For these two, failure is a bigger teacher
Behind almost every successful venture is a failed startup. So why do we only celebrate success, and not failures? That is the logic behind Fuckup Nights, the global event that gives “Fuckupreneurs” a platform to tell their own stories of failed ventures, in the hope that others like them will learn and succeed.
The first session of Fuckup Night, which will be a monthly feature henceforth, was held here on Monday at BHive, a co-working space in Indiranagar. Entrepreneurs are given 7 mins each to tell their stories (and beer to celebrate their failure), and then the session is opened up to questions, encouragement and observations. Two entrepreneurs ended up sharing their startup stories in the midst of a group of about 70 from the city’s thriving startup community.
Bangalore Mirror brings to you the stories of these brave entrepreneurs and what they learnt from their unsuccessful attempts.
Venture that failed: Charley’s Kitchen
VISHAL BHARDWAJ
The Idea: Serve freshly cooked food to people at a lower cost, while ensuring high quality and great taste.
Business model: There was a central kitchen where four types of meals were cooked: egg, paneer, vegetarian and chicken. They targeted students of Christ College and gave them an option to place their dinner order by 6 pm. Each meal was charged Rs 60. The idea was an instant hit and they started selling more than 100 meals each day at Christ College.
What went wrong: When the word started spreading about the cost and quality of the food being served at Christ College, a few corporate in the area approached them. While the startup agreed to take the requests, it wasn’t yet ready to handle the big orders and the associated costs. As the venture started spiralling downwards, so did Bhardwaj’s morale. He didn’t even realise this until he was diagnosed with clinical depression. That’s when he decided to shut shop and take a holiday.
Mistakes made
1. They decided on the rates on the basis of the cost of raw materials. They did not calculate overhead costs such as rent, salary of the chef, transportation, etc. This eventually led them to losses.
2. They didn’t have anyone on the team who had experience or knowledge of the food industry. The inexperience cost them dearly. For example, there is a rise and fall of prices of vegetables every 15 days. They had not taken into account this fluctuation and, hence, incurred losses.
3. They were unaware of the legal requirements.
4. They never calculated the everyday costs of running a business.
5. They got big corporate tie-ups, but there was never a definite number to the orders placed. This led to a lot of food wastage, and eventually to losses.
Lessons to learn
1. Find out if the product your startup is offering is solving a real-time problem.
2. Always think in terms of having a company that is affordable and scalable.
3. Does the product ease the life of the customer in any way. If it does, then the customer would make it a daily routine or a part of their life.
4. Always have a business model that is low-cost and makes a profit on which it can be sustained for a few months. A business model should not depend on funding, which may or may not come.
5. Always have a good team in place, with at least one person who has practical experience in the field you are entering.
SACHIN VASANTH SHENOY
Venture that failed: A company in the online-to-offline space
Idea: Get all the deals, discounts and best offers available at local retail stores online and give it to the customers. In 2014, the idea of the online world entering the offline market was trending. This was when Shenoy, and two other co-founders, entered this space.
What went wrong: His one big mistake, Shenoy says, was his choice of co-founders (a friend and his brother). Bringing personal relationship into business was a bad idea. There came a point when he finished a campaign and took off to Goa on a holiday. After thinking about it for three days, he came back to Bengaluru, but never went back to the company.
Mistakes made
1. He erred in his choice of co-founders.
2. While the other two fought each other, Sachin often ended up doing all the work and playing multiple roles in the venture.
Lessons to learn
1. The right business partner can make all the difference.
2. Bad team dynamics could smash you to the floor.
3. Ensure that you keep it professional and not bring personal matters to work.
4. Be clear about your rights in the company.
5. Always stay relevant in the company.
6. Find an approachable mentor or a guide.
A global event
Fuckup Night is a global event. The first Fuckup Night happened in Mexico City in September 2012. Since then, people gather every month to drink beer and listen to three stories about failure. The concept evolved from a mezcal-infused conversation between five friends who felt the need to break free from the notion surrounding ‘failure’. As fellow entrepreneurs and soon-to-be “fuckupreneurs”, they deeply believed in communicating failure as a positive step towards the road to success.
These five friends had learned this powerful lesson from the countless stories of failure experienced by Mexico’s most admired men and women. However, they were aware that failure stories were rarely published or narrated in forums. Hence, they choreographed Fuckup Night.
The first session of Fuckup Night, which will be a monthly feature henceforth, was held here on Monday at BHive, a co-working space in Indiranagar. Entrepreneurs are given 7 mins each to tell their stories (and beer to celebrate their failure), and then the session is opened up to questions, encouragement and observations. Two entrepreneurs ended up sharing their startup stories in the midst of a group of about 70 from the city’s thriving startup community.
Bangalore Mirror brings to you the stories of these brave entrepreneurs and what they learnt from their unsuccessful attempts.
Venture that failed: Charley’s Kitchen
VISHAL BHARDWAJ
The Idea: Serve freshly cooked food to people at a lower cost, while ensuring high quality and great taste.
Business model: There was a central kitchen where four types of meals were cooked: egg, paneer, vegetarian and chicken. They targeted students of Christ College and gave them an option to place their dinner order by 6 pm. Each meal was charged Rs 60. The idea was an instant hit and they started selling more than 100 meals each day at Christ College.
What went wrong: When the word started spreading about the cost and quality of the food being served at Christ College, a few corporate in the area approached them. While the startup agreed to take the requests, it wasn’t yet ready to handle the big orders and the associated costs. As the venture started spiralling downwards, so did Bhardwaj’s morale. He didn’t even realise this until he was diagnosed with clinical depression. That’s when he decided to shut shop and take a holiday.
Mistakes made
1. They decided on the rates on the basis of the cost of raw materials. They did not calculate overhead costs such as rent, salary of the chef, transportation, etc. This eventually led them to losses.
2. They didn’t have anyone on the team who had experience or knowledge of the food industry. The inexperience cost them dearly. For example, there is a rise and fall of prices of vegetables every 15 days. They had not taken into account this fluctuation and, hence, incurred losses.
3. They were unaware of the legal requirements.
4. They never calculated the everyday costs of running a business.
5. They got big corporate tie-ups, but there was never a definite number to the orders placed. This led to a lot of food wastage, and eventually to losses.
Lessons to learn
1. Find out if the product your startup is offering is solving a real-time problem.
2. Always think in terms of having a company that is affordable and scalable.
3. Does the product ease the life of the customer in any way. If it does, then the customer would make it a daily routine or a part of their life.
4. Always have a business model that is low-cost and makes a profit on which it can be sustained for a few months. A business model should not depend on funding, which may or may not come.
5. Always have a good team in place, with at least one person who has practical experience in the field you are entering.
SACHIN VASANTH SHENOY
Venture that failed: A company in the online-to-offline space
Idea: Get all the deals, discounts and best offers available at local retail stores online and give it to the customers. In 2014, the idea of the online world entering the offline market was trending. This was when Shenoy, and two other co-founders, entered this space.
What went wrong: His one big mistake, Shenoy says, was his choice of co-founders (a friend and his brother). Bringing personal relationship into business was a bad idea. There came a point when he finished a campaign and took off to Goa on a holiday. After thinking about it for three days, he came back to Bengaluru, but never went back to the company.
Mistakes made
1. He erred in his choice of co-founders.
2. While the other two fought each other, Sachin often ended up doing all the work and playing multiple roles in the venture.
Lessons to learn
1. The right business partner can make all the difference.
2. Bad team dynamics could smash you to the floor.
3. Ensure that you keep it professional and not bring personal matters to work.
4. Be clear about your rights in the company.
5. Always stay relevant in the company.
6. Find an approachable mentor or a guide.
A global event
Fuckup Night is a global event. The first Fuckup Night happened in Mexico City in September 2012. Since then, people gather every month to drink beer and listen to three stories about failure. The concept evolved from a mezcal-infused conversation between five friends who felt the need to break free from the notion surrounding ‘failure’. As fellow entrepreneurs and soon-to-be “fuckupreneurs”, they deeply believed in communicating failure as a positive step towards the road to success.
These five friends had learned this powerful lesson from the countless stories of failure experienced by Mexico’s most admired men and women. However, they were aware that failure stories were rarely published or narrated in forums. Hence, they choreographed Fuckup Night.
