepreneur.

A few years ago, Alex Notov and I co-founded Shockapps.com, a pathetic startup that made numerous, half-assed attempts to launch a successful facebook app. We got a lot of users and made some money, but with a concrete and focussed development strategy, we could have gone much further. We’d launch three apps in a single month, but all of them sucked, and only one of them got traction. When your mind is distracted by the thought of getting rich from multiple business ideas, it can be difficult to follow the rationality behind having focus.

Type 3 Amateur Entrepreneur: Lots of ideas, lots of implementations, and absolutely no focus.

Type 3 entrepreneurs are marginally better than type 1 and 2 combined, but they have absolutely no time for anything other than their work. They make a solid attempt to see their business idea through, but get distracted by the idea of another growth opportunity. I feel bad for these people more than anything — they try harder than both type 1 and 2 entrepreneurs, yet they often see just as devastating results. (and mostly on their psychological well-being)

Let’s say Johnny has an idea for a million-dollar idea. He starts working on it, gets traction, and a loyal client base that’s paying for his service. He then finds another growth opportunity — perhaps a multi BILLION dollar idea that he thinks he should be pursuing. He’s locked into business #1, so he can’t just drop it. So Johnny starts building up business #2, it gets traction and a loyal user base, and now he’s stuck handling two completely different companies. Now how lame would that be?

Unfortunate for my mom and I, but of us have been sucked into the trap of being a type 3 entrepreneur. In fact, my ninth grade business partly failed because of this trap. I started a simple, easy, cheap web hosting company as a way to cover the costs of having a personal website. I then realized that leasing expensive, managed, server solutions to small companies would bring me much more profit. Both businesses were doing pretty well, but they were sucking up all of my free time. What ninth grader should have to deal with the pains of school, running two companies, and the onset of puberty? Gag me with a spoon.

Going back to the quote — yes, everyone is “working” on a project, but 99% of self-proclaimed entrepreneurs fit into one of the three profiles above. If you’ve thought of the next billion dollar idea, please refrain yourself from being an amateur entrepreneur. If you find yourself as being an amateur entrepreneur, it’s not too late to change. Pick one idea that you’re passionate about, and whole-heartedley follow through with your implementation. Forget about the babies who have their own pet projects! If you don’t put in the effort to build your company, you’ll see nothing but a self-hating outcome. To the blogger who wrote the quote above: when you make the time and find the resources needed to make your idea a reality, you’ll experience the bliss of knowing that you’ve contributed to something amazing.

The Eleven Rules of an Entrepreneur

You live and die by the standards you create for yourself in life

"The chess-board is the world, the pieces are the phenomena of the universe, the rules of the game are what we call the laws of Nature. The player on the other side is hidden from us."

Who is a successful entrepreneur?

1. Determined: I will succeed no matter what because I always stick to my goals until they are achieved.

(Tip: Determination means never taking 'no' for an answer and never ever saying you'll give up.)

2. Resilient: I can bounce back and start again no matter what obstacle, pain, disappointment and emotional misfortune I might encounter.

(Tip: To overcome defeat, remember where you started and how far it took you to reach where you are now. Remember the mistakes you made in the past and how much wiser you are today.)

3. Focused: I will let nothing and no-one stand in my way and will summon all my energy and channel it into achieving my goals. I will never lose track of what it is I am aiming for in life.

(Tip: Always keep a monthly diary and evaluate what you have achieved and how far you have come on a monthly basis.)

4. Driven: I will consistently push myself to my limits to achieve my dreams.

(Tip: Nothing in life is free and nothing comes easy. It is through pain that we realize our limits and by knowing this, we can only get stronger.)

5. Courageous: I know how to take risks because I fear no one.

(Tip: Evaluate each risk by assessing the possible gains and losses. Develop a strategy and determine the stake you will win and how high you have to climb before you reap the rewards. Remember with every risk you take, you must ask yourself this: Is it worth it and what are the consequences I may have to face?)

6. Persistent: I will always keep going even when the going gets tough.

(Tip: If the tough keeps getting tougher and it seems as if you are not going very far very fast, redefine your strategy and plan and look at alternative routes towards your end goal.)

7. Charismatic: I have the ability to charm anything and anyone.

(Tip: You must create a strong reputation for yourself. Reputation is everything. Guard it with everything you have in you and more.)

8. Strong: I WILL ALWAYS find the survival instinct within MYSELF to keep going even when my will feels feeble and my body has failed me.

(Tip: Remember your strength is locked within your mindset and by believing you are a champion you will become a champion. Never assume the role of a victim; always maintain control, by appearing strong and powerful. People treat you according to how you act. If you act like a victim you will be treated like one.)

9. Achievement-driven: I will make sure that every step I make leads to reward, recognition and achievement of all my goals.

(Tip: This can often be something as simple as congratulating yourself for a job well done.)

10. Full of self-belief: I believe in the impossible because I will never give up until the impossible is achieved.

(Tip: Remember that there is always a way to achieve what you want if you are absolutely committed to achieving it. Try thinking laterally!)

11. Proud: I will stand tall no matter what the circumstances because I am proud, strong, intelligent, confident and powerful.

(Tip: You must put a value on yourself. Like everything in life, you must state your price and stick to it. Create you own unique selling point that will justify your price. Make yourself irreplaceable.)

"Really, the fundamental, ultimate mystery -- the only thing you need to know to understand the deepest metaphysical secrets -- is this: that for every outside there is an inside and for every inside there is an outside, and although they are different, they go together."

Defining Purpose: Finding It and Staying On It

For centuries, we have been asking the question, “What is my purpose in life?” There are many books, articles and much discussion today about living and working “on purpose.” What’s the purpose of being on purpose anyway? More importantly, what is it, how do we find it and how do we know if we’re on purpose?

Purpose is a unique source of energy and power that exists when we are doing what we love (and loving what we do), maximizing use of our talents and abilities, living authentically according to our values and using all of these to serve a cause outside of our immediate self-interest. I will be the first to admit that finding a higher purpose is not always easy and takes quite a bit of self-refection and courage.

Let’s take a look at these four attributes of purpose:

1. Doing what we love and loving what we do. When we love our work our passion flows through us and we affect everyone around us positively. When we are connected to our passion, our work feels like a calling, or a natural choice. When we disconnect from our passion, our work feels like a chore or something we must endure to pay the bills.
   
   
2. Maximizing use of our talents and abilities. We all have unique talents and abilities, or gifts, which I believe are clues to finding our true purpose. If these gifts are utilized as much as possible, our purpose becomes clear and we move toward it. If we don’t harness our unique gifts, we can become stagnant, doubtful and unsure of our purpose. We then find work for the sake of work and get caught up in earning a living and surviving. We become disconnected with our true purpose in life.
   
   
3. Living authentically according to our values. Values have intrinsic worth in that they provide a source of inspiration and meaning that cannot be taken away from us. Without even realizing it, we make dozens of decisions every day based upon our values. When we live by our values, it just feels right, even when we have to stand firm in the face of adversity or opposition. Sometimes we go against our values for many different reasons and we just don’t feel right. The better you know your core values, your code of conduct becomes clear.
   
   
4. Serving a cause outside of our immediate self-interest. I have found few things more gratifying in my career than to be so completely focused on serving others. I often depleted my energy reserves (I didn’t know about energy management then!), but the power of being on purpose is a far greater energy. If our focus is always directed inward (what’s in it for me?), our purpose eludes us and we get lost in the shuffle. We eventually come to a point, where we say, “Is this all there is?” This is a good thing because it forces us to take a look at our lives and ask ourselves what we really want.

The good news about finding our purpose is that we can find it in now our current work and personal life. All that is required is that we know our values and then ask ourselves how we are currently applying them in our work and life. If you value helping others succeed, what is your attitude toward this value?

Are you “always solving other people’s problems” or are you helping them grow and improving the quality of their lives? The former is an energy drainer while the latter is an energy booster. See the difference? Sometimes a little perspective is all it takes!

Why is all this purpose stuff important? When you are on purpose, you can help your entire team be on purpose. You should only hire candidates that know what their purpose is and then do an alignment check against the company’s purpose. When your team is on purpose, they are more fully engaged with each other and your guests, customers and clients. Full engagement translates into increased productivity, goal attainment, better relationships and PROFITS!