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General thoughts on startups - Kunal Shah and Bhavin Turakhia

General thoughts on startups - Kunal Shah and Bhavin Turakhia

How much part does curiosity play in being successful?

  • Curiosity is a means to a different end
  • The end is finding insights
  • Insights are shortcuts to big impacts
  • abstractions -> insights -> businesses -> impact
  • most of the indian founders "struggle" their way through, since we are just now aware of the concept of "being curious"

Thoughts on Market Research

  • The concept of DIM (Discovery Implementation Measurement)
  • Majority of your time should go in Discovery and Measurement
  • What's DIM?
    • Discovery: Validation, Market Research, Talking to people
    • Implementation: Build out on your Discovery results
    • Measurement: Measure and get to know if your hypothesis was correct?

Thoughts on Hiring

  • Be slow at hiring important people
  • Its okay to date for a very very long time
  • Meet many many times in formal, informal settings
  • Get drunk with them and see if you still like them
  • Do more of that until you feel that conviction

Thoughts on pivoting

  • The concept of failure was invented to designate an event
    • Like this event was a failure
  • But somewhere down the line, we started applying that term to people
    • People are not failure, events are failures
  • The valley has defined a new word for failure now, which is pivoting
  • If this word (pivot) actually stops people from giving up, then this is great

Thoughts on founder-investor meetings (by an investor)

Most of the meetings with founders go like this:

  • the investor starts asking rapid fire questions for a duration of 30-45 mins
  • followed by the founder asking questions to the investor
  • most of the time, the investor gets asked only 2 questions
    • what's your fund-raising process?
    • when will you get back to me?
  • that's it!
  • very few founders realize that the investor that they are talking to, have already met a lot of founders in your sector
  • they don't ask good questions

How to know if you've got the product-market fit?

  • Start with 100 customers
  • If in the next month, you are left with 0 customers, you've got a leaky bucket
  • fix the leaky bucket and you will get the product-market fit
  • so if you have 80 customers still using your product at the end of 1 month, you've achieved product-market fit

Focus on creating value, not valuation

Think with first principles

How to find those ideas that could lead to original businesses in the future?

  • You never scout for ideas, you scout for insights
  • Scout for ideas only when you want to copy the model
  • Scouting for insights means:
    • What are people doing?
    • How are people paying?
  • While searching for original ideas, you first need to understand about humans and human behaviour
    • You know nothing about humans and human behaviour
    • Your customers are human, your investors are human, everyone you interact with is a human and you have no clue about humans
    • Spend a disproportionate amount of time understanding what human behavior is
    • and what people's motivations are
    • people will always pay money to get their motivations achieved
    • if you don't understand the concept of motivation, you'll never create value

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