Today, startups all over the world have access to funding
Startups represent positive aggression to accomplish conversion of a powerful idea into a commercially viable service or a product
Building anything requires planning and execution time. If one is in a hurry to grow before maturity and without basic foundation, they tend to fall certainly.No sky scraper can be built without deeper foundation
Q. Is there any possibility of raising funds if a startup is set up in small cities in India? Or is it a must to establish startup in big cities in order to attract funding? - Rajganesh, Hyderabad
A. In the world we are currently in, access to funds is global. It does not matter where you are based out of, as long as you are focused on your market place and product/ service idea.
Spotify is a classic example of a global brand built from a shanty in Stockholm, Sweden in 2006. It rose to become a revolution in music dissemination and is a great commercial success story.
However, as most offline businesses need market access, talent pool access and of course fund access, they choose bigger cities.
Q. New businesses and new companies are established on a regular basis. What is the difference between a new business and a startup? Kindly give your take on this. - Ratnakar, Vijayawada
A. All and any new businesses are 'startups'. There's a strong notion that new businesses in IT or IT services are considered 'startups'. I strongly believe that 'startup' is a mindset. Startups represent positive aggression to accomplish conversion of a powerful idea into a commercially viable service or a product.
Q. Is it good for a startup to scale up rapidly? What is the right strategy for a startup when it comes to expansion? - Tejaswini G, Bengaluru
A. There's an old saying 'What goes up has to come down'. This phrase gets amplified when you apply to quick scale up of startups. Building anything requires planning and execution time. If one is in a hurry to grow before maturity and without basic foundation, they tend to fall certainly. No sky scraper can be built without deeper foundation.
Byjus is a classic example of rushed growth with no solid business plan backing that pace of growth. There are many startups which have not seen the light of the day because they tried to grow before they found strength in stabilizing their business. All startups must scale but cautiously and thoroughly.