Building something? Here’s why starting with your own story could be a superpower and a blind spot. I recently spoke to a founder who built a recruitment product. While he explained the features, I struggled to understand why he was building it. So, I asked him if there was any personal story
Working in Big Tech and starting your own venture can feel like a natural progression. Here are stories of two friends who started up, only to face surprising blind spots. Story 1: One friend was a top performer at a Big Tech firm, working on moonshot projects. Inspired, he decided to start
SMBs often hire from their close circles, such as relatives and friends (in addition to having family members work in the business). They may also bring in workers from their native towns or villages where they have strong social connections. This approach helps bridge trust gaps that come with unfamiliar/unmonitored workers. It
In many sectors, SMB owners play a hands-on role in daily operations, allowing them to maintain tight control. However, as these businesses scale, they often face principal-agent problems, leading to potential moral hazards. Some examples In the absence of the owner, salon employees might underreport foot traffic, affecting collections. Bar owners regularly
In certain sectors, SMBs have the advantage of navigating local regulations more easily, which can put larger, organized players at a disadvantage. Wholesale markets often operate in cramped, unsafe buildings, avoiding the higher costs associated with adhering to safety norms. Street vendors and small footpath shops typically avoid rental expenses, although they
A common startup pitch revolves around consolidating fragmented industries dominated by SMBs. The idea? Leverage economies of scale to grow faster and more profitably than standalone small businesses. While this strategy has seen success in sectors like medical labs, it’s been less effective in others, such as groceries, fashion retail, farming, and
Fixed costs hit startups harder than anything else. Full-time engineers and office spaces, for instance – use up cash regardless of their utilization. This downturn is making founders acutely aware of this reality. Here’s a common scenario I have observed a few times: Founders realize that their idea isn’t gaining traction and
“Indians don’t want to pay for software”. I heard this from a few SaaS entrepreneurs serving the SMB market (especially ones focused on efficiency). They have either shut down or exited the Indian market. They allude to “cultural” reasons (cost-consciousness) as to why their products failed in this market. However, a detailed
