As we enter the season of festivals across India, the debate about how the expenses made could be utilized for poverty eradication has again started. However, I feel that the festivals also greatly help the financially underprivileged.

All festivals surpass cultural and geographical boundaries when they bring people together to celebrate, reflect, and express themselves. Beyond the cultural and social significance, festivals have the power to bring a positive change in society through their contributions to poverty eradication. While the effect may not always be immediately evident, the impact of festivals is profound in alleviating poverty and improving the lives of financially deprived people. 

Almost every festival comes with economic support from the government and large corporations that serve as economic catalysts for impoverished regions. During the festival season, we witness an increase in economic activity where local businesses, vendors, and artisans benefit from sales owing to the spike in demand for goods. This leads to the creation of jobs, even if temporary, that are generally filled by the underprivileged. In fact, in many cases, festivals like Durga Puja become a source of income for those who might otherwise struggle to find employment for the rest of the year.

Since festivals often revolve around community and togetherness, they bring together people from diverse backgrounds to share their cultural heritage. This sense of brotherhood also positively impacts poverty eradication, where those struggling economically are given support through business opportunities or even direct funding. A unique example would be the Dhakis (traditional drum players) who come down from the villages during the Durga Pujas for these 5-15 days of contracts that earn them more than they could have earned in a quarter year (if not more).  

Festivals are also a fertile ground for micro-entrepreneurship. Many would seize the opportunity to start small businesses during festival seasons. Be it setting up food stalls, selling handmade crafts, or providing transportation services, these micro-entrepreneurs have the potential to earn a significant income during these festivals. Over time, these opportunities for extra income help improve their living conditions.

As mentioned earlier, the positive effects of festivals may extend beyond the festive season, leaving behind a local environment of social well-being. 


 


A government official was asked by a senior professor of a leading management college how they can contribute to the startup ecosystem. The reply came in two curt words. STAY AWAY. While the audience was split into two groups—one laughing at the promptness of the answer and the other visibly annoyed by its rudeness—the government official explained the logic behind his statement.

The professor was well respected in the leading corporations of India for his acumen and guidance in business strategy. However, corporations have a well-defined roadmap and can afford a long-term strategy for execution. Startups are nimble, often running the risk of closing down in the next quarter unless some drastic turnaround happens. Having a long-term execution plan is a luxury that many would not enjoy.

When a startup is bootstrapping, its cash flow is always strained. They will accelerate into the red if they have to employ senior professors at high consulting fees.

Most senior consultants may be extremely capable of implementing mature organisations' go-to-market or operational strategies. Only a few have experienced the adrenaline rush of getting the first order or installing a stand-alone piece of machinery in a 10X10 room. While their experience may be of great help some time down the line, it might be counterproductive during bootstrapping.

In my last blog, I ended on the note of mentorship with a promise that I would elaborate on the topic in a new blog. Mentorship is another key aspect of a startup that one has to consider through a planned approach. From my experience, I find startups more inclined towards mentors who are renowned names. The objective is more for networking rather than adding value to the business.

Before searching for a mentor, it's essential to understand the startup's goals clearly and the specific areas where guidance will be helpful. Is it product development, marketing strategy, fundraising, or something else? Knowing the needs is an excellent first step in the mentorship search.

Once the areas are identified (yes, these might be multiple), one should start creating a list of potential mentors. Making down a list is a highly critical step. The entrepreneur must maintain a balance between those with experience in the industry and the type of organisations they have worked in or mentored. Mentors who have successfully launched startups themselves are a great choice. Mapping mentors from networking events, industry conferences, and online platforms like LinkedIn can be a good idea.

Do not get overwhelmed by the mentor's profile. Founders should evaluate their expertise and review their professional background, including their previous ventures, industry experience, and achievements. It is important to consider whether their knowledge aligns with the needs and goals of the startup. Most importantly, one should be sure that the mentor can give the promised time (and more when needed).

If the prospective mentor gets agitated by the evaluation process, it is a red flag: avoid such mentors rather than have to deal with such ego later.

Entrepreneurs should never forget that the business is theirs, and the ultimate consequences of the decision rest on them.

Start the mentorship with a trial period to test the waters. During this period, the mentor and the mentees can assess whether the relationship is a good fit. If it's not working, it is better to part ways amicably.

A startup cannot afford to be at loggerheads with someone in the industry.


 



As I have been mentioning, every startup begins with a compelling vision and the unwavering passion of its founders. Vision and passion help deal with initial roadblocks, pushing the entrepreneur to find solutions to issues that may otherwise seem insurmountable.

But while passion might help us persevere and keep us motivated, it may not be enough to run a business successfully. For that, we need to connect with the external ecosystem, investors, bankers, mentors, and customers. And for them, their priority may lie elsewhere!

From my experience, normally, every external stakeholder looks at a startup and wonders about the unique problem it is solving. They are always looking for the genuine pain point or unmet need in the market that provides the foundation on which the startup has built its solutions. The more acute the problem and the more effective the solution, the greater the potential for success. That’s not to say that a startup cannot offer an existing solution; it needs something unique. Or else why will the stakeholders find any interest in a story they already know?

Once the solution is established, the next factor that helps the startup is to get market feedback. Achieving the right product-market fit is extremely important. If the solution does not resonate with the target audience, we can safely assume the future will be in the doldrums. For this, in-depth market research is indispensable. Thorough research helps startups fine-tune their product or service, tailor their marketing strategies, and make informed decisions. Startups must be agile and make course corrections if the market research calls for it.

Timing plays an important role in every solution the startup brings to market. Entering the market either too early or too late may decrease the chance of success. Several business solutions have failed in the past but come back to be a major hit. There are examples from the other side as well. The fact is that markets evolve, and customer needs shift. Those that can pivot easily have a higher chance of success. Startups should aim to launch only when they have a data-driven inference of a clear demand for their offering.

Ultimately, the rubber needs to meet the road. A brilliant idea is meaningless without proper execution. Startups may have a clear roadmap and planned achievable milestones, but they still need to execute the plans meticulously. For this, having the right team and mentors is critical.

This brings up another important factor that needs elaboration. I shall try to address it in my next blog.

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