Why our world would end, if start-ups disappeared?


This is one crazy year, my direction in career changed due to various reasons. During crazy year have been seen various paths (Investment arrangement, start-up consulting).  Some of the learning’s are documented here.

Usually, people think, start-up is the very straight forward journey. But after successive failures, you see the final success (if firm is still alive).


IDEAS – dime a dozen

There are many start-ups’s are just following earlier start-ups or creating same models of facebook, Amazon, micro-soft, Apple, eCommerce and mobile applications.
Innovation is missing everywhere. Unless  you innovate, you are bound to fail.
A start-up should decide what is way forward?
What are we achieving by doing this?

No one wants another “eCommrce” or “Quickr”?


If you can not innovate, it is better you ignore you startup idea. 

It is learned, people chase wrong products, ideas, people, co-founders.  You would need have all departments covered.

Business model first?

Usually, people plan a journey and see pros and cons, before they start their journey. You need a road-map.

First and foremost thing is working on “business model canvas”

MVP

Image result for people need faster horses

Enterpenuer connect

CEO’s or founders to be connected with all departments. Rather than micro-managing plan all departments, plan for each department owned by each individual

De-centralization of the activities. Each every team should have daily check-points, rather than CEO or founders taking all responsibilties.

In start-up’s it is essential to focus on each departments.

Image result for hub and spoke organizational model
1. Product dev

2. Marketing

3. Pre-sales

4. Funding

5. Loans and investments

Simplest way of exit strategy:

Simplest way ……..
 
There is no way ………………..
 
 
Unless you plan one.

Image result for planning for exit

 

“Test Driven Development” VS start-up planning

In “Test Driven Development”   you make/write one program, before that you write a test case to fail/Pass. 
 
If a student fails the exam, he/she failed during the entire year. It is not that day alone. Planning for failure is the “fist step in ” entrepreneur ship.

 

Unless you plan for an exit strategy, you will exit without a trace.  Same is applicable for job/revenues. Planning one would always help. 

Where are we travelling?

The pitch deck is a presentation (an elaborated resume of the firm) which is used in firm and investor connect. The last and final slide is “exit strategy”.

In other words, what if fails?

  • In general project management
    • Risk mitigation is defined as taking steps to reduce adverse effects. There are four types of risk mitigation strategies that hold unique to Business Continuity and Disaster Recovery. It’s important to develop a strategy that closely relates to and matches your company’s profile
  • Plan to risk from the beginning
General thought on exit:
1. It is always good to aim high.
2. Having planning at high is good.
why don’t think an exit strategy???
Thinking “what if fails?”  is actually good entrepreneurs strategy.
 
I am not PESSIMIST, if you are planning “Everything” well does not help anyway
1. You can not have 15 years (housing/Office) lease, thinking that your firm will become next FACEBOOK, GOOGLE, MICROSOFT.
2. Keeping it low is always good.
Image result for planning for exit

 

Hope this helps

 

Why life planning will make you question everything


What is work? 

Mukund Mohan (@mukund)  is a serial entrepreneur. He has written many inspiring articles and well known for his leadership in start-up world:)

Work” is really a man-made concept. As a friend put it yesterday, it is exchange / creation of value for goods and services desired. If we can abstract why we need to work from why we want to work, then it becomes a question of bringing value to another human’s life.


Flipkart App Continue reading

Big Fish Eat Little Fish


Big Fish Eat Little Fish  or Small Fish Eats Big Fish?

  • Big Fish Eat Little Fish :  IBM or Microsoft eating Little fish
  • Little Fish Eat Big Fish :  New entrants eating away Big Fish ( Read Facebook, Amazon, Google)

 

 

 

 

 

 

 

Without going on fishing for long, let us get into to another story (movie 1998  )

YOU’VE GOT MAIL (1998) –  American Movie

Director: Nora Ephron ; Starring: Tom Hanks, Meg Ryan and Greg Kinnear.)

This is very beautiful movie, where girl meets boy on chatting. They fell in love. Incidentally girl is owner of small book store. Boy comes with bigger store, now keeping girl’s business out.

The gist of it, big book store like “Barns and Nobel /Borders” keeps smaller book store “out-of-business” . The competitor bulldozing the existing market players is the key here

Beautiful love saga and romance between two great actors is the fresh blood in love stories with a technology mix. I also loved Titanic, Perfect Storm and Message in the bottle movies in the same time zone.

Big/New/Innovative fish bulldozes exiting market players 

  • Amazon.com has supplied books via internet
  • E-Books, Kindle came
  • Because of this traditional book store’s market got collapsed
  • This affected, other small players ; Player who are not migrated got declined or collapsed (into thin air.

So why organization(s)  fail?

  • Organizations compete in same market space and fight for the same cake like kids (fighting for the same toys ). It is “Red ocean strategy”
  • Over bidding and underbidding, getting into malpractices
  • They fight for existing market piece than moving into un-explored territories

  • Taking over, bulldozing the existing market place.

 Any tools to use to see and prevent? 

Oh my god, do we have strategy to do and analyse?

Few tools, for

1. PEST Analysis :

  • This is a useful tool for understanding the market growth or decline, and as such the positions and direction for business
  • PEST  is Political, Economical, Social and Technological factors
In the above example book store business , all above factors can be considered

2. Michel Porters : Five Forces Model

It is a frame work to analyze the level of competition within the industry and business strategy development.

3. Value Chain :

It is set of activities that a firm operating from specific industry performs in order to deliver a valuable product or service.

Cost Advantage: Better understanding the costs and squeezing them out of value-adding activities
Differentiation : By focusing on those activities associated with core competencies to perform them better than competitors

Primary activities  are related to manufacturing industry.

4. SWOT analysis

(Self explanatory)

Hope this helps

Statement of work or purpose


This is something like coffee, tea or me.   Keeping that aside of meaning of this statement, let us analyze(what to analyze?)

  • “is plant first or seed”?
  • “hen/chicken or egg first”?
Too much confusion, on above?
  • Only Darwin can help or someone can help on this conversation?
Coming to our main topic, after everyone walked away from this article (finally)
  • Statement-of-work is a one thing, what we do. For example construction of 3 bhk home. It does not say, what is the value-add?. How does end customers benefit?.  Did you find some statement like, home in the park or two minutes driving distance from financial town.
  • In the software terms , it does not say value add. Additions of componemts and module’s it will talks about.

Statement of purpose example:

  •  To deliver “xyz” feature or elimination of the manual entry.
  • To reduce downtime
  • To increase sales by ten folds
Any more thoughts on this?

WhatsApp Architecture


Welcome to the architecture of the decade , WhatsApp 🙂 in terms money got from Facebook 🙂

WhatsApp Messenger is a cross-platform mobile messaging app which allows you to exchange messages without having to pay for SMS.

whatsapp_tweet

WhatsApp is disruptive SMS technology on your phone (via internet).

What is underlying architecture?

It was not LAMP ( Linux, Apache, MySQL , and PHP front end) thought?.

We have discussed LAMP in facebook and Zynga architecture .

LYCE/LYME architecture

LYME and LYCE are solution stacks composed entirely of free and open-source software to build high-availability heavy duty dynamic web pages. The stacks are composed of:

  (The above is from wikipedia, and self explanatory)

Hardware

  • Dual Westmere Hex-core (24 logical CPUs)
  • 100GB RAM, SSD
  • Dual NIC (user-facing, back-end/distribution)
  • FreeBSD 8.3
  • OTP R14B03

(from Rick Reed, software developer’s slide pack of WhatsApp)

Key functionality

Instant Messaging: is a type of online chat which offers real-time text transmission over the Internet.

 Enter Ejabberd

Ejabbered is XMPP server which provide quite good features of open source, Whatsapp uses some modified version of this, facebook messaging also uses a modified version of this. Some more chat applications likes Samsung’s ChatOn, Nimbuzz messenger all use ejabberd based ones.

XMPP is “Extensible Messaging and Presence Protocol”   is a communications protocol for message-oriented middleware based on XML.

XMPP is a relatively simple protocol that occurs over TCP sockets using XML messages

Simple XMPP architecture is as follows:

 Diagram of a more complex XMPP architecture, with XMPP gateways connecting to SMS and SMTP clients and servers

Ejabbered architecture is as follows:

File:JabberNetwork.svg

Enter Erlanng Factory

Erlang logo.png

The Erlang Factories are a grounded, hand-on-the-wire point of inspiration where you meet the people who make and use Erlang. They are about the people, not just the language. –

Dave Smith (Author of Rebar)

Erlang factory uses the modified Ejabbered technology.

This is very high level architecture, will publish ,more on this architecture.

Hope you like it, pl fell free to comment 🙂