Startups are that special breed of companies that get a lot of attention especially in the tech world. No doubt, they bring new ideas to market and can give people an exciting opportunity to change the world on their own terms.
But, the importance they get from the tech world doesn’t make them as special as they are believed to be. Obviously they are not born out of big bang moments where the laws that govern other businesses don’t apply.
Feeling that a startup is a place where you can spend other people’s money until you figure out a way to make your own is akin to spoiling a child and shielding them from the outside world – They’re far less prepared when they eventually have to leave the house for the first time.
But the reality is, from the moment they go live, startups are as real as any other business. They are governed by the same set of market forces and economic precepts that wrap around any other company, new or old.
Anyone who walks around with an attitude that “we’ll figure out how to profit in the future” is just being ridiculous. It’s like building a rocket ship but starting off by saying “Let’s pretend there is no gravity”
A business without a path to profit isn’t a business, it’s a hobby.
At the atomic level, all businesses need to generate revenue to pay their bills, to grow and to survive. The sooner they find themselves in the black, the better chance they’ll have to survive. Call it a business survival instinct but businesses have to feed themselves or they’ll die.
A wonderfully run startup is a wonderfully run business and a poorly run startup is a poorly run business. At the end of it, it may be a great IDEA, but may not be a great BUSINESS.
So if you want to start something, ‘Start a Business, and not a Startup.’
-By Deepak Kaistha