Few days back we featured a question raised by a wannapreneur on whether to startup or not.
Sushanth has shared some wonderful tips that I believe needs to broadcasted to the larger audience:
‘The 3 most important factors you need to consider are: Team, Cash Flow, and Revenues
- Team: Do you have a team that complements your skills with you? If not, you may want to get at least a couple of people around you who would internalize the same passion you have. Building a core team after jumping in could be very difficult and you may end up compromising too much. Ideas will come and go, but it is the team that builds a startup.
- Cash Flow: Please note that I listed cash flow ahead of revenues here. Once you jump in, your savings would deplete a lot faster than you could imagine. If you think you could survive for 12-18 months with the current cash, plan for a cash crunch in 8 months. Never assume that somebody would invest in 6 months so you could get over any cash issues. Do not believe that anybody will invest in your venture until the money is in your bank (and the first cheque you wrote is realized. To be extra cautious!!!)
- Revenues: How will you make money? When will you make money? Who will pay you? When will they pay you? When will you get your first revenue booking? How will you ensure a continuous revenue flow?’
What’s your opinion? Carry the discussion here