Ideas are great, but finally, in a country like India, the difference between success and failure comes down to execution and culture, said Aditya Ghosh, board member, Oyo Hotels and Homes
Entrepreneurs also need to be mindful of not getting carried away by the financial numbers, such as valuations
While great ideas are needed to create a successful startup, the factors that actually determine the long-term success and the ability to scale up the business are execution and culture.
“Ideas are great, but finally, in a country like India, the difference between success and failure comes down to execution and culture. I see those as very similar. What’s different is that the pace of change is that much faster and the geographic spread of a company such as Oyo is significantly larger and now there’s a lot more attention," said Aditya Ghosh, board member, Oyo Hotels and Homes. Entrepreneurs need to build a governance structure that is transparent, clear, and simple.
“We’ve been profitable for four years and when the liquidity crisis hit, we were in a situation where we were a profitable fintech serving a unique market space. We’re doing it in a governance structure that is clear, transparent, and simple. Sometimes simple is the best," said Hardika Shah, founder, Kinara Capital.
Entrepreneurs also need to be aware of the various traps that one can fall into while chasing rapid growth.
“People don’t think about the legalities and boundaries within which they work. It’s very much about getting the product into the market and getting the customers, doing the pilots...you’re doing everything to make the idea work. You’re not thinking about what the corporate governance or what kind of funding you need or what are the nuances of the sector you’re working within," said Kosturi Ghosh, partner, Trilegal.
Entrepreneurs also need to be mindful of not getting carried away by the financial numbers, such as valuations.
“At different times of a company’s evolution, the first metric might be how many people are using it, then what’s the revenue and then it will be profitability and cash flow, and the valuation will move according to that" said Sumer Juneja, partner and head of India, SoftBank Investment Advisors.