Small Business – Assess Runway Before Takeoff

In the year 2001, a new restaurant opened called BFC in HSR Layout. The restaurant looked awesome from outside, had great ambiance and had lot of support staff. It seemed like a sure shot business model. … The restaurant closed down in about 6 months.

Lot of people have tried their hand at running restaurant in the building on a prominent road near Jayanagar, South End Circle. All have failed so far. Just about 500m from this building there are 2 thriving businesses – a fast food restaurant and a sandwich corner.

Sometimes it is easy and clear. A layout needs a small grocery shop, somebody comes up and opens a mini market and succeeds. In the same vicinity looking at the footfall another person brought in a fitness center with proper investment and support staff. At the end of the year he burnt about 30 lakhs.

For business people from the background it is easy. They know how much money may get burnt during establishing years. For others, fail early is the Mantra many experts will give. Now, many have misunderstood the “Fail Early” concept. Sometimes, establishing a brand takes years. “Fail Early” will essentially mean what the person is targeting, what is the depth of pocket, what is the focus and with all that on table what should be the plan for immediate future.


A person is taking a loan of 10 Lakhs with hopes of getting 20 K back every month. He/She needs to observe and watch the return for 3-5 months and know where the business is heading. He would be burning about 2 lakhs by then if the returns are not as expected.The venture is something that he is trying out and cannot be a blind ambition.

A person is investing 20k to 50k monthly in establishing an online training center. She is not looking for immediate return. She is building a brand. Meanwhile to cut down the losses she adds some products as well. She is slowly testing the water. She knows she will end up investing about 10 lakhs in 2 years. She has started slowly and surely. She tested the water for online training early, “Fail Early”, but she was on it for a long haul.

Overview of the Framework

We have developed a framework, “Business Assessment for SME”, to support new entrants into business. With the tools like social media, physical network and opinion collection/sentiment analysis we develop a report on the model for the business. This will also be based on the business person’s focus and plans. With this you get to cut down on the losses, increase chances of success and invest right. While the only guarantee provider is the universe in itself, the assessment will provide a good foundation for your business ideas.

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