Startups in the Internet of Things or any other sector are often vibrant and full of potential.
Founders may think that a large number of Requests for Proposals (RFPs) is a sign of impending success.
It appears simple: more RFPs suggest more interest, increasing the chances of securing projects.
However, the path from receiving an RFP to signing a contract is often fraught with unexpected challenges.
Learn the reality of RFPs.
The Ambiguous Nature of RFPs
RFPs serve as a means for potential clients to request information.
They use RFPs to assess project feasibility, explore solutions, and compare costs.
Receiving numerous RFPs might feel like a victory for a startup, but it’s vital to remember that these are merely openings, not promises of work.
The Hidden Risks of RFPs
Startups soon learn that RFPs can be a treacherous terrain.
There are times when, after dedicating significant effort into a detailed proposal, the inquiring party may pass this proprietary work to another vendor.
This unethical practice can lead to a startup’s innovative ideas being presented under a different name, which is not only discouraging but also shakes the very trust in the RFP process.
Strategies for Protecting Your Work
Learning from these setbacks, startups understand the importance of cautious engagement in the RFP process.
It’s about finding the sweet spot: revealing enough to pique interest but withholding enough to prevent idea theft.
Implementing protective measures like Non-Disclosure Agreements (NDAs) or being vague about specific methodologies and pricing can help secure a startup’s interests.
Growth Through Challenges
Every setback can teach a valuable lesson.
Through unfortunate events involving RFPs, entrepreneurs learn to safeguard their intellectual property, identify sincere interest, and approach business deals with a new level of wariness.
Photo by Romain Dancre on Unsplash
Conclusion and Entrepreneurial Wisdom
RFPs are a part of the business game, but they are not always as promising as they seem.
For entrepreneurs in the startup world, the key is to differentiate between mere allure and real opportunities.
Here are the lessons learned:
View RFPs as potential leads rather than confirmed business.
Use NDAs and share information judiciously to protect your ideas.
Recognize and avoid the traps that may come with RFPs.
Look for true interest behind the request, not just a quest for free information.
Embrace resilience and adaptability, as they are indispensable in the entrepreneurial journey.
I began an exciting startup venture by creating an innovative IoT product to improve safety and comfort for seniors living alone.
Recognizing the potential of an aging global population, we saw a significant opportunity.
We see a huge market since the world has become an aging population world.
Our parents are getting older.
Most of them are living alone. But the idea is not to leave them alone.
The Sweat Building a Tech Product
We build a technology that can monitor them remotely.
It was an exciting day as we thought it could solve the peace of mind problem, leaving our elderly parents at home knowing their safety and health.
We spent more than two years building the product. We spent so much time and money.
We have the challenge of either focusing on building the hardware by ourselves, outsourcing, or just buying off the shelves.
After so much deliberation, we finally chose the fastest way by defining our specs and searching for a company that has the hardware but is willing to make some custom changes to the firmware that suit our needs.
It took us over six months to finally work with a manufacturer in China. But it’s not an easy relationship. We managed to secure it because we convinced them that the market would be very big.
Too Focused on Tech
Most of the team members are tech, and that’s where we put most of our efforts and money.
A big mistake that we realize later was we didn’t spend much time getting users feedback.
We didn’t reach out to as many potential customers.
We tried very little to get trial users in the early stage.
When we had small traction in the elderly market, we received another idea: why not expand to the Hajj pilgrimage market where people can get easily lost?
We re-justify our market segment by making our assumptions.
We have given trial users to use the new M2M sim card, which has the roaming capability to travel from home to overseas.
Finding the right telco and having the correct pricing is also a challenge.
Not all telcos in Saudi support the roaming sim card. But we also found out that the firmware of the smartwatch also needs to support the particular telcos.
Thus, making our product work in different situations was a challenge.
Burning Cash – The Survival Mode
Challenges in Securing Funding
As more than a year passed, we are burning cash. It has reached seven digits, and we have not seen a gold mine yet.
We have to find funding, and we need to draw investor interest fast.
Despite reaching out to over 70 venture capitalists through various means, finding willing investors proved daunting.
It was at the very early stage of the products when we pitched our product.
In fact, at that stage, it was only a Minimum Viable Product (MVP) and didn’t have enough market traction.
Our only compliments were that we had such a fantastic product.
But yet… no one was willing to invest.
Valuable Lessons from Investor Interactions
The feedback we received was enlightening. Investors were hesitant, citing our newness in the market and need for real customers.
Our pricing strategy and lack of a concrete business plan did not win them over, and we lacked health industry expertise, which was critical for our product’s success.
We should have brought in a health advisor or medical doctor in our team to advise whether our iot product suits the healthcare market or not…. But we didn’t.. And that is also our big mistake.
The Covid-19 Pandemic Killed Our Product
At one time, we were very excited when all the trials were done successfully in preparing for the Hajj.
However, we were hit with Covid-19, and mobility was restricted for two years, and there was no Hajj pilgrimage.
Our product hits a halt.
By the time the pandemic is over, the product will seem obsolete. People wanted a better wearable device.
However, our partner in China has become silent and no longer entertains our requests.
Finally, we decided to axe the product and focus on new ones.
But that will be another story.
Overcoming Rejection
The journey was not easy, especially dealing with the rejection and criticism from potential investors.
However, these challenges did not deter us.
Photo by Jakayla Toney on Unsplash
Growth and Resilience
Our startup has survived beyond the critical six-year mark, learning from each obstacle and rejection.
We’ve honed in on our strengths and developed a robust business model attractive to investors, emphasizing the necessity of proving our product’s market fit.
Preparing to Re-engage
With newfound insights and a reinforced plan, we are poised to approach the funding arena again, equipped with a comprehensive understanding of our past lessons.
Lessons for Fellow Founders
For fellow entrepreneurs, every difficulty is an opportunity to learn and grow.
Here is a summary of the crucial lessons learned:
• Embrace the startup challenge with tenacity and the realization that significant market needs drive success.
• Understand the arduous nature of securing early-stage funding and the importance of a compelling business plan and sales strategy.
• Industry expertise is vital; lack thereof can harm your product’s relevance and appeal.
• Strive for product-market fit as a primary indicator of your product’s potential.
• Convert criticism into constructive feedback to fortify your business approach.
• Maintain persistence, as a startup’s survival often depends on overcoming early failures.
• Use experience to sharpen your startup’s focus and refine strategies for growth.
• Prepare thoroughly for funding pitches, leveraging past lessons to enhance your prospects.
• View setbacks as opportunities to build a stronger foundation for future endeavors.
• Cultivate adaptability and a willingness to learn from mistakes, which are essential for long-term success.
Photo by Ian Schneider on Unsplash
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As a startup founder, I’ve pitched to investors many times.
Each pitch is a challenge – creating the perfect one is tricky.
I try to make my pitch better each time, but there’s always something that doesn’t quite work for someone in the audience.
The Challenge with Pitch Decks
Every time I make a pitch, it feels like I’m repeating myself, but there’s always something new to fix.
The slides I make to show my business idea can sometimes confuse people. Even if I fix things, someone always has different advice.
Some people don’t get it when I talk about the problem my business solves.
They might think my idea isn’t unclear or don’t see how big the opportunity is.
And when it comes to money, everyone has a different opinion on whether my goals are realistic.
Choosing the right colors and graphics for the slides is tricky, too.
If I use too many pictures, people can’t understand my message.
If I put too much information, they can’t read it all in time.
The Rush of the Pitch
When I pitch, I only have five minutes.
That’s like the time it takes to drink a cup of coffee.
In those five minutes, I have to share everything about my business. It’s tough because every detail matters, and I have to move fast.
Seeing Both Sides
I’ve also been a judge for other people’s pitches.
I’ve seen that nobody’s pitch is perfect. Being a judge has taught me that what one person likes, another might not.
So, I’ve learned that a pitch has to change depending on who’s listening.
Learning from Each Pitch
Every time someone gives me feedback on my pitch, I learn something.
I take their advice and make my pitch more straightforward and more powerful.
Even when the feedback is tough, it helps me get better.
My pitch changes with each presentation, and that’s a good thing. It shows that I’m working hard to improve.
The Road Ahead
I’m ready for more pitches and more changes.
Every time I pitch, I get to make my business look better to investors.
The comments and different opinions aren’t just problems; they help me learn and grow.
I’m excited to keep on pitching.
With each pitch, I’m telling the story of my business, and one day, that story will be about success and never giving up on finding the perfect way to share my dream.
Photo by Matthew Osborn on Unsplash
Lessons Learned
Through all these pitches, here’s what I’ve learned:
Flexibility is critical: A pitch deck is never finished. It changes based on who you’re talking to.
Feedback is a gift: Even when it’s tough to hear, feedback strengthens you and your pitch.
Time is precious: In a short pitch, every second and every word has to count.
Understanding your audience matters: What works for one person might not work for another.
Perseverance pays off: Even if the perfect pitch is a myth, striving for it will lead you to greatness.
Every pitch is a step on the journey of a startup.
It’s not just about convincing investors; it’s about refining your vision and learning how to share it with the world.
The best way to learn about entrepreneurship is by learning about the failures. Check out my latest eBook, “Startup Survival”.
As a seasoned startup founder, the world of investor pitches has become a familiar, yet perpetually challenging, battleground.
The quest for the perfect pitch is a Sisyphean task; with every roll of the deck up the hill, comments on its weaknesses seem to bring it back down.
It’s a dance of adaptation and resilience, where the music never stops and the steps are constantly changing.
The Paradox of the Pitch Deck
Every pitch feels like déjà vu with a twist.
The slides, those colorful beacons of hope, often seem to betray me. Despite countless revisions, each presentation is met with a new wave of critique.
It’s a canvas that refuses to dry, forever wet with the ink of “just one more tweak.”
It starts with the problem statement—too vague for some, too narrow for others.
My solution, crystal clear to me, often morphs into a mirage for the audience.
The market size? A figure either too optimistic or too conservative, depending on who you ask. As for financial projections, they are met with raised eyebrows—either too ambitious or not ambitious enough.
Uniqueness? A debate ensues: is our solution truly innovative, or just a shadow of something already out there?
Color schemes spark discussions not unlike those in art galleries, while the balance between graphics and text teeters on a fine line between enlightenment and confusion.
Too many graphics, and the message is lost in a sea of pixels; too much text, and the slide becomes a dense novel no one has the time to read.
The Five-Minute Sprint
Pitching is an art constrained by the unyielding frame of time. Five minutes—the breadth of a coffee break—is all I have to encapsulate years of toil and dreams.
It’s a sprint where every second counts, every word must earn its place, and every slide is a scene in a rapid-fire storyboard.
This is no leisurely stroll through the park; it’s a race against the clock where the stakes are as high as the hopes that buoy my pitch.
On Both Sides of the Pitch
Sitting on the other side as a judge, I watch other founders navigate the same treacherous waters.
Their decks, too, are imperfect vessels, subject to the capricious winds of opinion.
As a critic, I’m part of a panel with as many tastes as there are members. What I find compelling, another may dismiss.
A problem statement that resonates with me might not echo in the corridors of my peers’ thoughts.
This duality of roles has taught me that the pitch deck is not a one-size-fits-all garment but a bespoke suit that must be tailored to each audience.
It has shown me that while feedback is invaluable, it is also a reflection of personal biases and expectations.
Improving Against the Odds
The continuous cycle of pitching and revising is a relentless teacher. It hones my message, sharpens my focus, and refines my delivery.
Each critique, each furrowed brow, and each nod of understanding are lessons in disguise.
They are the subtle hints that guide my revisions, pushing me towards that ever-elusive perfection.
I’ve come to embrace the impermanence of my pitch deck as its strength. It is not a static set of slides, but a living document that evolves with each presentation.
It’s a testament to the journey, not just a tool for the destination.
Here’s to Hundreds More
I toast to the next hundred pitches and the next hundred changes.
Each one is an opportunity to perfect my craft, to sway the skeptics, and to ignite the imaginations of those who hold the keys to the future.
The comments, the critiques, and the ever-shifting sands of preference are not hurdles but stepping stones.
I stand ready to walk this path, deck in hand, resilience in spirit, and an unwavering belief in the vision that set me on this course.
May each pitch be a thread in the tapestry of a story that, when finally told in its entirety, speaks of success, perseverance, and the inimitable spirit of a founder who never gave up on the quest for the perfect pitch.
The journey of entrepreneurship is incredibly varied, with each person’s experience being utterly unique.
Even if entrepreneurs have the same education and theoretical knowledge, their paths can lead to vastly different outcomes.
Some may achieve remarkable success, while others might face significant challenges.
This disparity can be confusing, as it is not always clear why some entrepreneurs thrive while others do not.
The Role of Decisions and Risks
Success in entrepreneurship isn’t just about following a set formula; it’s about the choices we make and the risks we’re willing to take.
Applying theoretical knowledge to the real world requires decision-making and risk-taking that can shape the course of our entrepreneurial journey.
Making Bold Decisions: Successful entrepreneurs often make bold and decisive choices. They are not afraid to take calculated risks, even when the odds are not in their favor.
Choosing Your Path: Not every entrepreneur needs to be bold and risky. Some may choose a more cautious path, and that is completely acceptable. Every choice, big or small, influences the direction of our entrepreneurial journey.
The Importance of Speed and Analysis
How quickly we make decisions can also significantly impact our entrepreneurial journey.
Moving Swiftly: Some entrepreneurs act quickly, taking advantage of being the first in the market and embracing a ‘fail-fast’ mindset.
Being Thorough: Others take their time, conducting in-depth analyses and gathering data before committing. Both approaches have their benefits, and it is crucial to understand what method suits your style best.
Networking and Building Relationships
The connections we make along our entrepreneurial journey can be transformative.
Finding Game-Changers: Networking with the right people can lead to exciting collaborations, investment opportunities, and access to new markets.
Building Support Networks: Creating a strong support network helps entrepreneurs overcome challenges and celebrate successes together.
Learning from Every Step of the Journey
Entrepreneurship is an ever-evolving journey filled with a variety of paths and lessons.
Embracing Failure: Viewing failure as a learning opportunity is vital. It provides feedback, helps refine our approach, and brings us closer to our goals.
Building Resilience: Every setback is a chance to grow stronger and more resilient.
Conclusion: Celebrating the Diversity of Entrepreneurship
There is no single path to success in entrepreneurship; it is a continuous journey of exploration and learning.
Appreciating Different Paths: We should celebrate entrepreneurs’ diverse paths and learn from each other’s experiences.
Supporting Each Other: Encouraging and supporting one another is crucial as we navigate the uncertainties of entrepreneurship.
Embracing the Journey: Remember that the entrepreneurial journey is ours to shape, and with each step, we get closer to making our dreams a reality.
Photo by Mantas Hesthaven on Unsplash
Lessons Learned:
Every entrepreneurial journey is unique.
Success in entrepreneurship requires more than just theoretical knowledge.
Decisions and risks play a crucial role in shaping our journey.
The speed at which we make decisions can significantly impact our path.
Networking and building relationships are vital for success.
Embracing failure and viewing it as a learning opportunity is key.
Resilience is built through overcoming challenges.
There are many paths to success in entrepreneurship.
Supporting and learning from each other enriches our own entrepreneurial experience.
Embracing the journey with courage and determination brings us closer to achieving our goals.
Photo by Christina @ wocintechchat.com on Unsplash
Are you a fresh graduate?
How do you compete with experienced candidates?
The Power of Project Experience
Academic grades are often prioritized when hiring fresh graduates, but I’ve found that the real value lies in their project experiences.
Resumes filled with honors are impressive, but hands-on experience is the actual edge.
Projects: Uncovering Skills and Abilities
Projects, whether assignments, group tasks, or final-year projects, reveal a candidate’s practical skills, critical thinking, and collaboration abilities.
Unfortunately, resumes usually only list project titles, offering limited insights.
Interviews: Showcasing Your Potential
During interviews, candidates can shine by detailing their project experiences.
However, some fail, especially if they outsource their projects or don’t engage deeply.
Hands-on experience is invaluable, offering real-world work exposure and skill development.
The Importance of Hands-On Learning
What sets candidates apart is how they handle academic projects, especially final-year ones.
Taking projects seriously, choosing wisely, and excelling in them can be the key to unlocking your dream job.
Choosing Challenging Final Year Projects
Choosing challenging final-year projects is essential, as they test academic knowledge, innovation, troubleshooting, and collaboration skills.
Handling these projects well mirrors real job responsibilities.
Conclusion: Your Path to Success
In conclusion, when preparing for job interviews, remember these key lessons:
Beyond grades, hands-on project experience is crucial.
Projects reveal practical skills, critical thinking, and collaboration abilities.
Articulate project experiences during interviews.
Hands-on experience offers real-world exposure and skill development.
Choose challenging final-year projects to prove your mettle.
Handling projects well is a differentiating factor in job interviews.
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I am not a master in product pricing when I started my Startup.
I have tried many pricing strategies. I learned that it will evolve when we engage our customers regularly.
As a Startup founder, starting a business is an exciting journey filled with highs and lows.
Determining the perfect pricing strategy for our product is one of the paramount challenges, and it becomes even more intricate without direct competitors or unique local markets.
How do you perfectly price it?
You will not get it right the first time. It will evolve with time.
The idea is to be brave and try it out.
Facing the Unknown: Pricing Without Competitors
Setting a price for startups without direct competitors becomes a venture into the unknown based on assumptions and educated guesses.
This lack of competitive benchmarking can lead to prices that are either too high, risking customer alienation, or too low, risking product undervaluation.
Understanding Local Market Affordability
A strategy that works in one market might fail in another due to differences in purchasing power and economic conditions.
Startups must thoroughly research and understand the local market affordability to tailor their pricing strategies accordingly.
The Role of Branding in Pricing
Unlike established brands that have the luxury of setting higher prices due to perceived value, startups need to work on building their brand while setting prices that attract customers and reflect the product’s value.
Finding the Perfect Price
Adapting prices based on customer feedback is crucial.
Startups must be ready to adjust their pricing strategy, whether that means lowering prices through discounts and bundles or increasing them to avoid undervaluing the product.
This highlights the need for a flexible, customer-centric approach.
Value-Based Pricing: A Winning Strategy
Focusing on the value provided to customers, rather than just cost and margin, can lead to more successful pricing strategies, resulting in customer satisfaction and loyalty and aligning the product’s price with its perceived value.
Conclusion: The Art and Science of Pricing
Mastering the art of pricing is a delicate balance between understanding the market, positioning the brand, and delivering value to customers.
It is critical to driving sustainable growth and establishing a strong market presence.
For aspiring entrepreneurs, the takeaway is to invest time in market research, remain adaptable, and always prioritize delivering value.
By doing so, you set the foundation for a successful and stable business venture.
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Dr. Mazlan Abbas 