While the metropolitan cities in India are fast emerging as major startup hubs, claiming international attention over the last few years, the smaller states like Assam have been rather late in joining the startup bandwagon. Despite a not-so-conducive startup environment, startup entrepreneurs like Hironmoy Gogoi have been able to dodge the bullets and emerge as startups grabbing national limelight.

The founder of the national award-winning food-tech startup from Assam, Gaon Ka Khana (GKK), and the youngest author in India to pen a book on entrepreneurship, “The Future CEO”, Hironmoy’s startup journey has been speckled with struggles and failures. But, he is hopeful that the Government of Assam’s Startup Policy 2017 will manage to transform Assam into a major startup hub of the country in the coming years.

Taking cues from Hironmoy’s startup struggle, we have listed out 7 startup hurdles in Assam and how the Assam Startup aims to overcome them.

A Dearth of Technical Knowhow

In a state where entrepreneurship is still a fancy option queuing behind a ‘more practical’ government job or corporate employment, a professional approach to startups is still wanting. Though young entrepreneurs from other states scripting success stories have managed to inspire the Assamese youths, the latter are yet to master the technical layers of entrepreneurship.

How to develop the idea and make it market ready? How would the product/service benefit the customers? Who are the target customers? How to source the funding? What kind of team would best suit my startup? How to market the product? How to create branding and visibility? What should be my medium of product selling? How to take care of the logistics? The aspirants are mostly left to learn about these complex aspects of a startup business sans any professional mentorship. On account of a dearth of specialized guidance, the new startup entrepreneurs have often given up before they could hardly begin. As Hironmoy puts it: “Having a brilliant idea isn’t enough. One must have a foolproof business model in place.”

Solution: The state-owned marquee incubator, Assam Startup – The Nest has been launched to address this very issue and guide the new entrepreneurs towards honing entrepreneurial skills. Apart from grooming the incubatees, The Nest also organizes workshops, seminars, and mentorship sessions for startup enthusiasts.

Lack of Regional Angel Networks

Early stage startups are mostly funded by angel investors. Venture capitalists enter into the scene much later when the company has established a decent grip in the market. Sadly, there has been no conspicuous angel investors in the state. Hironmoy recalls his own experience when he missed bagging a fund from a national angel network on the ground that there was no local angel investor in the state. Asked about the reason, he holds accountable the state’s relatively embryonic familiarity with the startup phenomenon. Also, most businesses here are yet to give a free hand to the axiom, ‘investing in a business is also a business.’

Solution: Under the Assam Startup Policy, the Government of Assam has committed to encourage investors, industrialists, successful entrepreneurs, and highly experienced business executives and professionals to create Assam Angel Network (AAN) to cater to the early stage funding needs of the startups in Assam.

The Policy also makes room for seed fund of Rs. 5 lakh and scaling grant of upto Rs. 50 lakh for startups who are issued the My Assam Startup Id (MASI) under the Assam Startup initiative.

Shortage of Industry-ready Job Seekers

Though Assam has no dearth of academically qualified youths, the state is still wanting in key employability skills that usually turn an employee into a company asset. Especially a startup environment demands versatility and multitasking skills. A successful startup execution depends hugely on the sharpness and adroitness of its team. Unfortunately, as Hironmoy says, the average mindset in the state revolves more around ‘studying to get a job instead of studying to deserve a job.’

Solution: Innovation-based evaluation at the academic level can be helpful. As Hironmoy says, assigning mandatory projects of innovation to the students of higher education could be a bankable option. In fact, the Assam Startup Policy 2017 has already reserved provisions for the needful academic interventions in order to sharpen the problem-solving acumen and inculcate the entrepreneurial qualities in the students.

Deficit Homework on the Revenue Model

An average number of aspiring entrepreneurs in the state hardly have a definite idea about the revenue model. It isn’t enough to build a product. One must have a clear idea and strategy about the types of revenue that the startup could generate. It could be earned through direct product sales, advertisement sales, service fees, data access fees, etc.

Solution: “One must plunge into the business only after formulating a clear revenue structure. At the very outset, he/she must put down on papers in bold letters the step-by-step plan for revenue sources and expansion. Make no haste to step into the field until you are ready with a clear cut revenue structure,” Hironmoy recommends.

Assam Startup – The Nest would guide the incubated startups in rolling out a foolproof revenue model suitable for their business. They would be exposed to the best-in-the-business mentors who’d even out all the doubts and dilemmas for chalking out an unerring revenue model.

Limited Co-working Space

Co-working space has been an issue in Assam. For startups, who mostly bootstrap in the early stage of their business, it becomes almost impossible to afford an extensive and exclusive office building on lease. As a result, we see a number of entrepreneurs operating from their homes with minimum infrastructure and office stationery. It shouldn’t surprise anyone that Hironmoy had to start the operations from the storeroom of his house.

Solution: Though Guwahati is slowly witnessing the rise of a fingerful of co-working setups, things haven’t been progressive in rest of the towns in Assam. Taking note of this, the Assam Startup Policy 2017 has introduced a Hub & Spokes model for ensuring a more inclusive reach in the state. While Assam Startup – The Nest stands as the incubation Hub with various ancillary infrastructure and offering co-working space, a number of specialized institutions across the state, especially the educational institutions, are encouraged to open incubation centres and co-working spaces for the startup units.

Need of Co-Founders

Instances of startup entrepreneurs taking a back-foot due to the inability to find a competent co-founder are found copiously in the region. Hironmoy delineates the situation most accurately: “We see young people deciding to club together to start a venture during the most unceremonious conversations in the most informal setups. Unfortunately, such partnerships hardly survive. Within a few months, finding himself in the dire straits of a startup struggle, a partner is often likely to exit from the project with motley excuses.”

Solution: Hironmoy suggests a more professional and farsighted approach while looking for a co-founder. Being a startup enthusiast with brimming ideas isn’t enough. A co-founder must be matured, steady, and patient. It isn’t a partnership of a few years, but a rather long one.

Keep a keen eye around the surroundings, including social media. Be present at the right places at the right time where you are most likely to bump into like-minded people with serious entrepreneurial acumen. Attending the events and workshops at the Assam Startup – The Nest could introduce you to a few potential co-founders as well. Networking will hold the key. Watch out for the hackathons and boot camps at The Nest in the coming days for excellent networking opportunities.

Lack of Perseverance

Perseverance has been an issue among the youths in Assam. A number of startups started with fresh vigour. But not getting quick results, they had also shut down in no time. This could also be due to the youths’ lack of confidence in the entrepreneurial ecosystem of the state.

Solution: A successful entrepreneur never gives up grasping at straws when the going gets tough. Amazon founder, Jeff Bezos’ story from failures to success is an epic inspiration.

“I have made billions of dollars of failures.” Jeff Bezos.

The Assam Startup Policy 2017 also strives to nurture the confidence of the startups by shaping up a healthy startup ecosystem in the state and making the various symbiotic components of the ecosystem easily accessible to the startup entrepreneurs.

Assam Startup – The Nest initiated a meeting with the high net worth individuals (HNI) of Guwahati towards forming an Angel Network in the state for the startups on 9 May 2019. Sushanto Mitra, the CEO and Founder of Lead Angels, India’s first privately owned startup investing network, flew down to the city especially to attend the meeting and edify the HNIs about the value of investing in startups.

During the discussion, Sushanto pressed on the need to invest in the startups not just for the noble act of supporting new companies with disruptive ideas, but also for fetching handsome returns.

“A lot of entrepreneurs investing in new startups have made more money than they do from their own business.” Sushanto Mitra.

Sushanto further added that the whole world of investment is moving towards the world of startups owing to the new-age business’ incredible quality to create dominance out of meager capitals. They have the capacity to scale rapidly and become future monopolies. And their biggest strength lies in their ability to morph themselves according to a situation. A lot of angel investors acquire shares in the startups in order to learn these ingenious business techniques from the startups and apply them in their own business.

The founder of Lead Angels validated that though an angel network is formed with the primary motive to invest in startups, it graduates into a much valued business network. “Angel network becomes a way of doing business together,” Sushanto stated.

Owing to the fact that investing in startups is always a risky proposition, the HNIs inquired about the right methodology for deciding the startups to put their stakes on. Sushanto stressed on the importance of quality evaluation to ensure minimum loss. “Companies will go down. But if your evaluation is good, the rate of failure will be lesser,” he said.

Sushanto, nevertheless, was quick to point out that startup incubators can vastly improve the survival rates of the startups. And that’s where Assam Startup – The Nest will play a crucial role.

He suggested the HNIs to get an exposure to the startups that are getting invested in states with matured startup ecosystems, like Bangalore and compare them with the startups in Assam. They might also invest in one of those startups and learn as an angel investor. And then while the local ecosystem progresses, an angel investor might find interesting companies to invest in here.

“Start mentoring the local startups. When the right time comes, you will be the best person to invest in the startup you know in and out. And when you invest, the investors from outside will also be encouraged to invest in that startup,” he appealed to the HNIs present at the meeting.

Sushanto also answered to the queries from the HNIs, especially related to the processes involved in angel investment, the legal formalities, as well as the tax benefits of investing in startups.

Earlier during the meeting, Mrs. Manjula Saikia Bhuyan, Additional Secretary, Department of Industries & Commerce (FP), Government of Assam, thanked the HNIs for attending the meeting and appealed to them to nurture and mentor the startups that get selected for incubation at Assam Startup – The Nest. Quoting the crucial need of the hour for taking forward the products of innovation for production, she requested them to play a central role in commercially lifting up innovative ideas and products by young startups in Assam.

Pranjal Konwar, COO, IIM Calcutta Innovation Park, welcomed the HNIs and briefed them about the Assam Startup Policy as well as about the role of the IIM Calcutta Innovation Park as the implementing partner of the state-owned marquee incubator, Assam Startup – The Nest.

The swashbuckling incubator is gearing up to induct its first batch of startups for incubation. And this meeting was one of the important groundwork done towards creating favorable funding opportunities for startups.

Startups are hotly in trend. Enterprising people with teeming ideas are getting encouraged to transmute their scattered ideas into well-structured startups. And yet, one burning question that lingers among many startup enthusiasts is how to go about with a startup idea?

In this article, we try to address this very question. Pranjal Konwar, COO, IIM Calcutta Innovation Park, lays down a stepwise plan right from conceiving a startup idea to executing it.

Look for Problems

Your friend has started up and has even received a handsome seed fund. May be, you should think of a startup idea too, right?

Wrong.

Never look for startup ideas. When you do so, you might fail to add value from a market point of view. Rather than head scratching for a startup idea, start spotting problems. Once you know the problem, you realize the need for a solution. And once you realize the need, you can think of a solution. Voila! You just came up with an ingenious startup idea!

Remember, it isn’t enough to innovate a solution that isn’t solving a problem. So, before starting, ask yourself what problem can your idea resolve.

Uber Cab could taste phenomenal success because it managed to address a genuine problem. Booking an online cab used to be troublesome, relatively expensive, and unpredictable in terms of availability, and had no features for tracking the driver. Uber Travis Kalanick took an accurate stock of the scenario and decided to design a user-friendly mobile app that promises a hassle-free and pocket-friendly ride.

New or Evolutionary? Define

Startup ideas could be segregated into two categories: New & Evolutionary. Define your startup idea. Is it a breakthrough innovation? Or an evolutionary one, a bettered version of the existing product/service?

Look up the internet to see if your idea has already been executed by someone else. If yes, don’t get disheartened. Work up your mind for ways to metamorphosise the existing solution. You may come across startups who succeeded or failed with a startup idea similar to yours. Study their cases closely. Analyse the reasons for their success or failure. It shall help you in execution.

A startup idea is like one’s baby. You think it’s the best. Unfortunately, emotions don’t work in business. Be a tad more pedantic about your idea. Look for loopholes and improve.

Is there a Need?

While looking for a problem, make sure it isn’t your own bias-ridden problem, but rather a problem that infests a good number of people who shall constitute your chunk consumers. Do your research to confirm whether the problem in question is a problem the people are talking about too. According to the CBI insights, 42% startups fail because they try to ‘tackle a problem that’s interesting to resolve rather than those that serve a market need.’

Make sure your product has a need in the market. But before that, decide on the market and the probable customers you want to target. Conduct a field survey to understand if the probable customers are willing to accept a product/service like yours. Whether your innovation makes sense to them or not. If it does, define the category of those people and determine the segment size. And then try to develop a tentative idea of the amount they’d be willing to shell out for your product. Knowing your market holds the key.

Validate

So, you have done the homework and are fairly convinced about your startup idea. Why not validate the idea with the real world now? This is the time to expose your idea to a small group of potential customers. Make a list of 10-15 people in your surrounding who, you think, could be the potential customers for your startup. Sit for an informal interview with them without making them feel as if you are trying to sell anything to them. Refrain from using jargons. Keep your explanation sweet and simple. Don’t just seek unabashed review from your interviewees, but also take note of their gestures and expressions. Their validation, though informal, will give a fair idea about your startup’s position in the market.

Put in Commitment

It’s human to slow down unless one has something significant at stake. In this case, it should be your time and savings. Hallmark your commitment to your startup by investing a minimum 10% from your savings into it. This shall keep you on your toes for there’s no way you would want your hard-earned savings get flushed into the ditch. You will also assuredly squeeze out hours to dedicate to your startup no matter how tied-up you maybe with your other errands.

Hire a Team

Next comes one of the most important, yet one of the most slackened steps: appointing the right set of employees. A startup environment demands multi-skilled employees who are ready to work an extra hour or an extra day for a not-so-handsome remuneration in the beginning. The right set of employees at the early startup stage can be crucial to a startup’s fate. Decide on the key skills required and hire accordingly.

List down the possible Investors

Now is the time to build the list of the first set of investors to pitch. The most feasible choices at this seed stage are the 3 Fs – Family, Friends, and Fools – and the angel investors.

Build a Prototype

So, your seed funding sources are at place. And you have also hired the right set of people. This is the perfect time to create your product prototype. Prototyping helps pick apart the assumptions about the startup. It enables you to see the usability of your product to the end users and also where it has failed. You can tweak your product/service accordingly. It’s easier to make changes based on feedback at a nascent stage than when the product has already hit the market.

Launch Locally

Who doesn’t want to take the world by storm with their startup launch? Yet, it might be a better bet to stay restrained and make a local launch first. Starting locally is a lean strategy to ensure minimum waste and maximum value for customers. It lets you the opportunity to test launch the product at a small-scale, draw early feedbacks, develop a deeper understanding of the customers, and scale up while focussing on perfecting value for customers.

Legalise

Next most important task is to legalise the set up. Get it registered. Apply for trade license. Open a bank account. Get registered with the DIPP (Department of Industrial Policy and Promotion). If your entity is registered in Assam, apply for MASI (My Assam ID).

Communicate

As soon as you’ve applied for registrations, pull up your socks and go all guns blazing to let the world know about your product. It’s time to make the presence felt everywhere. Grab on every opportunity for public appearance, be it at a seminar, workshop, exhibition, or a trade festival. Leave no stone unturned in participating in celebrated contests or challenges that are of interest to your startup.

Meanwhile, keep following up with your seed investors. Get the money and take off.

In 2015, when India was still trying to warm itself up to the concept of drones, two young men from Guwahati, Biswajit Dey and Ritesh Kanu, started conducting aeromodelling workshops in different educational institutions in their work town Kolkata, under a brand called EduRade. That was the beginning of their startup story.

Soon, Biswajit and Ritesh, along with their childhood friend and Co-Founder, Debajit Deka, expanded to a Pan India reach, holding workshops at esteemed educational institutions like the IITs, the NITs, and various regional colleges across the country. Within a span of a year, EduRade had trained over 1000 students. However, these training programs were a part of the company’s bootstrapping mechanism to fuel the greater picture.

“Our main mission was to design solutions in the surveillance industry which had drones in it. But in order to start, we needed funds. So, we started with our educational brand, EduRade in December 2014. The fund accrued from the brand was channelized towards our survival as well as for the R&D,” says Biswajit.

The strategy bore fruit in 2016 when they bagged a tender from the DRDO for their newly developed product under the brand, Drones Tech Lab. And that’s when they founded RCHobbyTech Solutions Private Limited. It was also during this period that Biswajit and Ritesh succeeded in getting incubated at the IIM Calcutta Innovation Park.

Drones Tech Lab offers expertise in designing and integrating Drones for Surveillance, Industrial Inspection, Aerial Survey, and Smart City Mapping. The brand develops and deploys customized drones to meet the multifarious needs of the concerned clients. Apart from the DRDO, it has offered services to the Indian Army, the Indian Airforce, the NDA, the National Disaster Management Authority, the National Informatics Centre, the Archaeological Survey of India, and the West Bengal Police, to name a few. Drone Tech Lab’s corporate clienteles include Larsen & Turbo, JSW, and GENSTRU among others. And the services have garnered a lot of praises.

 “Our efforts to control the dengue menace in Kolkata, in collaboration with the Kolkata Municipal Corporation, by deploying our systems to check accumulation of waters in rooftops received a lot of appreciation. And our commitment to help the defense forces detect the insurgents in extreme weather conditions through our sensors-equipped micro drones was also accepted well,” Debajit says.

Drones Tech Lab was also in news recently for developing specialised drones to help pluck the best Darjeeling tea by accurately identifying the optimal areas for pruning and plucking.

Under the guidance of Dr. Subhrangshu Sanyal, the CEO, IIM Calcutta Innovation Park, the brand has been able to bag a soft loan of Rs. 20 lakh from the IIMCIP and a loan of Rs. 80 lakh from the UBI. But the lion’s sum has come from Balmer Lawrie & Co. Ltd under Startup India, garnering a fund of Rs. 1.5 crore from them.

Although Biswajit and Ritesh are steadily scaling heights, the process of scaling up has been more difficult than starting. Apart from the struggle to ensure a constant flow of funds for meeting client demands, team expansion has been an issue. Working in a startup environment comes with its own set of challenges, which demands the team to be up on its toes every day for maximum hours. However, not everyone is ready to work under such a taxing setup.

“When you are in the process of scaling up, you need a good team that shares your vision. Startup demands a brainstorming environment where things must develop every day. We aren’t finding the right set of people to work in this challenging startup setting,” Biswajit reveals.

In 2017, the company, after consulting with their IIMCIP mentor, Mr. Devasis Gupta, took a tough decision to suspend the commercial operations of EduRade except for meeting the prior commitments. As Ritesh says, “Though both the brands (EduRade and Drones Tech Lab) were running nicely, it was no more feasible to run both the brands simultaneously.” The good news is that they are contemplating on reshaping EduRade into a franchise model in the coming time.

Interestingly, neither Biswajit nor Ritesh aspired to become entrepreneurs. Entrepreneurship happened by a stroke of fate when Biswajit, an aeronautical engineer, had to give up his job in the Indian Army following an accident during the training days at OTA Chennai. The startup idea rose from the ashes of his career setback. Ritesh, who was comfortably placed in the corporate world with his smart marketing niche, decided to give up his job to join his friend on an uncertain entrepreneurial journey. And it’s their courage to come out of the comfort zone and take a risk, and their hard to kill attitude that makes Biswajit and Ritesh’s story so much more awe-inspiring.