🤐 Startup Survival Secrets

Plus: Simple Acts That Make a Difference, Reliance’s Foray into FMCG.

Author

Chai Sip
March 27, 2023

ISSUE #037

☕ Good Morning! Sippers,

Launching a startup is an exhilarating experience for any entrepreneur. The thought of bringing a new idea to market and making an impact on the world is incredibly exciting.

However, the harsh reality is that most startups fail within the first few years of their existence.

In today’s Issue 📥 :

  • Startup Survival Secrets.

  • Simple Acts That Make a Difference.

  • Reliance’s Foray into FMCG.

SIP WORTHY

Startup Survival Secrets: How to Beat the Odds and Build a Thriving Business

📖 According to studies, only 20% of startups survive for more than 5 years, and only 8% manage to make it past the 10-year mark. So, what can founders do to increase their chances of success? Let’s explore some common pitfalls to avoid and key strategies for building a profitable business.

📦 Focus on Value-Building and Product Launch: One of the biggest mistakes that founders make is spending too much time and money on branding and marketing, without prioritizing the value-building and product launch process. While branding is important, customers care more about the value that the startup can provide.

Founders should focus on getting their product to market quickly and gathering feedback from early users to improve the product. This means postponing high brand spending until the business is more established.

📑 Implement Product-Led Marketing Principles: Founders also need to recognize that product-led marketing is more than just launching a great product and hoping for the best. It requires a deliberate strategy that puts the product at the center of the customer experience.

Founders should be the first salesperson for the company, connecting with potential customers face-to-face to convince them of the product’s value. They should also be willing to adjust their strategy based on customer feedback.

🫂Build a Great Team: A great team is essential for executing the startup’s vision and delivering products quickly and reliably. Founders should seek out a co-founder with complementary skills and hire the right people to deliver on the business objectives. A strong team will help to build momentum and increase the chances of success.

👂🏻 Continuously Listen to Users and Improve the Product: After launching a product, founders should continue to listen to users and make improvements based on their feedback. Users are ultimately responsible for the success or failure of a product, so founders should always ask themselves what problem their product solves and whether it offers a unique solution in the market. They should prioritize the essential features for launch and consider adding additional features over time.

👛 Be Disciplined with Finances: Investors closely monitor a startup’s spending and expect them to take prudent steps to ensure the sustainability of the business. Founders should grow at a controlled pace and track costs carefully to avoid using up cash reserves too quickly. Investors want to see traction and progress, not just big ideas or nice charts.

🏆 Be Mindful of Awards: Recognition from peers and the industry can be motivating for any entrepreneur, but founders should be mindful of awards that are offered in exchange for sponsorships. Such awards can often do more harm than good.

⚖️ Building a Scalable Business Model: Once a startup secures funding, the real work begins. Founders must focus on building a scalable business model, efficient sales and distribution channels, and delivering an exceptional customer experience.

This requires a strong team and a disciplined approach to growth.

Building a successful startup is not an easy task, but it is possible with the right approach. Founders should prioritize value-building and product launch, implement product-led marketing principles, build a great team, continuously listen to users, be disciplined with finances, be mindful of awards, and focus on building a scalable business model. By following these strategies, founders can increase their chances of success and build a profitable business that stands the test of time.

IMPROVEMENT SIP

The Power of Kindness: Simple Acts That Make a Difference

In today’s fast-paced world, it can be easy to overlook the importance of being kind. We often get caught up in our own lives, and we forget that simple acts of kindness can have a significant impact on others.

However, as we get older, we begin to appreciate the value of being kind and compassionate towards others.

One case study that illustrates the power of kindness is the story of Chris Nikic, who became the first person with Down Syndrome to complete a full Ironman triathlon. During his journey, Chris was accompanied by his coach, Dan Grieb, who motivated and encouraged him every step of the way. After the race, Chris said, “My coaches, they push me and believe in me, and they helped me make history.” Dan’s kindness and support helped Chris achieve something that many thought was impossible.

Another example is the story of an airline passenger who witnessed a mother with a crying baby struggling to calm her child during a flight. The passenger offered to hold the baby for the duration of the flight, allowing the mother to rest and relax. The mother was overwhelmed with gratitude, and the act of kindness made the flight much more manageable for both her and her child.

In the words of, Leo Buscaglia, “Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around.” This quote highlights the importance of simple acts of kindness and how they can have a profound impact on someone’s life.

Being kind costs nothing, but it can have a significant impact on others. From congratulating someone on a job well done to forgiving someone for their mistakes, simple acts of kindness can make a significant difference.

As we get older, we realize the value of being kind and compassionate towards others. So, let us all strive to be kind and spread kindness wherever we go.

Remember, you never know how much a small act of kindness can mean to someone else.

HOT SIP

Reliance’s Foray into FMCG: Disrupting the Personal and Home Care Segment

(Photo by Prodip Guha/Getty Images)

What’s sipping? ☕ Reliance, led by billionaire Mukesh Ambani, has stepped into the personal and home care sector of the FMCG industry by introducing products that are 30 to 35% cheaper.

Reliance, led by billionaire Mukesh Ambani, is known for its disruptive strategies, and this time it has entered the personal and home care segment of Fast Moving Consumer Goods (FMCG) with a competitive edge. Reliance’s FMCG arm, RCPL, is offering products at 30 to 35 percent lesser prices than leading brands such as HUL, P&G, Reckitt, and Nestle, which have dominated the USD 110-billion FMCG segment. The company is building a dedicated distribution network, comprising traditional dealers and modern trade b2b channels to scale up the availability of its products across the country.

RCPL’s Competitive Pricing Strategy: RCPL has priced its Glimmer beauty soaps, Get Real natural soaps, and Puric hygiene soaps at ₹25, which is much lower than the products of leading brands such as Lux, Dettol, and Santoor, etc. Its Enzo 2-litre front load and top load liquid detergent are priced at ₹250 (on Jio Mart), compared to a 2-litre pack of Surf Excel Matic priced at ₹325. For Enzo front-load and top-load detergent powder, it has priced at ₹149 for 1-kilogram pack (on Jio Mart).

Industry Experts Weigh In: According to Arvind Singhal, Technopak Advisors Chairman, Reliance has earlier successfully disrupted the market in the telecom sector with its prices. Experts say a competitive offering from Reliance in the personal and home care segment would attract customers to try its products and evaluate performance, quality, and perception compared to established brands.

Rajat Wahi, Deloitte India Consulting Partner, believes that with better technology, ingredients, and support available, it has become easier for new and existing players to develop and launch brands today, reflected by many new D2C/consumer brands launched every day across packaged food, beauty, health, wellness, etc. However, the real challenge for most brands is scaling up and reaching consumers across physical retail, especially the general trade in India, as e-commerce accounts for only 4-5 percent of retail.

Future of FMCG in India: Pallab Roy, Partner at KPMG in India, says the Indian FMCG space has become interesting with many companies announcing their forays and investments in this space. It continues to have attractive margins with good scope to grow, moving from loose to packaged products as well as consumption per capita. However, creating iconic FMCG brands with pull and a formidable distribution network takes time and investments. The FMCG industry will transform further, and this will work out better for the consumer.

SMALL SIPS

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🎥 It’s Interesting: Indian cinema, popularly known as Bollywood, is the largest film industry in the world in terms of the number of films produced annually. In 2019, a staggering 1,813 films were produced in India, surpassing the number of films produced in Hollywood. Bollywood films are known for their vibrant colors, elaborate song and dance sequences, and dramatic storylines that often explore themes of romance, family, and social issues. Indian movies are not only popular in India but also have a huge fan following across the globe, especially in countries with large Indian diaspora populations such as the United States, Canada, the United Kingdom, and Australia.

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