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How much does a city matter for a start-up?

I am Shashank Graduate from NIT Bhopal in 2012, I am thinking for a starting a start-up and planning from last 30 days like research and all.

 

As of starting I don’t have much money (frankly 10K and then can borrow from friends and family) for start…..So I am thinking of giving a start from Jaipur (my home town) and then can shift to delhi or somewhere else….

 

As Jaipur 2 tier city….So what is your thought for that?

and what do you think about response in Jaipur…(I know that response will depend on idea and way of execution not on city but still)

 

Idea is related to e-commerce website for poster print and gifts.

 

Thank you in advance.

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11 Comments

  1. we have an amazing startup from jaipur working for us

    ask rohit@c2w.com for details

  2. Shashank

    The world is flat. It does not make any difference whatsoever, as to where you start.

    Infact, there are multiple advantages of starting in Jaipur. 

    • Its your hometown
    • Cost of living is much lower
    • Overheads are lower
    • In your quest to start into uncharted territory, familiar surroundings will keep you strong
    • Jaipur has lesser hustle-bustle and less external factors pulling you in different directions 

    That’s as far as your external factors.
    All this would make a difference in your offering, since you would be able to first bring together great talent and as you have a lower cost base to cover, achieving profitability will be faster.

    Keep It Simple, Shashank. Location is the least of your worries. A lot of great companies out of India, are not based in Metros. 
    Spend more time on how and what all you can do with a low startup capital and how best you maximise innovation.

    Our best wishes, go ahead and reach for the stars. Even if you do fall, you’ll land on the moon !

     

  3. Hey Shashank,

    Congratulations!!!   These are early days, but you exemplify the meaning of an entrepreneur (“one who has more passion & ambitions than resources”). E-commerce is seeing some negative investor sentiments for the time being (thats what I hear), so having a differentiated niche and a super-attractive value proposition for the market is really important while finding jugaadu ways of building it within minimum cost. Having said that, getting visibility and getting money are important in your business, so the city of operations will really matter, at least in this case.

    Although, we are not an e-commerce venture, yet somebody from the PR agency which services accounts like Snapdeal, Yebhi, etc. told me that its somewhat strange, but very very true that only (worthy) companies based in either Delhi, Mumbai or Bangalore really make it big especially in e-commerce type ventures in India, even though their real business might be coming in from tier-2 towns. Probably, not enough media & investor attention going to e-commerce businesses in other cities. So, I strongly suggest shifting in Delhi if you have got a well-thought out plan ready. You might also be able to find a good number of mentors in a big city like Delhi vis-a-vis Jaipur which might offer cheaper talent & office space as a benefit.

  4. hey shashank!!!!

    i don’t really think that will be concern as told by @aditya babbar. it could infact be very fruitful as the local talent can be engaged bit easily and at effective wages,whereas that would not be much easily possible in bigger cities.as the concept is e-commerce so you have to send to other places, so instead of worrying for location you should pay more attention on getting more cleared with your idea that whatever are you thinking off, is actually what you want to do, as you alike many of us are in early stages will be again and again over time will be sorrunded by various questions which are only be going to catered by you. if you have all the resources to start of with the project from your hometown then boss chill out and stop thinking about it and start paying attention to all other important aspect..(logistics,your plan and whatever funds you think are necessary for starting).

    take care!!!

  5. Running a web based startup doesn’t require a office in metro city (I am running my company from Lucknow since last 10 years.)

    Since you are going to run an ecommerce website the most important part for you will be logistics. If you can manage that in Jaipur than you are good to go from any city in India.

  6. dear shashank

    connect with me giving this reference on    rosaindica@yahoo.com

    let’s discuss

    regards

    himanshu

  7. Dear Shashank

      I wont say much, do what ever that lower your expenses, when you lower the expenses then you can feel happy margins in business. according to your family conditions, surrounding climate decide which ever best suits you and best saves your money 

    Thanks

    Sai

  8. After 30 days of research, what are the 5 things your business needs to get started?  Of these, what cannot be achieved in Jaipur ?

  9. @ Shashank: Geography is HISTORY. You can start a great company anywhere, even from Bihar. The online domain where you’ll be venturing in, I think Akshay Butani of bombaymerch.com is already doing the same. 
    Thanks 🙂

  10. Shashank,

    Based on the nature of the startup, the location can matter. As Mahesh mentioned, find out what all you cannot do from Jaipur before thinking of moving to another metro.

    On another track, since you are based in Jaipur, try and tailor your offering to cater to Jaipur first. Find out what are the gaps in the market there and if there is a need which is currently not being met.

    Since you dont have a large capital base to start with, one of your ‘differentiators’ can be great and personalised service…wowing a small and core base of local customers can give you revenue boost which you can then use to expand.

    Its tempting to start and look for Angel and VC money but resist the temptation…assume that you have to fund it yourself coz once you have traction it will be much easier to raise money.

    Good luck.

  11. An example of a successful business is https://www.kayako.com/company/ based out of Jalandhar of all places 

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