Entrepreneurship is a long battle; build enough reserves for the fight!
It can be intimidating for a well-paid professional to quit his/her cushy job and pursue the entrepreneurial dream. However, if entrepreneurs keep a few key points in mind, life would be less complicated.
The aspiring entrepreneur should always plan his/her future smartly, especially if you have a dependent family and responsibilities to shoulder. One should budget for three years of no income and build a cache to take care of expenses and family needs. In the early years, there is the possibility of making less or no money at all. Do bear this in mind before taking the plunge.
Sacrifice that extravagant lifestyle
The founder of a startup should live a simple and frugal life. He should cut out unnecessary expenses and distractions. In short, forget going to late night parties every weekend and give up on avoidable shopping indulgences. Such sacrifices would not only make life simpler but also give the needed urge to achieve your goals.
Be prepared for uncertainties
One should be aware that the first attempt at building a startup may not always work. It is sheer stupidity to daydream of becoming a millionaire overnight. One should build mental and financial reserves for a long-term battle.
Research, research and research!
You would not go anywhere without proper knowledge of your sector and the target audience. Venture out in the market. Try and meet 100 potential co-founders and employees to get their perspective. Immerse yourself in the startup ecosystem to get a feel of innovation and real life challenges.
Money is important but it is more crucial to be surrounded by trustworthy adviser. At the very outset, you should bring on board a couple of trusted and plugged-in advisers. Ideally these advisers should also be a part of your friends or family circle. You should approach different type of investors at different stages of evolution. When you are ready with the product or have some traction, you should approach angel and seed investors.
(Rajesh Shawney is the founder of GSF Accelerator. Recently, he founded InnerChef, a food technology startup. The entrepreneur cum investor recently invested in video content platform Glamrs along with other angel investors. As told to Techcircle.in correspondent Priyanka Sahay.)