Jun 12, 2022

Business Mindset taken over by the Skill Set


I have seen many start-ups growing from their initial stage to the stage of recognitions and status, however these stories were not written in the study room but executed on the ground, thus witnessing many ups and downs by many startup founders. Despite all this, we can say that those who got good traction they became unicorns like gems of luck.

The Indian startup ecosystem produced 100+ unicorns across different segments which shows strong traction in terms of getting funding, making the enterprise scalable and creating valuations.  All is happening because there is a bond between founders and investors which shows trust that both will be benefited if the venture scales the business.

More than 85 unicorn built a large sphere in the following sector and many more are in the line to touch the unicorn status by end of September, 2022.

Sector wise: Broad Level 

1.       Enterprises Tech
2.       Health Tech
3.       Educational Tech
4.       Financial Tech including Equity market
5.       Retail Tech more onto b2b side
6.       Consumer Tech – E-commerce
7.       HR Tech
8.       Tour & Travel
9.       Real Estate Tech
10.   Media & Entertainment
11.   Advertisement & Marketing
12.   SCM & Logistics (Transport Tech)
13.   Other sectors
14.   Biotechnology

 Sector wise – Micro Level


Just to refresh the current knowledge   there are three sectors which has produced more Unicorn in India and those are in Enterprises Tech, Financial Tech and Retail Tech including E-commerce, about 62% of total startup in India comes from the said sectors. 

 Let’s figure out the sectors where they got a good status and further more they will be profitable apart from scalable point of view.  They are purely basis on adoption where startup has to burn money to bring the adoption in long run so that they will have more top line and bottom line to make themselves sustainable.  I will put such startups in Business skill category where each entrepreneur is committed to bring sustainability in the company and accordingly working on it by taking ample risks.  Business skill always comes through experience, and it teach us to handle the situations in wiser and it helps us to understand it in more responsible way.  Sometime we assume that business sense will come with the experience, yes it is true but more likely it is inherently god gifted within us that cannot be replaced easily by any management trainee or technocrat.  To some extent it is true but we can’t ignore the modern way of management lessons which is being taught by the renowned institutes and those are aligned with the modern techniques of technologies.

 You can figure out that 99% of unicorn startups were built by the Technocrates or masters of management from top management institutes. So, the fact of business skill is taken over by the Skill set is true that Skill set is stronger. 

Facts of Skill set is technology that is helping them to think beyond periphery.  80% startups are working on IT driven solutions so they are from skill set i.e. technocrats.  They are most trusted by the investors because they are master of management where they have analysis and gut feeling that skill set will take over the Business skill.

In support of the above fact, let’s take example of Flipkart, BYJUS, PayTM, Swiggy, Polygon, OYO Rooms, Dream11, RazorPay, Ola Cabs, CRED, Postman, PharmEasy, PhonePe, Zomato, Icertis, Ola Electric, Pine Labs,

Dailyhunt, OfBusiness, Meesho, ShareChat, Lenskart.  

Above mentioned startups have created great valuations and are in the club of over $5 billion valuation. If you take a look on their founders and co-founders, you will understand why they built an empire in a few years. They were not from a business background, so I would say that most of their business mindset was not in line with the original and not naturally formed, but they built unicorns.

 And more than 15 tech based startups are in line to become unicorns in the coming months. The founders of these unicorns are either masters of management administration or they are technocrats. The same is with investors. VC funds are owned by the network management administrators of LPs, PE funds or angel investors. Overall they are driving by the skill set in the industry they are in. But one aspect is more relevant which I will mention in the following way, and that is the business mindset. Business mindset is very much needed in business where the movement of goods is directly managed by the founders of the startup. Here more emphasis will be with the fundamental side and the market conditions.

 Why Business mindset is important?

 Entrepreneurs are more refined word when we talk about building an organisation by a person because he uses skill set wisely with business mindset.  He is the man who find certain problem in the business ecosystem and through great ideation they build an organisation. Certain parameters of industries have to be complied while working on the solution side.  Now a days we are giving these organisation new name “ Startup”.

 Two years ago the co-founder of a B2B marketplace came to my Jaipur office. When I asked him about business thesis and fundamentals. He said with confidence that I really do not know the business and about its mindset. We are technocrats so we know our technology better that it will do business. I was astounded to hear the answer that responded so quickly how could anyone say "I don't know business". The said founder was from a large funded eB2B Seller platform. With due respect I said, you are doing good in B2B retail. In this reference would like to say about Ofbusiness, a startup. OFB is a tech-enabled platform that facilitates raw material procurement and credit for SMEs with focus in the manufacturing and infrastructure sectors. Founders of OFB comes in the skillset group but the way they gave directions to their business, I must say that they are using business mindset somewhere to align the executions. When physical movement of goods directly comes into business then one must go with business mindset approach. That's how I'm trying to understand.

 Again, I met some investors in LPS from Sequoia, Accel, Tiger Global and several VC funds and I asked the same question. Is the business mindset worth them or are they part of a cartel of skillset? I asked them why they are investing in such and such sectors and what cartel they are part of?  They said, we don’t know the business what startup is doing, we are only concern about the solution they are providing, is it scalable a technology driven. They are concern with the returns and risk they are expecting. I am highly inspired by Mr. Sanjeev Bikhchandani, founder of Info Edge, a successful VC fund in the ecosystem because he is a successful businessman who build naukri.com and many other ventures. He is full of business mindset. Investor should learn from him that how to find a business mindset founders and when to invest.

 I am sure that founders of startup & LPs of investor fraternity will oppose my thoughts on business mindset or skill mindset because most of them is using skillset to drive their business.  As per them they are building a business empire so they are business people, True, those are running businesses are business people.   A layman will have this thought and agreement.  But, I am taking about business mindset that is something different which has many dimensions.  We cannot expect that a fresh graduate of age 20 or 30 will have those thoughts and mindset.  Just check the following and then compare it with your skillset.

 Entrepreneurial mindset is only important factor that will make or break a venture’s success

     ·    Understand the market trend & forecast

  • Know himself and market as a domain expertise – Business side

           ·      Dare to face failure – Risk Appetite - Resilience 

    • Believe in Networking   

 ·         Positive Thinker |   Goal Oriented |    Creativity |    Accountability |   Decisiveness |  Passionate  |   Patience |   

 It is imperative to say that business owner should have business mindset first and skill set he /she can get through taking higher /professional education or can have it through experience.  Few characteristics are making difference in the above statements.  Business mindset has some inherent tools in his/her mind that he/she use while making decisions. It should be like that.

Two #equation = purpose is same , what is best suited for entrepreneurs.

Startup with Business mindset + Skill set = Entrepreneurs =Enterprises = Profitability =Sustainable business (Medium Term, ration of Success is 85%)

Startup with Skill Set = Scalable = Negative EBITDA (if+ Business mindset join) = Entrepreneurs=Enterprises =Profitability =Sustainable business ( Long term, ration of success is 15%)
#business #startup #mindset #entrepreneurs #sustainable #success
#retail #retailers #businessanalysis #skillset #grocery #kirana 

 So never let skillset to hijack your business mindset, rather develop it, learn it

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