With a belief that every startup has the potential to succeed, a serial entrepreneur and startup coach, Aditya Bajaj has recently started a new company Acharya Ventures. He started his first business at the age of 20 and ended up serving 500,000+ customers in a little over 6 years. His experience of building multiple companies (and selling them) has taught him about varied functions of the business including business development, marketing, operations, finance, strategy, tech, legal, team building and leadership. In an exclusive e-chat with P. K. Chatterjee (PK), the young business coach explains different aspects of developing a startup company. Excerpts…
What do you consider as the backdrop of setting up the company Acharya Ventures?
Among many other factors that are needed for a startup to succeed, a founder market fit is required. Over the past couple of years, I had been teaching or mentoring student startup teams at IE University and part time consulting young startups in India.
I realised my experience of building 3 startups in the past along with my MBA in entrepreneurship had enabled me to cut through the noise that is often accompanied in the early stages of startup building.
The idea to setup Acharya Ventures made perfect sense. I could use my experience and network and build on top of what I had been doing for a while. Moreover, it is also a way for me to give back for I have been extremely lucky to have had the guidance of some very knowledgeable mentors in the past.
What kind of shortcomings do you find among the Indian startup owners?
To answer this question, let us divide the startups in 2 categories:
A) Nascent early-stage startups created by first time founders or young entrepreneurs:
Very often these companies are started due to entrepreneurial seizure (Term coined by Micheal Gerber in the book E-Myth). These are usually technical people who feel they can create better products and the public will eventually use their products more than the incumbent due to technical superiority. This is often a path to failure. There is so much more that needs to be done than just building a great product. Failing to anticipate and address these challenges often leads to the shutdown of young startups.
B) The startups who have achieved Product Market Fit:
The challenges usually revolve around managing growth and profitability. Constant innovation and delighting the users through new products and services becomes a focus. The growth for some products could plateau – and forces the founders to spend more money on marketing than the opportunity size.
Another thing that founders need to take care of at this stage is the talent they are bringing into their teams and identifying the potential leaders. Delegating work and trusting their teams require a different level of skillset than it takes to get companies of the ground. The switch of working ‘On the Business’ instead of working ‘In the Business’ needs to be made. Founders need to have a vision, align their teams on the direction, empower their teams and then learn to step back.
What are the prerequisites to start a business in today’s economic situation in India?
It has become fairly easier to set up businesses with the govt promoting startups, easy access to grants and funding, etc., but what has also changed is the mindset of people. Somehow, starting up has become the ‘Cool’ thing to do. No doubt, startups are a great way of building wealth, however, what one needs to realize is that it takes years of hard work, persistence and resilience to be able to develop a sustainable business.
The focus has to shift from building a startup back to building a long-term sustainable business. With technology evolving at an unprecedented pace, startups need to stay ahead of trends and leverage emerging opportunities. But the basic pre-requisites remain the same. The ability to identify the trends, the ability to persevere, and the ability to solve hard problems.
How to generate a unique business idea?
A framework I love has been coined by Kunal Shah, the founder of Cred – Delta 4. This framework is a very interesting concept that anyone looking to startup should understand. It is a detailed concept so I will leave a youtube link for the same here – https://www.youtube.com/watch?v=4px19xzK7zI.
In terms of uniqueness, it is very tough to be able to generate unique ideas. There are so many smart individuals out there working on new ideas. So, if you have something unique, two possibilities are likely – either there’s a gap in your market research, or the idea may lack feasibility, as others may have attempted it unsuccessfully. The better way is to look for something that is working and create a differentiation. Slight tweaks based on the problems you identify in the current process is a better way to set up a product roadmap.
How do you guide your clients to address the challenges that they face during the starting phase?
The initial phase is usually an exciting time in the startup journey. It is also where most startups fail. So, my guidance is based on reducing the chances of failure while limiting the time and other resources spent by founders.
We usually follow the lean startup methodology towards finding product market fit by conducting various ways of market research, idea validation and creating MVPs (Minimal Viable Products). If any of the experience works, we keep doubling down on that.
Another important thing we do is listen to the customer’s feedback and build based on that rather than our preconceived conviction. I provide honest feedback to my clients and try to eliminate the biases they have.
I also force them to think about monetization faster and not look at growth numbers at the start. The initial revenue generated not only acts as a tool of early finance making the business sustainable, it becomes a key indicator of traction that investors look for if the founders are looking to raise external capital.
How does the right kind of partnership help in growing a startup business?
Partnerships could help in two ways:
A) On the supply side, they could help you get raw materials, services, or technology to sell.
B) On the demand side, they could help you boost your revenues.
Both are necessary and help create a potential MOAT for the business.
What is the exact point when an entrepreneur should think of partnership support?
Entrepreneurs can start thinking of partnerships on Day 1. As mentioned in the preceding point, partnerships can boost the ability of a startup to be able to build MOATS. Moreover, they could also help in financing (Extended Credit Period on the supply side and Advance Orders on the demand side)
Young founders should also start thinking of having a soundboard as early as possible.
What are the advantages of discussing new business ideas with others?
Ideas are available dime a dozen and it’s the execution that really helps the successful startups stand out. So, sharing your ideas has more advantages than disadvantages. You gain valuable feedback, potential collaboration opportunities, and validation.
How to assess the credibility of the business mentors?
Good mentors have the following qualities:
A) Experience: A good mentor should have walked the path you’re about to embark on. So, check if the mentor has hands-on experience in entrepreneurship, particularly in areas relevant to your industry or business stage.
B) The mentor should understand your vision and business goals. His/Her expertise should align with the specific challenges you’re facing.
C) A credible mentor provides actionable advice, not just generic guidance. They should challenge your assumptions, help you think critically, and guide you toward making informed decisions.
D) A good mentor often comes with a strong network of investors, industry experts, and other entrepreneurs, which can open doors for collaborations and funding opportunities.
What are your five most valuable suggestions to the new startup company owners?
A) Focus on validating your idea before committing too many resources. Use market research, customer feedback, and an MVP to test whether there’s real demand for your solution.
B) Many startups fail because they prioritize building a product over solving a real customer pain point. Understand your target audience deeply and tailor your solution to address their specific challenges.
C) Surround yourself with co-founders and early team members who share your vision and are willing to work through tough times. A strong team can adapt to challenges and ensure the startup remains agile.
D) Avoid burning through your resources too quickly. Plan for the long haul by managing cash flow wisely and prioritizing spending that directly contributes to achieving your business goals.
E) Entrepreneurship is a journey of constant learning and iteration. Stay open to feedback from customers, mentors, and even competitors. If your original idea isn’t working, don’t hesitate to pivot.
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