This is a Guest post by Gaurav Chopra, Founder of IndiaLends.com
Ask a startup job applicant what his future aspirations are, and nine of ten applicants will say they want to be entrepreneurs. Being a first-generation entrepreneur myself, it’s heartening to see so many young adults interested in starting their own venture. To any young adult, the startup field in India seems very promising right now – it’s easy to get capital if you have a good idea and team, you have the freedom to follow your passion and create impact, and the industry is filled with success stories of young entrepreneurs, the most noteworthy being Riteish Agarwal, Founder of OYO rooms, and Bhavish Agarwal, Founder, Ola Cabs.
That said, is it advisable for all young entrepreneurs to skip working and directly jump into their own entrepreneurial venture? Not in all cases. For certain industries such as Medicine or Medical Technology, Law, and Financial Technology,young entrepreneurs require some amount of industry knowledge and expertise along with passion, hard work, and perseverance, to build successful startups.
Let’s take the Financial-Technology industry as an example. Since Fin-Tech is one of the fastest growing startup sectors in the country right now, a lot of aspiring entrepreneurs would find the industry appealing to enter and start their own venture in. However, the Fin-tech space has its own set of specialized challenges and regulatory concerns which a lot of people outside the industry won’t be aware of.
For instance when it comes to consumer credit, customers themselves lack awareness of what’s the best credit product for them or how they can procure it. As a result, they want to work with solution providers who they believe have high credibility and expertise to help them make the best decisions. This makes it essential for founders to have knowledge of the stated and latent needs of the customers and their major pain points in order to create value for them. Another consideration that aspiring entrepreneurs in this space need to have is about how financial institutions operate; unless they understand the existing processes, risk assessment models, and customer acquisition strategies that financial institutions follow, it will be difficult for them to build a strong value proposition for these companies.
Finally in the Finance Services industry since money is involved, companies are subjected to a large number of regulations and guidelines to protect the interest of both consumers and financial institutions. As a business owner, it’s important for one to be aware of the regulatory environment and understand how regulatory changes will influence ones business model and scope of operations.
My recommendation for young adults who want to start a venture in sectors such as Fin-Tech, Medical, Law, etc. is to first work as an intern or employee with established companies or established startups in the space and understand the challenges that consumers and service providers face. This will help them understand what gaps to exploit, develop expertise and build strong relationships with influencers, and avoid rookie mistakes when they begin their own venture. Another thing that young aspiring entrepreneurs can do is select a co-founder who has sufficient industry expertise to hedge for their own lack of experience.
While it’s exciting to start your own venture at an early age and see it grow, it’s also important to do some introspection to be realistic of whether you have the necessary expertise and skill to execute successfully on your entrepreneurial ideas.
Disclaimer: This is a guest post. The statements, opinions and data contained in these publications are solely those of the individual authors and contributors and not of iamwire and the editor(s).
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