Current Reality of A Startup
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3have been easy for you to deal with business plan template. You feel that agenciesassume that you know the business and therefore, could plan it easily.Anyway, you fill the templates and one after another you prepare business plan informats as needed by respective agencies. Submit them and wait for the call.Since you have applied to multiple agencies and entrepreneurship is on the rise and youridea is no meek one; you are called for meeting and you prepare yourself to meet. Yougo through the grilling. You realize, how simple the questions were and yet how difficultthey were to answer. Questions were coming from all the corners and you were not ableto link them; and got lost or overwhelmed by your ignorance to answer them. But youdid feel that they were simple, logical and no-brainer. You also recall that you still do nothave a feel for numbers, although you had placed them after a lot of complex calculationand manipulations, to the best of your knowledge. So far, you were dealing with a fewlacs of rupees, but you hardly had any realization of what it means to deal with over Rs50Crore of business. Actually how does it fee to make Rs 50Crores, is it same as makingRs 50 lacs by a factor of 100 efforts. As of now these numbers mean just calculationsand projections, nothing more. You were a bit worried that you might miss one or twozeros somewhere, since you are not used to large numbers. You know that it was more of a fictional story than a
plan. You actually thought that it would not have beendifficult for you to pre-estimate those questions. Actually, all the interactions took placein a very friendly way but both sides knew that you need to do a lot of preparation. It isthese set of meetings that give you a chance to re-read your business plan and understandsimple things like: what was expected to be written in the template, meaning of someconcepts, why those questions being asked, and how to find answer for them and how tolink things logically. Actually, meeting with investors forces you to look at basic‘assumption’ based on which you tried to start up. And you realize that you need to goback to the ‘
’ and make the logic clear-first to your self. Only when youhave the logic clear, the numbers, dates and commitments made in the plan will makesome sense.By now you had met quite a good number of VCs and every one bring you to the samethings; and you can not improvise your business plan overnight, since it calls for a lot of introspection of your own understanding of business and logic.So you go back and work around a few things, and since you had beaten quite a fewsituations in your personal life, you pretty well know how to ‘workaround’ interviewsand you succeed to win over one agency. After much of discussion and changes in yourbusiness plans by the agency (so that they are also comfortable); you enter into apartnership to start the venture. The VCs very clearly indicate their role of supporting youand not being the main operations people and that the whole responsibility of the successof business is yours, since you are the
owner of the idea
. That is fair expectations. Youmade your day !!! A few months of struggle, collecting data from internet, placing thingsin business plan, facing a few interviews and changing a bit here and there, and … youget
commitment for funds