Lessons On Building Start-ups From Ground Zero The start-ups have become overly obsessed with matching the competition said Paavan Nanda, co-founder, WinZo Games
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Start-ups are the biggest force behind the world's economy and founders are the base. The more agile founders become, the more relevant they stay to the real conditions and the situation—start-ups become fundamentally strong. With every passing day, new businesses are emerging in every sector and each striving to make a mark in the industry. This tremendous growth and innovation is leading to a huge contribution in the Indian gross domestic product (GDP) from 3.5 per cent in 2020 to 12-14 per cent by 2025, according to the Ministry of Commerce and Industry.
At the 14th edition of Entrepreneur Summit 2024, in Bharat Mandapam, panelists for "It's always Day One! Day In the life of start-up: The Founder Perspective" shared their views on keeping the start-up culture intact.
Right Mindset, Right Team and Right Investor
Building a start-up from scratch and taking it to the profitable level requires three important things, explained Karan Mohla, partner, B-Capital. "Right team, right mindset and right investors." When the founder just starts, the team is usually made up of people the founder knows and trusts. But as you scale, it's crucial to bring in specialists who can add a professional layer to your operations. It is equally important to find investors who share the same values and understand the industry, as this relationship is vital for long-term success. "The founder-investor journey is a long-term one. If the investor isn't the right fit, it can make the journey difficult," Mohla advised.
The ecosystem has witnessed several start-ups follow a "hacky" approach which lacks originality. This approach works when building something from scratch. However, the mindset shift is required to take it from one level to next level as the business grows, and it becomes essential to introduce systems that can support long-term scalability. "What gets you from zero to one won't get you from one to ten," Mohla explained, stressing the need to continuously evolve and adapt.
Stay Obsessed with Your Customers, Not the Competition
Paavan Nanda, co-founder, WinZo Games stressed that the start-ups have become overly obsessed with matching the competition.
One of Paavan's biggest realizations was the danger of focusing too much on competitors rather than customers. He explained, during his first venture, he saw how the team became overly obsessed with matching the competition and constantly comparing their offerings and prices against others. Paavan believes it was the biggest mistake. "This obsession with customer satisfaction, rather than industry rivals", is key to lasting success, he explained.
Market Regulation is Important For Growth
India is very excited and welcoming towards cryptocurrency but not having regulations in place is making it a very uncertain industry, feels Thakur Amardeep Singh, co-founder, Mr. Mint. "But the adaptability, if you see, today more than 15 per cent of the Indian population has already invested in crypto, which is a huge number compared to any other country. We are almost third in numbers in the world who are into crypto investment," he shares.
In the crypto industry, growth isn't always organic. Singh mentioned that if one looked into crypto tokens or cryptocurrencies in India, they'll notice a lot of AI-driven growth on platforms. They often use tactics like votes to give the impression of having a large community. "Right now, with no regulations in place, the key to success for any crypto project is having a strong community behind it," he added.
Going Global
The Indian e-commerce market is one of the fastest-growing and largest in the world today. In 2022, the market size was USD 83 billion, and it is projected to reach USD 150 billion by 2026. These developments are expected to significantly transform the market and boost startups and private investments. Additionally, many companies are now targeting global audiences.
Sharing her thoughts on this expanding global reach, Elly Pham, Global Growth Director, GearLaunch highlighted the "bring-on-demand" concept. She explained, "It's like turning your creative ideas into a product, and we handle the shipping and selling to customers worldwide. There are no boundaries or limits on where you can sell. It's a game-changer for entrepreneurs."
Know Your "Why"
A fundamental aspect of any successful business is to understand the "why" behind its creation. Founders need to be clear about their purpose, whether they are entering a crowded market or tackling a difficult problem. Shruti Gat, Founder & CEO, Recla International believes, "Knowing your 'why' and embedding that vision within your team, customers, and partners is essential. You may not always find people with the same drive, but aligning them with your mission is key. Building a start-up with a few customers and some revenue is one thing, but scaling requires a team that shares your vision and works with dedication—maybe not as hard as you, but close."
