A Good Startup is one which can earn money quickly

In Iran, money continues to be in the hands of the traditional markets. The economic reality of our country today is that the amount of capital that is available in innovative businesses and startups is not much in the face of the capital that exists in the hands of traditional and family businesses.

The economy of Iran relies on oil and traditional structures, and the innovations in it are like radiation of light from small apertures. The general belief is still investing in property and land, and businesses with early returns. For someone who can not take risks, high bank interests of Iran are perfect .

In these circumstances, those who are willing to risk their money on a start-up that is full of uncertainty are those who are very wealthy and they invest only a small fraction of their money mostly to fulfill their corporate social responsibility, or they love innovation and technology, and they have found the perfect team and they think they will receive more value than bank interest.

Startups should be able to cover their expenses

A business that does not pay the bills  is not a viable business.

Many startup teams that come to us have interesting ideas and plans, and the quality of teams are good, but they have a major problem. They do not know how they can make money.

An innovative startup should try to see how, in practice, it can create a business model that can provide value to the customer and receive money in exchange for it. It may even take years to figure this out and costs will be covered by investors money, if that innovation is so unique that it is worth the cost and time.

An example is Instagram, which did not earn revenue for up to 2 years after launch, but was sold to Facebook for $ 1 billion.

But this does not apply to all startups!

look for the “Innovative” keyword. I must confess that among the thousands of startup I’ve seen, there are so few in the true sense of being “innovative,” and that innovation in people’s lives was creating value added and simply not being copied.

Also in Iran there are respectable startups which are essentially a copy of a successful foreign businesses  such as online taxis. Innovation in these startups is to localize the business model or is limited to building a Persian version of the app or website and connect it to the Iranian payment systems.

In the next place, there are those who copy Iranian internet businesses. Dozens and hundreds of online taxi apps and online stores that according to their founders their advantage is that it operates in a particular province or city. And last but not least, comes projects that do not solve a particular issue or need for a good number of people.

You need to pay close attention to the startup costs. Startups should find the shortest and fastest way to reach an income that can cover their costs. Having such a way, initial capital is less needed, and therefore, it is not necessary to give a large portion of the stock to the investor.

 

Founder of Khoshfekri.com, Co-Founder & CEO at TAC Startup Accelerator, Software engineer, JTBD & Lean Startup evangelist from Tehran, Iran.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to Top