Pakistani Startups in these Uncertain Times

Being an entrepreneur is not easy and I have the utmost respect for those that take the ultimate risk. Recently, several funded startups have made mass layoffs in Pakistani startups due to market conditions. Although I understand that the market is tough, but I believe there are various other reasons that were overlooked resulting in such sudden failure.

I apologise if this offends anyone, but this POV needs to be stated even at the risk of attracting the ire of some.

Here it is:

1. Focus on the Positive. We must not let the sudden (arguably predictable) demise of some startups impact our resolve to take the entrepreneurial route. Pakistan has great opportunities and there are some wonderful start-ups that are thriving.
2. Good Jockeys Win the Race. The most important aspect of start ups is the leader. Do the founders have past commercial, entrepreneurial and business/sales experience that is meaningful? Pure tech and operational founders or folks coming from large companies where they just rode the success of the enterprise aren’t real qualifications for founders.
3. Bite is more important than Bark. Marketing is important for start ups, but so is walking the talk. Creating exaggerated hype results in distrust and eventual sense of betrayal. One cannot outyell or outmarket all business problems.
4. Hubris Kills. Founder must recognise that they will be criticised and must be open to it. Equally important is the attitude of well-wishers. A few cheerleaders (surprisingly some seasoned ones) came out and called out the critics who questioned Airlift’s business model as “uninformed”, “old fashioned” and even “unpatriotic”. Some even cited the fact that just because the business was able to secure a large round of funding, there could be no doubt over their business model or their metrics.
5. Sustainable Business Model. Start ups need to have a real business model. It’s great to have aspirational motivations of uplifting society and making an impact, but without a real business model, no aspiration talk can save the start up. Ironically, it ends up hurting the very aspirations.
6. Failing Forward. Failure is not a bad thing. However, are founders willing to recognise their faults openly? Or will they resort to making external factors as scape goats? This is where sound advisors who will call out the proverbial “bull…” are critical. Not ones that will be mere cheerleaders.
7. Be the Tortoise that Hares. While those who raise big VC money are to be applauded … it has serious consequences specially when raised so early in the game without a proven sustainable business model. Dilution makes you a lame duck as a leader. Founders cashing out early is not always a good thing. There are ample examples of businesses who have raised conservatively or after proving a sustainable model. Think about the mindset of the great cricketer, Javed Miandad. He timed his acceleration perfectly.
8. Heed Mike Tysons Advice. A true agile start up is one that has a real plan B. Stumbling around with a facade after getting punched in the face is an asinine pivot. Throwing more good money after bad money has only one outcome.
9. Let’s Redefine Success. Entrepreneurs who are building true value sustainably need to be highlighted. Pakistani entrepreneurs should not be trying to copy the Silicon Valley model. Success has nothing to do with the amount of money raised. Ultimately, the value of any business is tied to Revenue and Profitability.

Again, Pakistan has immense potential. We already have ample example of entrepreneurs who have started businesses and have taken them to a global level. Founders need to learn from these past successes and craft their own entrepreneurial journey accordingly. I hope and pray for success for all entrepreneurs trying to create value, jobs and opportunities.