Is money making only wealth creation of startups?
The word startup always creates a buzz everywhere, it doesn’t matter whether it good or bad.So, what is Startup? A startup company (startup or start-up) is an entrepreneurial venture which is typically a newly emerged, fast-growing business that aims to meet a marketplace need by developing a viable business model around an innovative product, service, process or a platform-definition from wiki. A startup is also prophesied to grow at faster rate than other business ventures. The buzz created by startups has positives and negatives. The number of startups sprouting up into the startup environment is very high and the number of startups that wither away is also high, only few gets the foundation right and they goes to greater heights.
The topic that I’m going to talk here is money making only wealth creation by startup. Like any business venture, startup is also a business venture. What makes startups different is the ideas and the way they execute their ideas whether it be tech or non tech. All successful startup’s ideas are meant to make the life of either people or organisations easy and better or when they are successful in meeting the needs of them.
The startups which survive infancy, try to switch the gears to meet the prophesy that all startups carry as eternal burden. As a result, the startups go for funding early and get the money scale their venture. But there is a problem in it. They are growing in unsustainable way. As my mother always says most business goes south because they try to expand aggressively than they should have. It is the same case with startups. Currently, most startups go for funding as soon as they get traction in the market. I think it is not a good idea, because they are letting themselves vulnerable to the needs of the financial backers. When the startups goes south, the money invested the financial backers will go down the drain. This will affect all the stakeholders in the startup.
Startups should try to be bootstrapped and should be running on the ramen profitability for sometime. With this, founders can under the market very well and can adapt according to the needs. During this period the founders can grow themselves along with their venture. After having a sound startup, the founders have to go funding considering the stakeholders of the startup with more leverage.
All these while I talked about only about money making, there is another stuff that’s hidden in all business, VALUE. Anything that is beneficial to human life is value. Value is also a wealth. The value business the business generates is way more appreciated the money it creates.Most startups forgets the importance of value while they are running behind money and that is a huge mistake. This is becoming a trend in the startup world. It defines the startup and its founders mentality. The startups should focus on creating more value to the human life.
By creating value and financially sound startup will together will create wealth that is unimaginable.Going after money will only destroy the baby of the founders. First create value from the idea and then go for money. Therefore, they have to go for a sustainable one taking all the stakeholders of the startup looking into long term prospects. This will help the startup to go miles without problems and will be able to grow well.
