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What’s wrong with Indian startup scene?

May 7, 2011Paras ChopraEntrepreneurship, Personal21 Replies

I was at an Indian startup event today and did not enjoy the experience. It felt typical of what Indian startup scene has come to be (it is my perspective, of course. Feel free to disagree). There are two specific things which are wrong about startup scene in India: a) it’s a huge “ego-chamber”; b) most of early stage entrepreneurs are not solving problems for global market.

About “Ego-chamber”

Indian startup community is a tightly knit one and ironically it is also one of the biggest disadvantages. In today’s event, I saw entrepreneurs discussing ideas amongst themselves. One would say: “your idea is cool“. The other would respond: “no man, your idea is cool“. You see — perfect ego boosting so that nobody feels bad about their efforts. The tiny startup community in India has absolutely no connection to outside world and the actual customers are least bothered about these startup events. The worst part, in fact, is that since entrepreneurs talk to other fellow entrepreneurs at such events and no body wants to be the bad guy, they end up getting false hopes about coolness of their startup. The only solution to this is getting away from ego-boosting talk at startup events and actually testing your product validity with customers and being ruthless at that. ... Read the entire post →

Startup: an emotional roller coaster ride

March 5, 2011Paras ChopraEntrepreneurship, Personal8 Replies

February was a great month for my startup (Visual Website Optimizer). All metrics that you can care about worked in our favo. Increase in number of customers, revenues, users (and yes, Twitter followers too). We also hired our first employee and are looking forward to hiring 2 more. (Please apply if you are in Delhi and someone you know is in Delhi and wants to work with us).

If everything seems great, why do I call this an emotional roller coaster? Well, that’s because just like a real roller coaster there is always a lingering fear that we may not be in existence 12 months down the line. When established companies such as MySpace with hundreds of employees face uncertainty, how can our small team afford to be complacent. ... Read the entire post →

Do a startup or travel around the world?

December 25, 2010Paras ChopraEntrepreneurship27 Replies

Every time I watch Discovery Travel & Living on TV or read Lonely Planet magazine, I desperately long for travelling around the world. This feeling intensifies after reading posts such as 8 Exotic Destinations You Can Afford. I get all pumped up ready to pack my bags. But then I realize: Oh wait, I have a startup.

Startup requires a lot of sacrifices from you. You have to work extremely hard (think 100+ hours per week) for several years. All this hard work is justified in hope of an eventual big pay-off which may happen in a year, five years or may not happen ever. That big-payoff has potential to make you financially independent and then you can go travel the world (or explore other exotic interests such as taking a stab at string theory). But the big question is what if that eventual pay-off never happens? It is certainly a possibility because majority of businesses will either fail or will become self-sustaining for years to come. Acquisitions, IPOs and FU money is a rarity, not a norm. ... Read the entire post →

Business ideas are dead; chase after market opportunity

November 29, 2010Paras ChopraEntrepreneurship8 Replies

In my previous blog post titled “How making money changed my perspective on startup ideas“, I argued that business ideas don’t have a lot of value in isolation. It is the market opportunity coupled with good execution which generates value and revenues. In this post I want to go one step further and argue that most successful (software) companies got there by chasing a market opportunity and not by having a unique business idea.

Take example of any successful software company and you will find that their business idea was not unique. You say Facebook, I say Friendster. You say Google, I say Altavista. In fact, I think citing such examples is not a good idea because odds of a startup achieving a billion dollar valuation (and becoming a brand) are close to none. I am more interested in knowing how the “long tail” of software companies achieve million dollar plus revenues. That’s a realistic, achievable target and the odds of your startup becoming a Fortune 50000 business are much higher than it becoming Google. So, we should drop the dreams of IPO (for now), let’s just see how businesses make million dollar revenues. ... Read the entire post →

Startups and Nihilism don’t go together

November 7, 2010Paras ChopraEntrepreneurship, Personal, Philosophy10 Replies

Note: if meaning of life and startups don’t excite you, it is recommended that you skip this post. You will find it boring.

I know this is a weird title. But I have finally convinced myself that you cannot afford to be too philosophical if you are doing a startup. Doing a startup could turn out to be a terrible experience for those who especially adhere to philosophy of Nihilism. For those who aren’t aware of Nihilism, it says that life has no meaning or purpose and is in fact pointless. This philosophy was popularized by the German philosopher Nietzsche and became popular with atheists. After all, if there is no God, what’s the point of life? ... Read the entire post →

The Turing-roulette Game

August 22, 2010Paras ChopraPhilosophy

I don’t know if it has been proposed earlier, but the other day I had an interesting idea about creating a variant of Turing Test and mashing it up in a Chataroulette kind of environment. As you may be aware, Turing test comprises of a game where a human chats with an unknown entity (which may be a computer or another human). The job of a human is to figure out whether the entity is human or a computer. It is proposed that if a computer passes Turing test (that is, if it manages to fool the human into thinking that it is a human), then we may call that computer “intelligent”. Unrelated to Turing test, Chataroulette is an online site where random strangers are paired up for chatting. ... Read the entire post →

Compilation of revenue figures for different kinds of startups

June 6, 2010Paras ChopraEntrepreneurship, Personal10 Replies

Imagine for a moment that you have created a new web app and after about 3 months of launching you are doing $2000 per month of sales. Would you consider yourself as a successful startup?

Well, you are already ahead of majority of startups which never get to see any revenue. So, in that way you are doing good. Plus if $2000 covers all your human and infrastructure cost, that means you have broken even and are doing really well. Is breaking-even the measure of success for a startup?

You certainly didn’t take the risk to earn just-enough money. Why would you leave your day job if your goal was to just break-even? So, this directly takes us back to our original question – when do you say that your startup is a success? ... Read the entire post →

Startup evolution – from idea to IPO in 10 really hard steps

November 2, 2009Paras ChopraEntrepreneurship, Philosophy5 Replies

1. Having an idea is easy (not a problem at all)
2. Creating a product is hard (development problem)
3. Creating an awesome product is even harder (execution problem)
4. Having people notice it is real hard (marketing problem)
5. Making people use it is very, very difficult (credibility problem)
6. Generating cash out of it is simply not doable (sales problem)
7. Generating money and being profitable consistently is impossible (business creation problem)
8. Having successful multiple product lines is you-must-be-out-of-your-mind (successful business creation problem)
9. Rejecting acquisition offers is way, way harder (because it is tempting and odds are that you will never reach till that stage)
10. Doing an IPO is the ultimate hardest but simply awesome ... Read the entire post →

So, you have a million dollars. Now what?

March 23, 2009Paras ChopraEntrepreneurship, Personal, Philosophy13 Replies

Suppose you win a lottery or get a successful exit for your startup. You suddenly find yourself with a million dollars to play with. It is like what you always dreamt for has become a reality. At this point, what would you do? What would your future look like?

It is hard to imagine not having fun with a million dollars in bank. But that is precisely what I (sadly) concluded after thinking deeply over this issue. There are multiple reasons why I think a million dollars won’t bring me the freedom, happiness and euphoria that I had thought were main motivators for me. ... Read the entire post →

Golden Rule for Startups

November 15, 2008Paras ChopraEntrepreneurship, Personal4 Replies

If you are like most of the entrepreneurs, you want to find a business idea which can change the world and make you a famous millionaire. Plus you want an idea which is not hard to execute so that you may have best of all worlds. There is nothing wrong with this thought, except that either it is impossible or you need heavy doses of luck to make it a reality.

Easy to start and execute businesses rarely make it big. If you are thinking of writing an application which will revolutionize the web overnight, forget it. If you are thinking of coming up with a business model which will rock the world and make you arrive on the scene instantly, forget it. ... Read the entire post →