Sunday, 17th December, 2017

Snippets

Person shuts down his startup after it makes profit within the first year

04, Dec 2017 By Santosh Pradhan

After an initial burst of exuberance in startups, the industry is beginning to moult. Risks are better understood and founders are understanding the importance of using the funds properly. Entrepreneurs getting funding these days are older people with experience, mapping a clear path to profits and who rely more on niche. But the older myths have still lived on. People don’t recognize startups which turn profitable in a short span of time. In fact most youngsters believe that a successful startup should have some initial struggling years to convince investors that they can weather the storm. Jagdish Malik is one such entrepreneur who took the drastic measure of closing down his company after turning profitable in the first year.

Capture

Jagdish was a startup enthusiast ever since his B-School days. In fact he tried to start everything by himself, right from his starting his motor bike, starting a discussion or even starting a fight. It was last year when his dream of starting a online travel company came true and ‘GhoomoPhiro’ started taking big strides in the online travel space. Soon he started getting funds from big investors and being in a asset light industry he even started making profits early. It was only when he met a fellow successful entrepreneur named Sanil Jain, that he realized that making profits is not what makes a Startup successful. Sanil whom Jagdish knew since his college days, is himself a owner of 3 startups and all doing pretty well. But that was not the case in the beginning. After constantly making losses for 2 years, Sanil was able to convince the investors of the hard work he is putting in and showed them the road map for the future years.

Jagdish was blown away by the explanation Sanil gave about successful startups. Making profits would never allow a startup to be in news. The struggles and the hardships of the initial years makes a startup famous. Jagdish was so convinced by the discussion that he chose to close down his dream startup. But he has promised to return with another idea which will not guarantee profits in the first year.